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Employee Benefits | 12 Months Ended
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Dec. 31, 2021
Retirement Benefits [Abstract] |
Employee Benefits | EMPLOYEE BENEFITS Healthcare We participate in multiple healthcare plans, the largest of which is partially self-funded with an insurance company paying benefits in excess of stop loss limits per individual/family. Our healthcare benefit expense (net of employee contributions) was approximately $28.4 million, $24.1 million and $21.9 million for the years ended December 31, 2021, 2020 and 2019, respectively, for all plans. An accrual for estimated healthcare claims incurred but not reported (“IBNR”) is included within accrued compensation on the Consolidated Balance Sheets and was $3.3 million and $3.1 million as of December 31, 2021 and 2020, respectively. Workers’ Compensation We participate in multiple workers’ compensation plans. Under these plans, for a significant portion of our business, we use a high deductible program to cover losses above the deductible amount on a per claim basis. We accrue for the estimated losses occurring from both asserted and unasserted claims. Workers’ compensation liability for premiums is included in other current liabilities on the Consolidated Balance Sheets. Insurance claims and reserves include accruals of estimated settlements for known claims, as well as accruals of actuarial estimates of IBNR claims. In estimating these reserves, historical loss experience and judgments about the expected levels of costs per claim are considered. These claims are accounted for based on actuarial estimates of the undiscounted claims, including IBNR. We believe the use of actuarial methods to account for these liabilities provides a consistent and effective way to measure these highly judgmental accruals. Workers’ compensation expense totaled $17.6 million, $15.7 million and $15.4 million for the years ended December 31, 2021, 2020 and 2019, respectively, and is included in cost of sales on the Consolidated Statements of Operations and Comprehensive Income. Workers’ compensation known claims and IBNR reserves included on the Consolidated Balance Sheets were as follows (in thousands):
| As of December 31,
| 2021 |  | 2020
Included in other current liabilities | $ | 8,048 |  |  | $ | 7,703 |
Included in other long-term liabilities | 13,397 |  | 11,986
| $ | 21,445 |  |  | $ | 19,689 |
We also had an insurance receivable for claims that exceeded the stop loss limit for fully insured policies included on the Consolidated Balance Sheets. This receivable offsets an equal liability included within the reserve amounts noted above and was as follows (in thousands):
| As of December 31,
| 2021 |  | 2020
Included in other non-current assets | $ | 2,137 |  |  | $ | 1,854 |
Retirement Plans We participate in multiple 401(k) plans, whereby we provide a matching contribution of wages deferred by employees and can also make discretionary contributions to each plan. Certain plans allow for discretionary employer contributions only. These plans cover substantially all our eligible employees. During the years ended December 31, 2021, 2020 and 2019, we recognized 401(k) plan expenses of $2.5 million, $2.2 million and $2.0 million, respectively, which is included in administrative expenses on the accompanying Consolidated Statements of Operations and Comprehensive Income. Multiemployer Pension Plans We participate in various multiemployer pension plans under collective bargaining agreements in Washington, Oregon, California and Illinois with other companies in the construction industry. These plans cover our union-represented employees and contributions to these plans are expensed as incurred. These plans generally provide for retirement, death and/or termination benefits for eligible employees within the applicable collective bargaining units, based on specific eligibility/participation requirements, vesting periods and benefit formulas. We do not participate in any multiemployer pension plans that are considered to be individually significant. The risks of participating in these multiemployer pension plans are different from single-employer pension plans. For example: •Assets contributed to the multiemployer plan by one employer may be used to provide benefits to employees of other participating employers. •If a participating employer stops contributing to the multiemployer plan, the unfunded obligations of the plan may be borne by the remaining participating employers. •If a participating employer chooses to stop participating in these multiemployer plans, the employer may be required to pay those plans a withdrawal liability based upon the underfunded status of the plan. We also participate in various multiemployer health and welfare plans that cover both active and retired participants. Health care benefits are provided to participants who meet certain eligibility requirements under the applicable collective bargaining unit. Our contributions to multiemployer pension and health and welfare benefit plans were as follows (in thousands):
| Years ended December 31,
| 2021 |  | 2020 |  | 2019
Pension plans | $ | 2,783 |  |  | $ | 1,128 |  |  | $ | 809 |
Health & welfare plans | 2,893 |  | 952 |  | 674
Total contributions | $ | 5,676 |  |  | $ | 2,080 |  |  | $ | 1,483 |
The increase in contributions for the year ended December 31, 2021 was driven by the acquisition of Alert Insulation in 2021 and a full year of operations for 2020 acquisitions Insulation Contractors/Magellan Insulation and Norkote, Inc. See Note 17, Business Combinations for more information. Share-Based Compensation Common Stock Awards We periodically grant shares of our common stock under our 2014 Omnibus Incentive Plan to non-employee members of our board of directors and our employees. During the years ended December 31, 2021, 2020 and 2019, we granted approximately four thousand, six thousand and eight thousand shares of restricted stock, respectively, to non-employee members of our board of directors. Substantially all of the stock will vest over a one-year service period. In addition, we granted approximately 0.1 million, 0.2 million and 0.1 million shares of our common stock to employees in each of the years ended December 31, 2021, 2020 and 2019, respectively. Substantially all of the stock will vest in three equal installments (rounded to the nearest whole share) annually over a three-year service period. Performance-Based Stock Awards We periodically grant nonvested stock awards subject to performance-based vesting conditions to certain officers. During the year ended December 31, 2021, we issued approximately 0.1 million shares of our common stock which vest in two equal installments on each of April 20, 2022 and April 20, 2023. In addition, during the year ended December 31, 2021, we established, and our board of directors approved, performance-based targets in connection with common stock awards to be issued to certain officers in 2022 contingent upon achievement of these targets. In addition, there are long-term performance-based restricted stock awards to be issued to certain employees annually through 2022 contingent upon achievement of certain performance targets. These awards are accounted for as liability-based awards since they represent a predominantly-fixed monetary amount that will be settled with a variable number of common shares and as such are included in other current liabilities on the Consolidated Balance Sheets. During the years ended December 31, 2021, 2020 and 2019 we granted approximately five thousand, seven thousand and 11 thousand shares of our common stock, respectively, all of which will vest in 2022. Performance-Based Restricted Stock Units During 2020, we established, and our board of directors approved, performance-based restricted stock units in connection with common stock awards which were issued to certain employees in 2021 based upon achievement of a performance target. In addition, during the year ended December 31, 2021, we established, and our board of directors approved, performance-based restricted stock units in connection with common stock awards to be issued to certain employees in 2022 based upon achievement of a performance target. These units will be accounted for as equity-based awards that will be settled with a fixed number of common shares. During the years ended December 31, 2021, 2020 and 2019 we granted approximately eight thousand, 14 thousand and 14 thousand units, respectively, each of which will vest over a one-year service period. Share-Based Compensation Summary Amounts and changes for each category of equity-based award were as follows:
| Common Stock Awards |  | Performance-Based Stock Awards |  | Performance-Based Restricted Stock Units
| Awards |  | Weighted Average Grant Date Fair Value Per Share |  | Awards |  | Weighted Average Grant Date Fair Value Per Share |  | Units |  | Weighted Average Grant Date Fair Value Per Share
Nonvested awards/units at December 31, 2020 | 231,280 |  |  | $ | 48.05 |  |  | 166,961 |  |  | $ | 59.97 |  |  | 13,273 |  |  | $ | 36.51 |
Granted | 55,815 |  |  | 124.88 |  |  | 42,449 |  |  | 123.32 |  |  | 8,470 |  |  | 126.89 |
Vested | (84,641) |  |  | 48.87 |  |  | (64,525) |  |  | 52.79 |  |  | (12,952) |  |  | 36.51 |
Forfeited/Cancelled | (3,101) |  |  | 62.36 |  |  | (1,484) |  |  | 123.26 |  |  | (539) |  |  | 73.06 |
Nonvested awards/units at December 31, 2021 | 199,353 |  |  | $ | 68.99 |  |  | 143,401 |  |  | $ | 81.30 |  |  | 8,252 |  |  | $ | 126.89 |
The following table summarizes the share-based compensation expense recognized under our 2014 Omnibus Incentive Plan (in thousands):
| Years ended December 31,
| 2021 |  | 2020 |  | 2019
Common Stock Awards | $ | 5,285 |  |  | $ | 4,116 |  |  | $ | 4,242 |
Non-Employee Common Stock Awards | 465 |  |  | 333 |  |  | 359 |
Performance-Based Stock Awards | 4,528 |  |  | 3,869 |  |  | 3,034 |
Liability Performance-Based Stock Awards | 2,612 |  |  | 1,969 |  |  | 432 |
Performance-Based Restricted Stock Units | 862 |  |  | 539 |  |  | 660 |
| $ | 13,752 |  |  | $ | 10,826 |  |  | $ | 8,727 |
We recorded the following stock compensation expense, by income statement category (in thousands):
| Years ended December 31,
| 2021 |  | 2020 |  | 2019
Cost of sales | $ | 448 |  |  | $ | 284 |  |  | $ | 374 |
Selling | 204 |  |  | 202 |  |  | 194 |
Administrative | 13,100 |  |  | 10,340 |  |  | 8,159 |
| $ | 13,752 |  |  | $ | 10,826 |  |  | $ | 8,727 |
Administrative stock compensation expense includes all stock compensation earned by our administrative personnel, while cost of sales and selling stock compensation represents all stock compensation earned by our installation and sales employees, respectively. We recognized windfall tax benefits of $1.7 million and $0.3 million for the years ended December 31, 2021 and 2019, and we recognized a tax shortfall of $0.3 million for the year ended December 31, 2020, respectively, within the income tax provision in the Consolidated Statements of Operations and Comprehensive Income. Unrecognized share-based compensation expense related to unvested awards was as follows (in thousands):
| As of December 31, 2021
| Unrecognized Compensation Expense on Unvested Awards |  | Weighted Average Remaining Vesting Period
Common Stock Awards | $ | 7,518 |  |  | 1.7
Performance-Based Stock Awards | 4,832 |  |  | 1.6
Performance-Based Restricted Stock Units | 301 |  |  | 0.3
Total unrecognized compensation expense related to unvested awards | $ | 12,651 |  |  |
Total unrecognized compensation expense is subject to future adjustments for forfeitures. This expense is expected to be recognized over the remaining weighted-average period shown above on a straight-line basis except for the Performance-Based Stock Awards which uses the graded-vesting method. Shares forfeited are returned as treasury shares and available for future issuances. During the years ended December 31, 2021, 2020 and 2019, our employees surrendered approximately 44 thousand, 25 thousand and 45 thousand shares of our common stock under all plans, respectively, to satisfy tax withholding obligations arising in connection with the vesting of common stock awards issued under our 2014 Omnibus Incentive Plan. As of December 31, 2021, approximately 1.8 million of the 3.0 million shares of common stock authorized for issuance were available for issuance under the 2014 Omnibus Incentive Plan.

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- Definition The entire disclosure for an entity's employee compensation and benefit plans, including, but not limited to, postemployment and postretirement benefit plans, defined benefit pension plans, defined contribution plans, non-qualified and supplemental benefit plans, deferred compensation, share-based compensation, life insurance, severance, health care, unemployment and other benefit plans. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 712 -URI http://asc.fasb.org/topic&trid=2197446 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 710 -URI http://asc.fasb.org/topic&trid=2127225 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -URI http://asc.fasb.org/topic&trid=2235017 + Details
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