XML 32 R22.htm IDEA: XBRL DOCUMENT
v3.22.2

Employee Benefits | 6 Months Ended
--- | ---
Jun. 30, 2022
Postemployment 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 $7.3 million and $6.8 million for the three months ended June 30, 2022 and 2021, respectively and $16.2 million and $14.1 million for the six months ended June 30, 2022 and 2021. An accrual for estimated healthcare claims incurred but not reported (“IBNR”) is included within accrued compensation on the Condensed Consolidated Balance Sheets and was $3.7 million and $3.3 million as of June 30, 2022 and December 31, 2021, respectively. Workers’ Compensation Workers’ compensation expense totaled $2.9 million for both the three months ended June 30, 2022 and 2021, respectively and $8.6 million and $7.1 million six months ended June 30, 2022 and 2021. Workers’ compensation known claims and IBNR reserves included on the Condensed Consolidated Balance Sheets were as follows (in thousands):
| June 30, 2022 |  | December 31, 2021
Included in other current liabilities | $ | 8,271 |  |  | $ | 8,048 |
Included in other long-term liabilities | 13,573 |  |  | 13,397 |
| $ | 21,844 |  |  | $ | 21,445 |
We also had an insurance receivable for claims that exceeded the stop loss limit under our self-insured policies as well as claims under our fully insured policies included on the Condensed Consolidated Balance Sheets. This receivable offsets an equal liability included within the reserve amounts noted above and was as follows (in thousands):
| June 30, 2022 |  | December 31, 2021
Included in other non-current assets | $ | 2,131 |  |  | $ | 2,137 |
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. We recognized 401(k) plan expenses of $0.8 million and $0.7 million during the three months ended June 30, 2022 and 2021, respectively and $1.6 million and $1.4 million during the six months ended June 30, 2022 and 2021. These expenses are included in administrative expenses on the accompanying Condensed 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. Share-Based Compensation Common Stock Awards We periodically grant shares of our common stock to non-employee members of our board of directors and our employees. We granted approximately five thousand and four thousand during the three and six months ended June 30, 2022 and 2021, under our our 2014 Omnibus Incentive Plan to non-employee members of our board of directors. In addition, we granted approximately 63 thousand and 39 thousand shares of our common stock to employees during the three and six months ended June 30, 2022 and 2021, respectively. Employees – Performance-Based Stock Awards During the six months ended June 30, 2022, we issued approximately 41 thousand shares of our common stock to certain officers, which vest in two equal installments on each of April 20, 2023 and April 20, 2024. In addition, during the six months ended June 30, 2022, we established, and our board of directors approved, performance-based targets in connection with common stock awards to be issued to certain officers in 2023 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 2024 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 in the first quarter of 2025 and as such are included in other long-term liabilities on the Condensed Consolidated Balance Sheets. During the six months ended June 30, 2022 and 2021, we granted approximately 39 thousand and five thousand shares of our common stock, respectively, which both vested in the second quarter of 2022. Employees – Performance-Based Restricted Stock Units During 2021, 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 2022 based upon achievement of a performance target. In addition, during the six months ended June 30, 2022, 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 2023 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. 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, 2021 | 199,353 |  |  | $ | 68.99 |  |  | 143,401 |  |  | $ | 81.30 |  |  | 8,252 |  |  | $ | 126.89 |
Granted | 108,219 |  |  | 89.33 |  |  | 54,585 |  |  | 102.98 |  |  | 16,618 |  |  | 80.55 |
Vested | (146,834) |  |  | 74.72 |  |  | (71,933) |  |  | 59.07 |  |  | (8,061) |  |  | 126.89 |
Forfeited/Cancelled | (554) |  |  | 78.13 |  |  | — |  |  | — |  |  | (239) |  |  | 117.58 |
Nonvested awards/units at June 30, 2022 | 160,184 |  |  | $ | 77.45 |  |  | 126,053 |  |  | $ | 103.37 |  |  | 16,570 |  |  | $ | 80.55 |
The following table summarizes the share-based compensation expense recognized under our 2014 Omnibus Incentive Plan (in thousands):
| Three months ended June 30, |  | Six months ended June 30,
| 2022 |  | 2021 |  | 2022 |  | 2021
Common Stock Awards | $ | 1,767 |  |  | $ | 1,296 |  |  | $ | 3,298 |  |  | $ | 2,417 |
Non-Employee Common Stock Awards | 125 |  |  | 111 |  |  | 249 |  |  | 213 |
Performance-Based Stock Awards | 1,311 |  |  | 1,187 |  |  | 2,626 |  |  | 2,334 |
Liability Performance-Based Stock Awards | 128 |  |  | 680 |  |  | 334 |  |  | 1,385 |
Performance-Based Restricted Stock Units | 329 |  |  | 224 |  |  | 571 |  |  | 344 |
| $ | 3,660 |  |  | $ | 3,498 |  |  | $ | 7,078 |  |  | $ | 6,693 |
We recorded the following stock compensation expense by income statement category (in thousands):
| Three months ended June 30, |  | Six months ended June 30,
| 2022 |  | 2021 |  | 2022 |  | 2021
Cost of sales | $ | 171 |  |  | $ | 63 |  |  | $ | 319 |  |  | $ | 126 |
Selling | 141 |  |  | 38 |  |  | 203 |  |  | 89 |
Administrative | 3,348 |  |  | 3,397 |  |  | 6,556 |  |  | 6,478 |
| $ | 3,660 |  |  | $ | 3,498 |  |  | $ | 7,078 |  |  | $ | 6,693 |
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. Unrecognized share-based compensation expense related to unvested awards was as follows (in thousands):
| As of June 30, 2022
| Unrecognized Compensation Expense on Unvested Awards |  | Weighted Average Remaining Vesting Period
Common Stock Awards | $ | 9,395 |  |  | 2.0
Performance-Based Stock Awards | 7,828 |  |  | 1.9
Performance-Based Restricted Stock Units | 1,000 |  |  | 0.8
Total unrecognized compensation expense related to unvested awards | $ | 18,223 |  |  |
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 three and six months ended June 30, 2022 and 2021, our employees surrendered approximately 52 thousand and 43 thousand shares of our common stock, respectively, to satisfy tax withholding obligations arising in connection with the vesting of common stock awards issued under our 2014 Omnibus Incentive Plan. We recognized windfall tax benefits of $0.3 million and $3.0 million for the three and six months ended June 30, 2022 and 2021, respectively, within the income tax provision in the Condensed Consolidated Statements of Operations and Comprehensive Income. As of June 30, 2022, approximately 1.7 million of the 3.0 million shares of common stock authorized for issuance were available for issuance under the 2014 Omnibus Incentive Plan.

X
- 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 https://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 https://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 https://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 https://asc.fasb.org/topic&trid=2235017 + Details
Name: | us-gaap_CompensationAndEmployeeBenefitPlansTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_PostemploymentBenefitsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration