XML 24 R14.htm IDEA: XBRL DOCUMENT v3.22.2.2
Stock-Based Compensation Plans
 9 Months Ended
Sep. 30, 2022
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation Plans Stock-Based Compensation Plans
Employee Stock Purchase Plan
Shares issued under the 2017 Employee Stock Purchase Plan during the nine months ended September 30, 2022 and 2021, totaled 108,149 and 86,877, respectively.

Stock Options
A summary of stock option activity is as follows:
Number of
Shares		Weighted Average
Exercise Price ($)		Weighted Average
Remaining Contractual
Term (Years)		Aggregate Intrinsic Value
of In-the-Money
Options ($)
Outstanding as of December 31, 20211,640,319 $18.42 
Exercised(98,723)18.14 
Outstanding as of September 30, 20221,541,596 $18.44 2.37$3,796,359 
Exercisable as of September 30, 20221,541,596 $18.44 2.37$3,796,359 

The total intrinsic value of stock options exercised during the nine months ended September 30, 2022 and 2021, was $1.1 million and $7.8 million, respectively. There were no stock options granted during the nine months ended September 30, 2022 or 2021.

Total Shareholder Return Awards
A summary of nonvested total shareholder return awards ("TSRs") is as follows:
Number of
Shares		Weighted Average
Grant Date Fair Value
Nonvested as of December 31, 20211,154,721 $40.10 
Granted520,020 42.99 
Vested(212,210)45.86 
Forfeited(193,979)39.93 
Change in payout rate(114,355)45.92 
Nonvested as of September 30, 20221,154,197 $39.79 

During the nine months ended September 30, 2022, a total of 212,210 TSRs granted in fiscal 2019 vested and achieved a payout rate of 65% based on the Company's total shareholder return as compared to a group of peer companies over a three-year performance period. The Company withheld 47,612 of those shares to pay the employees’ portion of the minimum payroll withholding taxes.

The fair value of TSRs granted during the nine months ended September 30, 2022 and 2021, were estimated on the date of grant using the Monte Carlo simulation model, acceptable under ASC 718, Compensation - Stock Compensation, using the following weighted average assumptions:
Nine Months Ended
September 30,
20222021
Expected life (years)3.12.8
Risk-free interest rate1.5 %0.3 %
Expected volatility40.0 %41.2 %
Expected dividend yield— — 
Restricted Share Units
A summary of nonvested restricted share unit awards ("RSUs") is as follows:
Number of
Shares		Weighted Average
Grant Date Fair Value
Nonvested as of December 31, 2021946,151 $33.57 
Granted1,071,776 29.97 
Vested(442,882)33.00 
Forfeited(193,932)32.63 
Nonvested as of September 30, 20221,381,113 $31.09 

During the nine months ended September 30, 2022, a total of 442,882 RSUs vested. The Company withheld 132,707 of those shares to pay the employees’ portion of the minimum payroll withholding taxes.

As of September 30, 2022, there were unrecognized compensation costs of $33.0 million and $23.4 million related to nonvested RSUs and TSRs, respectively, which the Company expects to recognize over weighted average periods of 2.1 years and 2.0 years, respectively.
The Company recorded stock-based compensation expense recognized under ASC 718 for the three months ended September 30, 2022 and 2021, of $7.1 million and $6.4 million, respectively, with corresponding tax benefits of $1.0 million and $0.9 million, respectively. The Company recorded stock-based compensation expense recognized under ASC 718 for the nine months ended September 30, 2022 and 2021, of $21.9 million and $20.8 million, respectively, with corresponding tax benefits of $3.0 million and $3.1 million, respectively.