XML 24 R14.htm IDEA: XBRL DOCUMENT
v3.23.3

Stock-Based Compensation Plans | 9 Months Ended
--- | ---
Sep. 30, 2023
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, 2023 and 2022, totaled 101,565 and 108,149, 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, 2022 | 1,221,219 |  |  | $ | 19.00 |  |  |  |  |
Exercised | (164,092) |  |  | 19.09 |  |  |  |  |
Expired | (4,614) |  |  | 19.63 |  |  |  |  |
Outstanding as of September 30, 2023 | 1,052,513 |  |  | $ | 18.98 |  |  | 1.90 |  | $ | 8,419,789 |
Exercisable as of September 30, 2023 | 1,052,513 |  |  | $ | 18.98 |  |  | 1.90 |  | $ | 8,419,789 |
The total intrinsic value of stock options exercised during the nine months ended September 30, 2023 and 2022, was $0.9 million and $1.1 million, respectively. There were no stock options granted during the nine months ended September 30, 2023 or 2022. Performance Share Awards During the nine months ended September 30, 2023, pursuant to the Company's 2020 Equity and Incentive Compensation Plan, the Company granted performance share awards with a total shareholder return multiplier. These performance awards are earned based upon achievement, over a specified period that must not be less than one year and is typically a three-year performance period, of performance goals related to (i) net revenue growth and (ii) net adjusted EBITDA margin over the performance period as determined by the Company with a TSR multiplier up to plus or minus 20%. Up to 200% of the performance shares could be earned upon achievement of the performance goals, including the multiplier. On a quarterly basis, management evaluates the probability that the threshold performance goals will be achieved, if at all, and the anticipated level of attainment to determine the amount of compensation expense to record in the consolidated financial statements. 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, 2022 | 1,011,881 |  |  | $ | 39.21 |
Granted | 233,404 |  |  | 26.94 |
Forfeited | (135,452) |  |  | 40.06 |
Change in payout rate | (427,685) |  |  | 30.01 |
Nonvested as of September 30, 2023 | 682,148 |  |  | $ | 40.62 |
In the first quarter of 2023, the TSRs granted in 2020 were earned by the employees. However, the performance goals were not met and no shares were issued. The fair value of TSRs granted during the nine months ended September 30, 2023 and 2022, 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,
| 2023 |  | 2022
Expected life (years) | 2.9 |  | 3.1
Risk-free interest rate | 3.6 | % |  | 1.5 | %
Expected volatility | 37.1 | % |  | 40.0 | %
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, 2022 | 1,184,024 |  |  | $ | 30.73 |
Granted | 1,457,471 |  |  | 24.75 |
Vested | (553,490) |  |  | 29.04 |
Forfeited | (433,528) |  |  | 28.34 |
Nonvested as of September 30, 2023 | 1,654,477 |  |  | $ | 26.66 |
During the nine months ended September 30, 2023, a total of 553,490 RSUs vested. The Company withheld 165,440 of those shares to pay the employees’ portion of the minimum payroll withholding taxes. As of September 30, 2023, there were unrecognized compensation costs of $36.4 million and $10.0 million related to nonvested RSUs and TSRs, respectively, which the Company expects to recognize over weighted average periods of 2.3 years and 1.8 years, respectively. The Company recorded stock-based compensation expense recognized under ASC 718 for the three months ended September 30, 2023 and 2022, of $6.8 million and $7.1 million, respectively, with corresponding tax benefits of $1.2 million and $1.0 million, respectively. The Company recorded stock-based compensation expense recognized under ASC 718 for the nine months ended September 30, 2023 and 2022, of $17.5 million and $21.9 million, respectively, with corresponding tax benefits of $3.2 million and $3.0 million, respectively.

X
- Definition The entire disclosure for share-based payment arrangement. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a)(1) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480429/718-10-50-2 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//718/tableOfContent Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480429/718-10-50-2 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (h)(2) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480429/718-10-50-2 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (h)(2)(i) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480429/718-10-50-2 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (l) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480429/718-10-50-2 + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

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