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Stock-Based Compensation Plans | 9 Months Ended
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Sep. 30, 2024
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, 2024 and 2023, totaled 71,181 and 101,565, 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, 2023 | 873,512 |  |  | $ | 18.76 |  |  |  |  |
Exercised | (104,951) |  |  | 18.62 |  |  |  |  |
Outstanding as of September 30, 2024 | 768,561 |  |  | $ | 18.78 |  |  | 1.31 |  | $ | 24,689,894 |
Exercisable as of September 30, 2024 | 768,561 |  |  | $ | 18.78 |  |  | 1.31 |  | $ | 24,689,894 |
The total intrinsic value of stock options exercised during the nine months ended September 30, 2024 and 2023, was $2.4 million and $0.9 million, respectively. There were no stock options granted during the nine months ended September 30, 2024 or 2023. Performance Share Awards During the nine months ended September 30, 2024, pursuant to the Company's 2020 Equity and Incentive Compensation Plan, the Company granted performance share awards with a total shareholder return component ("TSRs"). These performance share awards are earned, if at all, based upon achievement, over a specified period that must not be less than one year and is typically a three-year performance period. The awards have operating performance goals that include (i) adjusted EBITDA metrics and (ii) revenue growth rates 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 TSRs is as follows:
| Number of Shares |  | Weighted Average Grant Date Fair Value
Nonvested as of December 31, 2023 | 673,126 |  |  | $ | 40.73 |
Granted | 561,471 |  |  | 34.00 |
Forfeited | (70,496) |  |  | 33.71 |
Change in payout rate | (203,945) |  |  | 50.60 |
Nonvested as of September 30, 2024 | 960,156 |  |  | $ | 35.22 |
In the first quarter of 2024, the TSRs granted in 2021 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, 2024 and 2023, 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,
| 2024 |  | 2023
Expected life (years) | 2.7 |  | 2.9
Risk-free interest rate | 4.4 | % |  | 3.6 | %
Expected volatility | 36.8 | % |  | 37.1 | %
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, 2023 | 1,574,883 |  |  | $ | 26.81 |
Granted | 1,342,737 |  |  | 32.36 |
Vested | (815,772) |  |  | 28.71 |
Forfeited | (147,618) |  |  | 28.29 |
Nonvested as of September 30, 2024 | 1,954,230 |  |  | $ | 29.72 |
During the nine months ended September 30, 2024, a total of 815,772 RSUs vested. The Company withheld 252,290 of those shares to pay the employees’ portion of the minimum payroll withholding taxes. As of September 30, 2024, there was unrecognized compensation expense of $50.7 million related to RSUs and $22.8 million related to TSRs, which the Company expects to recognize over a weighted average period 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, 2024 and 2023, of $11.3 million and $6.8 million, respectively, with corresponding tax benefits of $1.9 million and $1.2 million, respectively. The Company recorded stock-based compensation expense recognized under ASC 718 for the nine months ended September 30, 2024 and 2023, of $30.2 million and $17.5 million, respectively, with corresponding tax benefits of $5.0 million and $3.2 million, respectively.

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