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Treasury Stock and Share Based Awards | 3 Months Ended
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Mar. 31, 2023
Share-Based Payment Arrangement [Abstract] |
Treasury Stock and Share Based Awards | 10. Treasury Stock and Share Based Awards Treasury Stock - Holdings Treasury stock represents shares of common stock repurchased by Holdings and not yet retired. The Company has applied the cost method in recording its treasury shares. Below is a summary of Holdings’ treasury stock activity for the three months ended March 31, 2023:
|  | Number of |  |  |  |
|  | Treasury |  |  |  |
|  | Shares |  |  | Cost |
Balance at January 1, 2023 |  |  | 5.68 |  |  | $ | 95.4 |
Restricted stock withholdings (1) |  |  | 0.17 |  |  |  | 2.1 |
Restricted stock forfeitures (2) |  |  | 0.03 |  |  |  | — |
Balance at March 31, 2023 |  |  | 5.88 |  |  | $ | 97.5 |
(1) Holdings withheld shares as a result of the election by certain employees to satisfy their tax liabilities upon vesting in restricted stock and performance stock units. Holdings determined the number of shares to be withheld based upon market values of the common stock of Holdings on the vest dates, which ranged from $11.16 to $13.42 per share. (2) Holdings repurchased forfeited restricted shares at a cost of $0.001 per share in accordance with its 2017 Omnibus Plan. As of March 31, 2023, Holdings had no plans to retire any shares of treasury stock. Restricted Stock Below is a summary of restricted stock activity for the three months ended March 31, 2023:
|  | Shares of |  |  | Weighted Average |
|  | Restricted |  |  | Grant Date |
|  | Stock |  |  | Fair Value |
Outstanding at January 1, 2023 |  |  | 1.85 |  |  | $ | 20.64 |
Granted |  |  | 1.27 |  |  |  | 11.68 |
Vested |  |  | (0.56 | ) |  |  | 21.89 |
Forfeited |  |  | (0.03 | ) |  |  | 16.97 |
Outstanding at March 31, 2023 |  |  | 2.53 |  |  |  | 15.98 |
Unvested restricted stock at March 31, 2023 |  |  | 2.53 |  |  |  |
During the three months ended March 31, 2023, Holdings granted 1.27 shares of its restricted stock to certain CUSA employees. The fair value of the restricted stock granted was determined based on the closing price of Holdings' common stock on the grant dates, which ranged from $11.19 to $11.68 per share. Holdings assumed forfeiture rates for the restricted stock awards that ranged from 0% to 10%. The restricted stock granted during the three months ended March 31, 2023 vests over periods ranging from one to three years. The recipients of restricted stock are entitled to receive non-forfeitable dividends and to vote their respective shares, however, the sale and transfer of the restricted shares is prohibited during the restriction period. Below is a summary of restricted stock award activity recorded for the periods indicated.
|  | Three Months Ended March 31, |
|  | 2023 |  |  | 2022 |
Compensation expense recognized during the period: |  |  |  |  |  |
CUSA employees |  | $ | 3.6 |  |  | $ | 4.0 |
Holdings directors |  |  | 0.3 |  |  |  | 0.2 |
Total recognized by Holdings |  | $ | 3.9 |  |  | $ | 4.2 |
Fair value of restricted stock that vested during the period: |  |  |  |  |  |
CUSA employees |  | $ | 6.9 |  |  | $ | 5.6 |
Holdings directors |  |  | — |  |  |  | — |
Holdings total |  | $ | 6.9 |  |  | $ | 5.6 |
Income tax benefit related to vested restricted stock: |  |  |  |  |  |
CUSA employees |  | $ | 0.8 |  |  | $ | 0.8 |
Holdings directors |  |  | — |  |  |  | — |
Holdings total income tax benefit |  | $ | 0.8 |  |  | $ | 0.8 |
As of March 31, 2023, the estimated remaining unrecognized compensation expense related to unvested restricted stock awards was as follows:
|  | Estimated |
|  | Remaining |
|  | Expense |
CUSA employees (1) |  | $ | 29.5 |
Holdings directors |  |  | 0.5 |
Total remaining - Holdings (1) |  | $ | 30.0 |
(1) The weighted average period over which this remaining compensation expense will be recognized by both Holdings and CUSA is approximately 2.2 years. Performance Stock Units During the three months ended March 31, 2023, Holdings granted performance awards in the form of performance stock units (“PSU”), formerly referred to as restricted stock units. The maximum number of shares issuable under the performance awards is 1.5 shares of Holdings' common stock. The grant date fair value for the units issued was determined based on the closing price of Holdings' common stock on the date of grant, which was $11.68 per share. The performance metrics for these performance awards are based upon Adjusted EBITDA and consolidated cash flows, and payout levels are determined based upon the achievement of pre-established criteria for these metrics as defined in the award agreement. Based upon the terms of the award agreement, PSUs vest based on a combination of performance factors and continued service. The performance measurement period for the PSUs is three years, January 1, 2023 through December 31, 2025 and the service period ends on February 20, 2026. Below is a summary of the performance metrics and measurement period for these performance awards:
Performance Measurement Period |  | Three years with additional service requirement to the third anniversary of the date of the grant
Maximum Performance Target Level |  | 200% of target level
Percentage of maximum performance stock units that vest if performance metrics meet the threshold level (1) |  | 25% or 0.37 PSUs
Percentage of maximum performance stock units that vest if performance metrics are at target (1) |  | 50% or 0.73 PSUs
Percentage of maximum performance stock units that vest if performance metrics are at the maximum (1) |  | 100% or 1.47 PSUs
Most likely performance metrics outcome estimated to be achieved at the time performance stock units were issued |  | Target
Assumed forfeiture rate for performance stock unit awards |  | 5%
(1) Number of PSUs that vest based on maximum amount of PSUs assumed to vest of 1.47. Below is a summary of performance stock unit activity for the periods presented:
|  | Three Months Ended March 31, |
|  | 2023 |  |  | 2022 |
Number of performance stock units that vested during the period |  |  | 0.1 |  |  |  | 0.1 |
Fair value of performance stock units that vested during the period |  | $ | 1.2 |  |  | $ | 1.7 |
Accumulated dividends paid upon vesting of performance stock units |  | $ | 0.2 |  |  | $ | 0.3 |
Compensation expense recognized during the period |  | $ | 1.8 |  |  | $ | 0.9 |
Income tax benefit related to performance stock units |  | $ | — |  |  | $ | 0.3 |
As of March 31, 2023, the estimated remaining unrecognized compensation expense related to outstanding performance stock units was $19.5. The weighted average period over which this remaining compensation expense will be recognized is approximately 2.5 years. As of March 31, 2023, Holdings had performance stock units outstanding that represented a total of 1.6 hypothetical shares of common stock, net of forfeitures, reflecting actual certified performance levels for restricted stock units granted during 2020 and 2022, and the target performance level for the 2023 grant.

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