Share-based Compensation

12 Months Ended

Dec. 31, 2021

Share-based Payment Arrangement [Abstract]

Share-based Compensation

Amended and Restated Stock Incentive Plan. We award restricted share units and grant qualified incentive and nonqualified stock options to our salaried officers, non-employee directors, and other key employees from our Amended and Restated Stock Incentive Plan (the "Stock Incentive Plan"). The Stock Incentive Plan has 12,900,000 shares authorized for issuance with approximately 4,255,857 shares remaining at December 31, 2021. Our share-based compensation consists of service-based and performance-based share awards that typically vest over a period of three years from the date of grant, provided that the recipient is still our employee at the time of vesting. Our independent non-employee directors receive annual grants of service-based share awards that typically vest following 12 months of service.

Long-Term Incentive Plan. We also grant annual long-term incentive awards under our Amended and Restated Long-Term Incentive Plan (the "LTIP"). The LTIP is designed to provide senior-level employees the opportunity to earn long-term incentive awards through the achievement of performance goals and to align compensation with the interests of our stockholders. This is achieved by linking compensation to share price appreciation and total stockholder return over a multi-year period. Awards made under the LTIP are granted subject to the Stock Incentive Plan to the extent the award is deliverable in stock. We provide two types of LTIP awards: time-vested share units and performance units.

Time-vested share units are stock-settled awards which do not contain any performance-based vesting requirements. Performance units can be settled in cash or stock and vest based on the achievement of pre-determined performance metrics at the discretion of the Board. Our performance unit liability was approximately $9.1 million and $6.5

million as of December 31, 2021 and 2020, respectively. Both the performance units and time-vested share units vest, in their entirety, after three years.


Service-based share awards						Number
Outstanding at January 1, 2021						1,581,152
Granted						554,760
Vested						(531,846)
Forfeited						(144,053)
Outstanding at December 31, 2021						1,460,013

Performance-based share awards						Number
Outstanding at January 1, 2021						1,201,777
Granted						496,323
Vested						(552,121)
Forfeited						(72,351)
Outstanding at December 31, 2021						1,073,628


	Year ended December 31,
Service-based share awards	2021		2020		2019
Weighted average per share fair value of service-based share grants	$	9.97	$	7.50	$	11.34
Total intrinsic value of option exercises	—		—		39

Fair Value Measurement of Share-Based Compensation Awards. We estimate the fair value of each stock option award using the Black-Scholes model on the date of grant. Our last grant of stock options, awarded in 2009, expired in May 2019. We have not granted any stock options since 2009. For our service-based awards, fair value is equal to the closing stock price on the date of grant. For our performance-based awards, fair value is equal to the closing stock price at each reporting period end.

The following table summarizes the compensation cost recognized for the years ended December 31, 2021, 2020 and 2019 for all options, service-based and performance-based share awards. The compensation cost is included as part of selling, general and administrative expenses in our Consolidated Statements of Operations.


	Year ended December 31,
	2021		2020		2019
Share-based compensation expense reported:
Performance-based share expense	$	12.5	$	6.3	$	3.0
Service-based share expense	8.3		3.3		3.5

Total share-based compensation expense before income tax	20.8		9.6		6.5
Income tax	—		—		—
Total share-based compensation expense, net of income tax	$	20.8	$	9.6	$	6.5

No share-based compensation cost was capitalized during these periods and there were no significant modifications of any share-based awards in 2021, 2020 and 2019. As of December 31, 2021, we had unrecognized compensation cost of $15.3 million before taxes. This cost will be recognized over a weighted average period of two years.