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Equity-Based Compensation | 12 Months Ended
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Dec. 31, 2022
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] |
Equity-Based Compensation | 16. Equity-Based Compensation Equity Incentive Plans The Company issues stock-based awards, including stock options, restricted stock and restricted stock units, to certain officers, employees and non-employee directors under the Acadia Healthcare Company, Inc. Incentive Compensation Plan (the “Equity Incentive Plan”). At December 31, 2022, a maximum of 12,700,000 shares of the Company’s common stock were authorized for issuance as stock options, restricted stock and restricted stock units or other share-based compensation under the Equity Incentive Plan, of which 3,133,811 were available for future grant. Stock options may be granted for terms of up to ten years. The Company recognizes expense on all share-based awards on a straight-line basis over the requisite service period of the entire award. Grants to employees generally vest in annual increments of 25% each year, commencing one year after the date of grant. The exercise prices of stock options are equal to the closing price of the Company’s common stock on the most recent trading date prior to the date of grant. The Company recognized $29.6 million, $37.5 million and $22.5 million in equity-based compensation expense for the years ended December 31, 2022, 2021 and 2020, respectively. Stock compensation expense for the years ended December 31, 2022, 2021 and 2020 is impacted by forfeiture adjustments and restricted stock unit adjustments based on actual performance compared to vesting targets. At December 31, 2022, there was $61.9 million of unrecognized compensation expense related to unvested options, restricted stock and restricted stock units, which is expected to be recognized over the remaining weighted average vesting period of 1.4 years. At December 31, 2022, there were no warrants outstanding. The Company recognized a deferred income tax benefit of $8.0 million, $9.6 million and $5.5 million for the years ended December 31, 2022, 2021 and 2020, respectively, related to equity-based compensation expense. Stock Options Stock option activity during 2020, 2021 and 2022 was as follows (aggregate intrinsic value in thousands):
|  | Number of Options |  |  | Weighted Average Exercise Price |  |  | Weighted Average Remaining Contractual Term (in years) |  |  | Aggregate Intrinsic Value |
Options outstanding at January 1, 2020 |  |  | 1,360,068 |  |  | $ | 39.40 |  |  |  |  |  |  |  |  |
Options granted |  |  | 507,600 |  |  |  | 33.13 |  |  |  |  |  |  |  |  |
Options exercised |  |  | (68,700 | ) |  |  | 29.15 |  |  |  |  |  |  |  |  |
Options cancelled |  |  | (288,662 | ) |  |  | 39.67 |  |  |  |  |  |  |  |  |
Options outstanding at December 31, 2020 |  |  | 1,510,306 |  |  |  | 37.56 |  |  |  |  |  |  |  |  |
Options granted |  |  | 324,320 |  |  |  | 57.53 |  |  |  |  |  |  |  |  |
Options exercised |  |  | (558,322 | ) |  |  | 39.45 |  |  |  |  |  |  |  |  |
Options cancelled |  |  | (170,235 | ) |  |  | 40.08 |  |  |  |  |  |  |  |  |
Options outstanding at December 31, 2021 |  |  | 1,106,069 |  |  |  | 42.07 |  |  |  |  |  |  |  |  |
Options granted |  |  | 334,260 |  |  |  | 55.73 |  |  |  |  |  |  |  |  |
Options exercised |  |  | (285,577 | ) |  |  | 40.66 |  |  |  |  |  |  |  |  |
Options cancelled |  |  | (175,475 | ) |  |  | 46.98 |  |  |  |  |  |  |  |  |
Options outstanding at December 31, 2022 |  |  | 979,277 |  |  | $ | 46.27 |  |  |  | 7.44 |  |  | $ | 35,303 |
Options exercisable at December 31, 2022 |  |  | 301,827 |  |  | $ | 41.43 |  |  |  | 5.69 |  |  | $ | 12,341 |
Fair values are estimated using the Black-Scholes option pricing model. The following table summarizes the grant-date fair value of options and the assumptions used to develop the fair value estimates for options granted during the years ended December 31, 2022, 2021 and 2020:
|  | Year Ended December 31, |
|  | 2022 |  |  | 2021 |  |  | 2020 |
Weighted average grant-date fair value of options |  | $ | 20.72 |  |  | $ | 20.64 |  |  | $ | 12.37 |
Risk-free interest rate |  |  | 2.0 | % |  |  | 0.9 | % |  |  | 1.6 | %
Expected volatility |  |  | 39 | % |  |  | 40 | % |  |  | 41 | %
Expected life (in years) |  |  | 5.0 |  |  |  | 5.0 |  |  |  | 5.0 |
The Company’s estimate of expected volatility for stock options is based upon the volatility of its stock price over the expected life of the award. The risk-free interest rate is the approximate yield on U. S. Treasury Strips having a life equal to the expected option life on the date of grant. The expected life is an estimate of the number of years an option will be held before it is exercised. Other Stock-Based Awards Restricted stock activity during 2020, 2021 and 2022 was as follows:
|  | Number of Shares |  |  | Weighted Average Grant-Date Fair Value |
Unvested at January 1, 2020 |  |  | 805,136 |  |  | $ | 34.14 |
Granted |  |  | 637,312 |  |  |  | 25.82 |
Cancelled |  |  | (129,683 | ) |  |  | 34.56 |
Vested |  |  | (289,769 | ) |  |  | 35.88 |
Unvested at December 31, 2020 |  |  | 1,022,996 |  |  | $ | 28.41 |
Granted |  |  | 352,430 |  |  |  | 58.32 |
Cancelled |  |  | (82,751 | ) |  |  | 39.63 |
Vested |  |  | (366,048 | ) |  |  | 30.81 |
Unvested at December 31, 2021 |  |  | 926,627 |  |  | $ | 37.84 |
Granted |  |  | 650,396 |  |  |  | 64.65 |
Cancelled |  |  | (145,205 | ) |  |  | 49.03 |
Vested |  |  | (386,616 | ) |  |  | 32.64 |
Unvested at December 31, 2022 |  |  | 1,045,202 |  |  | $ | 54.89 |
Restricted stock unit activity during 2020, 2021 and 2022 was as follows:
|  | Number of Units |  |  | Weighted Average Grant-Date Fair Value |
Unvested at January 1, 2020 |  |  | 447,357 |  |  | $ | 38.89 |
Granted |  |  | 583,680 |  |  |  | 10.60 |
Performance adjustment |  |  | 117,772 |  |  |  | 13.50 |
Cancelled |  |  | (63,056 | ) |  |  | 43.35 |
Vested |  |  | (12,691 | ) |  |  | 42.09 |
Unvested at December 31, 2020 |  |  | 1,073,062 |  |  | $ | 20.15 |
Granted |  |  | 149,416 |  |  |  | 61.52 |
Performance adjustment |  |  | 465,993 |  |  |  | 25.49 |
Cancelled |  |  | — |  |  |  | — |
Vested |  |  | (184,051 | ) |  |  | 42.30 |
Unvested at December 31, 2021 |  |  | 1,504,420 |  |  | $ | 23.20 |
Granted |  |  | 105,311 |  |  |  | 73.96 |
Performance adjustment |  |  | 182,543 |  |  |  | 33.05 |
Cancelled |  |  | — |  |  |  | — |
Vested |  |  | (518,474 | ) |  |  | 43.16 |
Unvested at December 31, 2022 |  |  | 1,273,800 |  |  | $ | 20.69 |
Restricted stock awards are time-based vesting awards that vest over a period of three or four years and are subject to continuing service of the employee or non-employee director over the ratable vesting periods. The fair values of the restricted stock awards were determined based on the closing price of the Company’s common stock on the trading date immediately prior to the grant date. Restricted stock units are granted to employees and are subject to Company performance compared to pre-established targets. In addition to Company performance, these performance-based restricted stock units are subject to the continuing service of the employee during the three-year period covered by the awards. The performance condition for the restricted stock units is based on the Company’s achievement of annually established targets for diluted earnings per share. The number of shares issuable at the end of the applicable vesting period of restricted stock units ranges from 0% to 200% of the targeted units based on the Company’s actual performance compared to the targets. The fair values of restricted stock units were determined based on the closing price of the Company’s common stock on the trading date immediately prior to the grant date for units subject to performance conditions.

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