XML 43 R24.htm IDEA: XBRL DOCUMENT
v3.24.0.1

Stock-Based Compensation and Other Employee Benefits | 12 Months Ended
--- | ---
Dec. 31, 2023
Share-Based Payment Arrangement [Abstract] |
Stock-Based Compensation and Other Employee Benefits | STOCK-BASED COMPENSATION AND OTHER EMPLOYEE BENEFITS Our 2020 Stock Incentive Plan (the “2020 Plan”), was adopted by our Board of Directors in February 2020 and approved by our stockholders in May 2020. The 2020 Plan provides for the grant of incentive stock options, non-statutory stock options, stock appreciation rights, RSUs, and other stock-based awards. As of December 31, 2023, there were 1,991 shares available for grant under the 2020 Plan. Stock Options We did not grant awards to individuals who were not either an employee or director of ours during the years ended December 31, 2023, 2022, and 2021. The following table summarizes the collective activity under the plan:
| Number of Options |  | Weighted-Average Exercise Price |  | Weighted-Average Remaining Contractual Term |  | Aggregate Intrinsic Value
Outstanding at December 31, 2022 | 4,533 |  |  | 45.799 |  |  |  |  |
Granted | 170 |  |  | 41.871 |  |  |  |  |
Exercised | (246) |  |  | 9.900 |  |  |  |  |
Forfeited | (193) |  |  | 62.365 |  |  |  |  |
Expired | (9) |  |  | 63.311 |  |  |  |  |
Outstanding at December 31, 2023 | 4,255 |  |  | $ | 46.932 |  |  | 6.6 years |  | $ | 27,539 |
Options exercisable at December 31, 2023 | 1,867 |  |  | $ | 25.241 |  |  | 5.3 years |  | $ | 25,775 |
Expected to vest at December 31, 2023 | 2,387 |  |  | $ | 63.900 |  |  | 7.6 years |  | $ | 1,764 |
The following table sets forth additional disclosures about our plan:
| Year Ended December 31,
| 2023 |  | 2022 |  | 2021
Aggregate intrinsic value of options exercised | $ | 8,511 |  |  | $ | 9,775 |  |  | $ | 33,494 |
Cash received from stock option exercises | $ | 2,438 |  |  | $ | 3,954 |  |  | $ | 5,563 |
Weighted-average fair value of stock options granted | $ | 23.99 |  |  | $ | 37.87 |  |  | $ | 28.94 |
Stock-based compensation expense (1) | $ | 10,318 |  |  | $ | 15,046 |  |  | $ | 8,716 |
Income tax benefit from stock-based compensation expense | $ | 1,102 |  |  | $ | 659 |  |  | $ | 4,932 |
(1) Included in selling, general, and administrative expenses in the accompanying consolidated statements of income and includes expense in connection with our ESPP and RSUs.
Under the terms of our 2020 Plan, all options expire if not exercised within ten years after the grant date. We typically award options that vest over a five-year period on an annual ratable basis. From time to time, we award options providing for vesting over three years, with one-third vesting on each of the first three anniversaries of the grant date. If the employee ceases to be employed by us for any reason before vested options have been exercised, the employee has 90 days to exercise options that have vested as of the date of such employee’s termination, or they are forfeited. We use the Black-Scholes option pricing model to determine the weighted-average fair value of options granted. We recognize the compensation cost of stock-based awards on a straight-line basis over the requisite service period of the award. The determination of the fair value of stock-based payment awards utilizing the Black-Scholes model is affected by the stock price and a number of assumptions, including expected volatility, expected life, risk-free interest rate and expected dividends. The following table sets forth the significant assumptions used in the model:
| Year Ended December 31,
| 2023 |  | 2022 |  | 2021
Expected dividend yield | —% |  | —% |  | —%
Risk-free interest rate | 3.35% -4.44% |  | 1.69%-3.82% |  | 0.92%-1.46%
Expected volatility | 54%-56% |  | 51%-53% |  | 48%-50%
Expected life | 6.5 years |  | 6.5 years |  | 6.5 years
We will continue to use judgment in evaluating the expected term and volatility related to stock-based compensation on a prospective basis and incorporate these factors into the Black-Scholes pricing model. We record forfeitures as they occur. Higher volatility and longer expected lives result in an increase to stock-based compensation expense determined at the date of grant. As of December 31, 2023, there was approximately $30,075 of unrecognized compensation expense related to non-vested stock option awards and RSUs that is expected to be recognized over a weighted-average period of 2.0 years. Restricted Stock Units During the year ended December 31, 2023, we granted awards of RSUs to our employees and non-employee directors under our 2020 Plan. These RSUs represent a promise to deliver shares to participants at a future date after certain vesting conditions are met. RSUs do not have the voting rights of common stock and the shares underlying RSUs are not considered issued and outstanding upon grant. The fair value of RSUs is based on the closing stock price of our common stock on the grant-date and expensed over the requisite service period of the award. The following table summarizes the activity under the plan:
| Number of Options |  | Weighted-Average Grant Date Fair Value Per Share |
Outstanding at December 31, 2022 | 13 |  |  | $ | 52.94 |  |
Granted | 66 |  |  | 45.33 |  |
Vested | (23) |  |  | 47.83 |  |
Forfeited | (4) |  |  | 48.39 |  |
Outstanding at December 31, 2023 | 52 |  |  | $ | 45.90 |  |
Total stock-based compensation expense for the year ended December 31, 2023 related to RSUs was $1,690. As of December 31, 2023, 23 of the RSUs were vested and there was $1,604 of unrecognized compensation expense related to RSUs that is expected to be recognized over a period of approximately one year. Employee Stock Purchase Plan Our 2017 Employee Stock Purchase Plan permits eligible employees to purchase up to an aggregate of 200 shares of the Company’s Class A common stock. In May 2020, we amended our ESPP, which permits eligible employees to purchase up to an aggregate of 350 shares of our Class A common stock. This plan commenced December 1, 2017 and was subsequently amended in August 2018. The ESPP allows participants to purchase shares of common stock at a 5% discount from the fair market value of the stock as determined on specific dates at six-month intervals. During the years ended December 31, 2023 and 2022, we issued 60 and 36 shares, respectively, under the ESPP. As of December 31, 2023 and 2022, the amount that had been withheld from employees for future purchases under the ESPP was $182 and $179, respectively. Other Employee Benefits We maintain a qualified 401(k) plan covering eligible U.S. employees who have completed the minimum service requirement, as defined by the plans. The plans require us to contribute 100% of the first six percent of base compensation that a participant contributes to the plans. In 2016, we established a Group Personal Pension Plan for employees in the United Kingdom, for eligible employees who may contribute a portion of their compensation, subject to their age and other limitations established by HM Revenue & Customs. The plan requires us to contribute 100% of the first six percent of base compensation that a participant contributes to the plans. We also have a Registered Retirement Savings Plan for employees in Canada, for eligible employees who may contribute a portion of their compensation. The plan requires us to contribute 100% of the first six percent of base compensation that a participant contributes to the plans. The following table sets forth our matching contributions under the plans:
| Year Ended December 31,
| 2023 |  | 2022 |  | 2021
401(k) plan | $ | 7,561 |  |  | $ | 6,974 |  |  | $ | 6,189 |
Group Personal Pension Plan | 652 |  |  | 290 |  |  | 252 |
Registered Retirement Savings Plan | 429 |  |  | 406 |  |  | 405 |
Total matching contributions | $ | 8,642 |  |  | $ | 7,670 |  |  | $ | 6,846 |

X
- Definition The entire disclosure for an entity's employee compensation and benefit plans, including, but not limited to, postemployment and postretirement benefit plans, defined benefit pension plans, defined contribution plans, non-qualified and supplemental benefit plans, deferred compensation, share-based compensation, life insurance, severance, health care, unemployment and other benefit plans. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 710 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//710/tableOfContent Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 712 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//712/tableOfContent Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 715 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//715/tableOfContent Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 718 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//718/tableOfContent + Details
Name: | us-gaap_CompensationAndEmployeeBenefitPlansTextBlock
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