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Shareholders' Equity | 12 Months Ended
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Dec. 31, 2021
Equity [Abstract] |
Shareholders' Equity | 9. Shareholders’ Equity Share-Based Compensation The Company’s 2021 Equity and Incentive Compensation Plan (the “2021 Plan”) was approved by the Company’s stockholders on May 25, 2021 which replaced the 2017 Equity Incentive Plan (the “2017 Plan”). No further grants will be made under the 2017 Plan, but outstanding awards under the 2017 Plan will continue to be unaffected in accordance with their terms. The 2021 Plan permits the granting of stock options with an exercise price equal to or greater than the fair market value of the Company’s common stock at the date of the grant, and other stock-based awards, including appreciation rights, restricted stock, restricted stock units, performance shares and dividend equivalents. A total of 2.6 million shares of common stock were authorized for issuance. As of December 31, 2021, 2.5 million shares remain available for future issuance. Stock options granted to employees generally vest equally over a period of four years from the date of the grant. Stock awards granted to employees generally vest over a period of three to four years from the date of the grant. On July 6, 2020, in connection with the appointment of our Chief Executive Officer, the Company granted our Chief Executive Officer approximately 94,000 restricted stock units with a fair value of $0.6 million, which are being expensed over the vesting period of four years. The Company also granted our Chief Executive Officer approximately 1.2 million stock options with a fair value of $2.4 million that are being expensed over the vesting period of four years. These grants of restricted stock units and stock options (“2020 Inducement Awards”) were approved by the Board of Directors of the Company and are not included in any of the aforementioned Plans. Share-based compensation expense for stock options and restricted stock awards under these plans was $3.3 million, $1.8 million and $2.7 million for 2021, 2020 and 2019, respectively. The tax benefit related to share based compensation expense was $0.8 million, $0.3 million and $0.4 million in 2021, 2020 and 2019, respectively. Employee Stock Purchase Plan The 2020 Employee Stock Purchase Plan (“ESPP”) was approved by shareholders on June 11, 2020. The ESPP is administered by the Compensation Committee. The ESPP allows employees to purchase shares of common stock at a 15% discount from market price and pay for the shares through payroll deductions. Eligible employees can enter the plan at specific “offering dates” that occur in six-month intervals. The aggregate maximum number of shares of the Company’s common stock that may be granted under the ESPP is 1.3 million shares over the ten-year term of the ESPP, subject to adjustment in the event there is a reorganization, merger, consolidation, recapitalization, reclassification, stock split-up, or similar transaction with respect to the common stock. As of December 31, 2021, 1.3 million shares remain available for future issuance. The Company recognized employee stock purchase plan expense of $60,000, $20,000 and $60,000 in 2021, 2020 and 2019, respectively. Stock Options The estimated weighted-average fair value of stock options granted during 2020, was $1.98 per option, using the Black-Scholes option-pricing model based on the following assumptions: Expected Volatility: The Company utilizes a volatility factor based on the Company’s historical stock prices for a period of time equal to the expected term of the stock option utilizing weekly price observations. For 2020, the Company utilized weighted-average volatility factors of 52.5%. Expected Term: Due to limited historical exercise data, the Company utilizes the simplified method of determining the expected term based on the vesting schedules and terms of the stock options. For 2020, the Company utilized weighted-average expected term factors of 5.0 years. Risk-Free Interest Rate: The risk-free interest rate factor utilized is based upon the implied yields currently available on U.S. Treasury zero-coupon issues over the expected term of the stock options. For 2020, the Company utilized a weighted-average risk-free interest rate factor of 0.3%. The fair value of stock options is recorded as compensation expense on a straight-line basis over the vesting periods (which approximates the requisite service period) of the options and we account for forfeitures when they occur. Information related to all stock options under the 2021 Plan, 2017 Plan and 2007 Plan, and the 2020 Inducement Awards for 2021, 2020 and 2019 is shown in the tables below:
(Shares in thousands) |  | Shares |  |  | Weighted Average Exercise Price |  |  | Weighted Average Remaining Contractual Term |  | Aggregate Intrinsic Value ($000) |
Outstanding at December 31, 2020 |  |  | 1,554 |  |  | $ | 11.17 |  |  | 5.8 years |  |  |
Forfeitures |  |  | (38 | ) |  |  | 10.63 |  |  |  |  |  |
Exercised |  |  | (2 | ) |  |  | 6.66 |  |  |  |  |  |
Outstanding at December 31, 2021 |  |  | 1,514 |  |  |  | 11.19 |  |  | 4.9 years |  | $ | — |
Exercisable at December 31, 2021 |  |  | 603 |  |  |  | 11.39 |  |  | 4.0 years |  | $ | — |
(Shares in thousands) |  | Shares |  |  | Weighted Average Exercise Price |  |  | Weighted Average Remaining Contractual Term |  | Aggregate Intrinsic Value ($000) |
Outstanding at December 31, 2019 |  |  | 410 |  |  | $ | 11.45 |  |  | 4.7 years |  |  |
Forfeitures |  |  | (71 | ) |  |  | 10.86 |  |  |  |  |  |
Granted |  |  | 1,215 |  |  |  | 11.06 |  |  |  |  |  |
Outstanding at December 31, 2020 |  |  | 1,554 |  |  |  | 11.17 |  |  | 5.8 years |  | $ | 195 |
Exercisable at December 31, 2020 |  |  | 330 |  |  |  | 11.66 |  |  | 3.0 years |  | $ | 6 |
(Shares in thousands) |  | Shares |  |  | Weighted Average Exercise Price |  |  | Weighted Average Remaining Contractual Term |  | Aggregate Intrinsic Value ($000) |
Outstanding at December 31, 2018 |  |  | 507 |  |  | $ | 10.43 |  |  | 5.2 years |  |  |
Forfeitures |  |  | (31 | ) |  |  | 6.84 |  |  |  |  |  |
Exercised |  |  | (66 | ) |  |  | 4.10 |  |  |  |  |  |
Outstanding at December 31, 2019 |  |  | 410 |  |  |  | 11.45 |  |  | 4.7 years |  | $ | 32 |
Exercisable at December 31, 2019 |  |  | 355 |  |  |  | 12.08 |  |  | 4.6 years |  | $ | 29 |
Restricted Stock Awards Information related to restricted stock awards under the 2021 Plan, 2017 Plan, 2007 Plan, and the 2020 Inducement Awards for 2021, 2020 and 2019 is shown in the table below. The fair value of restricted stock awards is based on the price of the stock in the open market on the date of the grant, and the fair value of performance-based restricted stock units is determined by using the Monte Carlo valuation model. The fair value of the restricted stock awards is recorded as compensation expense on a straight-line basis over the vesting periods of the awards and we account for forfeitures when they occur.
(Shares in thousands) |  | Shares |  |  | Weighted Average Grant Date Fair Value |
Nonvested at December 31, 2018 |  |  | 1,251 |  |  | $ | 6.30 |
Granted |  |  | 464 |  |  |  | 7.50 |
Vested |  |  | (310 | ) |  |  | 7.24 |
Forfeited |  |  | (84 | ) |  |  | 6.36 |
Nonvested at December 31, 2019 |  |  | 1,321 |  |  |  | 6.80 |
Granted |  |  | 648 |  |  |  | 5.64 |
Vested |  |  | (284 | ) |  |  | 7.60 |
Forfeited |  |  | (638 | ) |  |  | 5.91 |
Nonvested at December 31, 2020 |  |  | 1,047 |  |  |  | 6.00 |
Granted |  |  | 573 |  |  |  | 8.19 |
Vested |  |  | (323 | ) |  |  | 6.31 |
Forfeited |  |  | (264 | ) |  |  | 5.80 |
Nonvested at December 31, 2021 |  |  | 1,033 |  |  | $ | 7.17 |
The Company received zero, zero and $7,000 of cash from employees exercising options in 2021, 2020 and 2019, respectively. The Company received approximately $13,000 from a non-employee director exercising options during 2021. The intrinsic value of options exercised during 2021, 2020 and 2019 was $3,000, zero and $0.3 million, respectively. Unrecognized compensation expense related to nonvested shares of stock options, restricted stock and performance units was $6.7 million at December 31, 2021 and will be recognized over a weighted average vesting period of 2.3 years. Common Stock Repurchase On August 3, 2021, the Company's Board of Directors authorized a share repurchase program under which CECO may purchase up to $5.0 million of its outstanding shares of Company stock. The authorization permitted the Company to repurchase shares in the open market, through accelerated share repurchases, block trades, 10b5-1 plans or through privately negotiated transactions in accordance with applicable laws, rules and regulations. The Company completed its purchases authorized under the plan in October 2021, repurchasing 698,693 shares at an average price of $7.16. All treasury shares were retired following the repurchase. Dividends Our dividend policy and the payment of cash dividends under that policy are subject to the Board of Director’s continuing determination that the dividend policy and the declaration of dividends are in the best interest of the Company’s stockholders. Future dividends and the dividend policy may be changed at the Company’s discretion at any time. Payment of dividends is also subject to the continuing compliance with our financial covenants under our Credit Facility. We have not paid a cash dividend on our common stock in any of the years ended December 31, 2021, 2020 or 2019 and currently intend to retain future earnings, if any, to finance the operations, growth and development of our business in the foreseeable future.

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- Definition The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 13 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496158-112644 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 13 -URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496158-112644 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 14 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496171-112644 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 14 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496171-112644 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.3-04) -URI http://asc.fasb.org/extlink&oid=120397183&loc=d3e187085-122770 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 18 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496189-112644 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 13 -Subparagraph (g) -URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496158-112644 Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -URI http://asc.fasb.org/topic&trid=2208762 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 18 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496189-112644 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 13 -Subparagraph (h) -URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496158-112644 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 14 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496171-112644 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 18 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496189-112644 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 16 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496180-112644 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 13 -Subparagraph (i) -URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496158-112644 Reference 15: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(e)(1)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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