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Stock-Based Compensation (Notes) | 12 Months Ended
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Dec. 31, 2022
Stock-Based Compensation [Abstract] |
Stock-Based Compensation | Stock-Based Compensation We maintain long-term incentive plans for the benefit of certain employees and directors. Our plans consist of the 2021 Long-Term Incentive Plan (the “2021 Plan”), the 2016 Long-Term Incentive Plan (the “2016 Plan”), the 2006 Long-Term Incentive Plan (the “2006 Plan”), and the 2006 Equity Incentive Plan (the “Equity Incentive Plan”), which are collectively known as the “Plans.” All Plans prior to the 2021 Plan were previously expired upon approval of the superseding Plan, and any shares available for grant under the respective plans were canceled at the time of expiration. On June 8, 2021, at the 2021 Annual Meeting of Stockholders, the stockholders approved the 2021 Plan. The 2021 Plan authorizes the issuance of a total of 5,000,000 shares of common stock. Any shares of common stock granted in connection with 2021 Plan awards will be counted against this limit as one share. No shares of common stock will be deemed to have been issued if (1) such shares covered by the unexercised portion of an option that terminates, expires, or is cancelled or settled in cash or (2) such shares are forfeited or subject to awards that are forfeited, canceled, terminated or settled in cash. In any calendar year, (1) no employee will be granted options and/or stock appreciation rights for more than 800,000 shares of common stock; (2) no employee will be granted performance-based equity awards under the 2021 Plan (other than options and stock appreciation rights), covering more than 800,000 shares of common stock. As of December 31, 2022 and 2021, there were 1,002,638 and 100,822 shares allocated to equity awards outstanding in the 2021 Plan, respectively. Under the previously expired 2016 Plan, there were 1,226,875 and 2,184,396 shares, respectively, allocated to equity awards outstanding as of December 31, 2022 and 2021, respectively, in the 2016 Plan. The 2016 Plan expired on June 8, 2021 upon approval of the 2021 Plan. Under the previously expired 2006 Plan and Equity Incentive Plan (formerly known as the Rent-Way, Inc. 2006 Equity Incentive Plan) there were 63,156 and 83,757 shares as of December 31, 2022 and 2021, respectively, allocated to outstanding equity awards under the 2006 Plan, and 47,827 and 63,065 shares as of December 31, 2022 and 2021, respectively, allocated to outstanding equity awards under the Equity Incentive Plan. The 2006 Plan and Equity Incentive Plan previously expired in 2016. Outstanding equity awards under these plans represent vested options that will expire at various times through 2026, unless exercised or canceled prior to the expiration date. Options granted to our employees generally become exercisable over a period of 1 to 4 years from the date of grant and may be exercised up to a maximum of 10 years from the date of grant. Options granted to directors are immediately exercisable. We grant restricted stock units to certain employees that vest ratably over a three-year service period. We recognize expense for these awards using the straight-line method over the requisite service period based on the number of awards expected to vest. We also grant performance-based restricted stock units that vest between 0% and 200% depending on our stock performance against an index using a total shareholder return formula established at the date of grant for the subsequent three-year period. We record expense for these awards over the requisite service period, net of the expected forfeiture rate, since the employee must maintain employment to vest in the award. Stock-based compensation expense for the years ended December 31, 2022, 2021 and 2020 is as follows:
| Year Ended December 31,
(In thousands) | 2022 |  | 2021 |  | 2020
Stock options | $ | 1,327 |  |  | $ | 2,001 |  |  | $ | 1,878 |
Restricted share units(1) | 158,031 |  |  | 145,553 |  |  | 10,406 |
Total stock-based compensation expense | 159,358 |  |  | 147,554 |  |  | 12,284 |
Tax benefit recognized in the statements of earnings | 3,391 |  |  | 4,304 |  |  | 3,062 |
Stock-based compensation expense, net of tax | $ | 155,967 |  |  | 143,250 |  |  | $ | 9,222 |
(1) Includes expense of $143.2 million and $127.1 million for the twelve months ended December 31, 2022 and 2021, respectively in stock compensation expense related to 8,096,595 common shares issued to the former owners of Acima, as part of the Aggregate Stock Consideration subject to restricted stock agreements, and recorded to Other charges in our Consolidated Statements of Operations. Shares issued as part of the Aggregate Stock Consideration for the acquisition of Acima Holdings were not issued under the authorization of the 2021 Plan or any prior approved long-term incentive plan described above. See Note B and Note N for additional information. We issue new shares of stock to satisfy option exercises and the vesting of restricted stock units. The fair value of unvested options that we expect to result in compensation expense was approximately $1.3 million with a weighted average number of years to vesting of 1.52 at December 31, 2022. Information with respect to stock option activity related to the Plans for the year ended December 31, 2022 follows:
| Equity Awards Outstanding |  | Weighted Average Exercise Price |  | Weighted Average Remaining Contractual Life |  | Aggregate Intrinsic Value (In thousands)
Balance outstanding at January 1, 2022 | 1,121,489 |  |  | $ | 22.68 |  |  |  |  |
Granted | — |  |  | — |  |  |  |  |
Exercised | (108,701) |  |  | 16.43 |  |  |  |  |
Forfeited | (97,930) |  |  | 28.64 |  |  |  |  |
Expired | (60,519) |  |  | 29.80 |  |  |  |  |
Balance outstanding at December 31, 2022 | 854,339 |  |  | $ | 22.29 |  |  | 5.37 |  | $ | 3,594 |
Exercisable at December 31, 2022 | 610,844 |  |  | $ | 19.82 |  |  | 19.82 |  | $ | 3,453 |
The intrinsic value of options exercised during the years ended December 31, 2022, 2021, and 2020 was $1.4 million, $14.3 million, and $5.8 million, respectively, resulting in tax benefits of $0.5 million, $5.0 million, and $2.0 million, respectively, which are reflected as an outflow from operating activities and an inflow from financing activities in the Consolidated Statements of Cash Flows. The weighted average fair values of the options granted under the Plans were calculated using the Black-Scholes method. There were no options granted in 2022. The weighted average grant date fair value and weighted average assumptions used in the option pricing models for 2021 and 2020 are as follows:
|  |  | Year Ended December 31,
|  |  | 2021 |  | 2020
Weighted average grant date fair value |  |  | $ | 14.94 |  |  | $ | 7.28 |
Weighted average risk free interest rate |  |  | 0.49 | % |  | 0.93 | %
Weighted average expected dividend yield |  |  | 2.87 | % |  | 4.75 | %
Weighted average expected volatility |  |  | 50.29 | % |  | 49.44 | %
Weighted average expected life (in years) |  |  | 4.62 |  | 4.62
Information with respect to non-vested restricted stock unit activity follows:
| Restricted Awards Outstanding |  | Weighted Average Grant Date Fair Value
Balance outstanding at January 1, 2022(1) | 9,209,257 |  |  | $ | 50.33 |
Granted | 1,224,764 |  |  | 25.50 |
Vested(2) | (4,711,403) |  |  | 48.99 |
Forfeited (3) | (545,133) |  |  | 41.41 |
Balance outstanding at December 31, 2022(1) | 5,177,485 |  |  | $ | 46.63 |
(1) Includes 7,898,706 and 3,691,328 outstanding shares at January 1, 2022 and December 31, 2022 related to RSA agreements issued as part of the Aggregate Stock Consideration for the acquisition of Acima Holdings, described further in Note B, which were not issued under the authorization of the 2021 Plan or any previously approved long-term incentive plan described above. (2) Includes 4,180,193 shares vested during 2022 as part of RSA agreements issued as part of the Aggregate Stock Consideration for the acquisition of Acima Holdings, as described above. (3) Includes 27,185 shares forfeited during 2022 as part of RSA agreements issued as part of the Aggregate Stock Consideration for the acquisition of Acima Holdings, as described above. Restricted stock units are valued using the closing price reported by the Nasdaq Global Select Market on the trading day immediately preceding the day of the grant. Unrecognized compensation expense for unvested restricted stock units at December 31, 2022, was approximately $169.2 million expected to be recognized over a weighted average period of 1.24 years.

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