XML 40 R24.htm IDEA: XBRL DOCUMENT
v3.22.0.1

Stock Compensation Plans | 12 Months Ended
--- | ---
Dec. 31, 2021
Share-based Payment Arrangement [Abstract] |
Stock Compensation Plans | Stock Compensation Plans The Company's 2019 Long-Term Incentive Compensation Plan, dated February 22, 2019 and subsequently approved by Shareholders on May 10, 2019, is authorized to issue up to 2.3 million shares of common stock as options, share appreciation rights, restricted shares and units, performance shares and units and other stock or cash-based awards. Approximately 0.2 million shares remain available for issuance at December 31, 2021. Stock-based compensation expense for all stock-based compensation awards are based on the grant-date fair value. The Company recognizes these compensation costs on a straight-line basis over the requisite service period of the award and recognized forfeitures as they occur. Total compensation expense recognized in the Consolidated Statements of Operations for all stock compensation programs was $11.0 million, $9.8 million, and $15.8 million for the years ended December 31, 2021, 2020 and 2019, respectively. Of the expense recognized, approximately $1.3 million, $4.3 million and $9.4 million were related to awards granted as part of the Lansing Acquisition 2018 Inducement and Retention Award Plan for the years ended December 31, 2021, 2020 and 2019, respectively. Non-Qualified Stock Options ("Options") In 2015, the Company granted 325 thousand non-qualified stock options upon hiring of a senior executive. The fair value of the options was estimated at the date of grant under the Black-Scholes option pricing model. The options have a term of seven years with a weighted-average exercise price of $35.40 and have since fully vested. A reconciliation of the number of Options outstanding under the 2014 Long Term Incentive Compensation Plan as of December 31, 2021, and changes during the period then ended, is as follows:
| Shares (in thousands) |  | Weighted-Average Exercise Price |  |  |  |
Outstanding at January 1, 2021 | 325 |  |  | $ | 35.40 |  |  |  |  |
Exercised | (183) |  |  | 35.40 |  |  |  |  |
Outstanding at December 31, 2021 | 142 |  |  | $ | 35.40 |  |  |  |  |
For the year ended December 31, 2021, there were no options granted, cancelled or forfeited; and all options outstanding as of December 31, 2021 were vested and exercisable. The total intrinsic value of the options exercised for the year ended December 31, 2021 was $0.6 million and the aggregate intrinsic value of options outstanding as of December 31, 2021 was $0.5 million. The Company expects all remaining options outstanding as of December 31, 2021 to be exercised in 2022 as all remaining options outstanding expire in November of 2022. As of December 31, 2021, there was no unrecognized compensation cost related to Options. Restricted Stock Awards ("RSAs") These awards carry voting and dividend equivalent rights upon vesting; however, sale of the shares is restricted prior to vesting. RSAs graded vest over a period of 3 years. Total restricted stock expense is equal to the market value of the Company's common shares on the date of the award and is recognized over the service period on a straight-line basis. A summary of the status of the Company's non-vested RSAs as of December 31, 2021, and changes during the period then ended, is presented below:
| Shares (in thousands) |  | Weighted-Average Grant-Date Fair Value
Non-vested at January 1, 2021 | 567 |  |  | $ | 28.50 |
Granted | 192 |  |  | 26.86 |
Vested | (332) |  |  | 28.46 |
Forfeited | (39) |  |  | 28.24 |
Non-vested at December 31, 2021 | 388 |  |  | $ | 27.75 |
| Year ended December 31,
| 2021 |  | 2020 |  | 2019
Total fair value of shares vested (in thousands) | $ | 9,453 |  |  | $ | 13,510 |  |  | $ | 8,225 |
Weighted-average fair value of RSAs granted | $ | 26.86 |  |  | $ | 18.35 |  |  | $ | 33.87 |
As of December 31, 2021, there was $2.2 million of total unrecognized compensation cost related to non-vested RSAs that is expected to be recognized over a weighted-average period of 1.2 years. Earnings Per Share-Based Performance Share Units (“EPS PSUs”) Each EPS PSU gives the participant the right to receive common shares dependent on the achievement of specified performance results over a 3-year performance period. At the end of the performance period, the number of shares of stock issued will be determined by adjusting the award upward or downward from a target award. Fair value of EPS PSUs issued is based on the market value of the Company's common shares on the date of the award. The related compensation expense is recognized over the performance period when achievement of the award is probable and is adjusted for changes in the number of shares expected to be issued if changes in performance are expected. Currently, the Company is accounting for the awards granted in 2021, 2020 and 2019 at 100%, 61% and 28% of the maximum amount available for issuance, respectively. A summary of the status of the Company's EPS PSUs as of December 31, 2021, and changes during the period then ended, is presented below:
| Shares (in thousands) |  | Weighted-Average Grant-Date Fair Value
Non-vested at January 1, 2021 | 344 |  |  | $ | 24.58 |
Granted | 149 |  |  | 26.80 |
Vested | — |  |  | — |
Forfeited | (107) |  |  | 30.89 |
Non-vested at December 31, 2021 | 386 |  |  | $ | 23.69 |
| Year ended December 31,
| 2021 |  | 2020 |  | 2019
Weighted-average fair value of EPS PSUs granted | $ | 26.80 |  |  | $ | 19.06 |  |  | $ | 27.23 |
As of December 31, 2021, there was $3.4 million unrecognized compensation cost related to non-vested EPS PSUs that is expected to be recognized over a weighted-average period of 1.3 years. Total Shareholder Return-Based Performance Share Units (“TSR PSUs”) Each TSR PSU gives the participant the right to receive common shares dependent on total shareholder return over a 3-year period. At the end of the period, the number of shares of stock issued will be determined by adjusting the award upward or downward from a target award. Fair value of TSR PSUs was estimated at the date of grant using a Monte Carlo Simulation with the following assumptions: Expected volatility was estimated based on the historical volatility of the Company's common shares over the 2.83 years period prior to the grant date. The average expected life was based on the contractual term of the plan. The risk-free rate is based on the U.S. Treasury Strips available with maturity period consistent with the expected life.
| 2021
Risk free interest rate | 0.25%
Dividend yield | —%
Volatility factor of the expected market price of the common shares | 52%
Expected term (in years) | 2.83
Correlation coefficient | 0.45
A summary of the status of the Company's TSR PSUs as of December 31, 2021, and changes during the period then ended, is presented below:
| Shares (in thousands) |  | Weighted-Average Grant-Date Fair Value
Non-vested at January 1, 2021 | 344 |  |  | $ | 31.83 |
Granted | 149 |  |  | 35.66 |
Vested | — |  |  | — |
Forfeited | (107) |  |  | 40.57 |
Non-vested at December 31, 2021 | 386 |  |  | $ | 30.89 |
| Year ended December 31,
| 2021 |  | 2020 |  | 2019
Weighted-average fair value of TSR PSUs granted | $ | 35.66 |  |  | $ | 16.80 |  |  | $ | 49.20 |
As of December 31, 2021, there was approximately $2.2 million unrecognized compensation cost related to non-vested TSR PSUs that is expected to be recognized over a weighted-average period of 1.3 years. Employee Share Purchase Plan (the “ESP Plan”) The Company's 2019 ESP Plan is authorized to issue up to 230 thousand common shares. The ESP Plan allows employees to purchase common shares through payroll withholdings. The Company has approximately 120 thousand common shares remaining available for issuance to and purchase by employees under this plan. The ESP Plan also contains an option component. The purchase price per share under the ESP Plan is the lower of the market price at the beginning or end of the year. The Company records a liability for withholdings not yet applied towards the purchase of common stock. This liability is included in Accrued expenses and other current liabilities on the Consolidated Balance Sheets. The fair value of the option component of the ESP Plan is estimated at the date of grant under the Black-Scholes option pricing model with the following assumptions at the grant date. Expected volatility was estimated based on the historical volatility of the Company's common shares over the past year. The average expected life was based on the contractual term of the plan. The risk-free rate is based on the U.S. Treasury yield curve rate with a one year term. Forfeitures are estimated at the date of grant based on historical experience.
| Year ended December 31,
| 2021 |  | 2020 |  | 2019
Risk free interest rate | 0.10 | % |  | 1.59 | % |  | 1.59 | %
Dividend yield | 2.86 | % |  | 2.71 | % |  | 2.27 | %
Volatility factor of the expected market price of the common shares | 72 | % |  | 36 | % |  | 36 | %
Expected life for the options (in years) | 1.0 |  | 1.0 |  | 1.0

X
- Definition The entire disclosure for share-based payment arrangement. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock
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