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Stockholders' Equity | 6 Months Ended
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Jun. 30, 2021
Share-based Payment Arrangement [Abstract] |
STOCKHOLDERS' EQUITY | STOCKHOLDERS’ EQUITY Restricted Stock During the three months ended June 30, 2020 and 2021, we did not issue restricted stock. We cancelled 966 shares of restricted stock in connection with an employee's termination of employment. During the six months ended June 30, 2021, we issued restricted stock to certain employees totaling 9,300 shares that vest over a three-year period and had an aggregate grant date market value of $324,000 at a weighted average stock price of $34.79. In addition, 9,688 shares of vested restricted stock were returned for the payment of payroll taxes equivalent to $347,000. During the six months ended June 30, 2020, we issued restricted stock to certain employees totaling 10,200 shares that vest over a three-year period and had an aggregate grant date market value of $255,000 at a weighted average stock price of $25.00. In addition, 9,874 shares of vested restricted stock were returned for the payment of payroll taxes equivalent to $235,000. We recorded stock-based compensation expense, which is included in General, administrative and other expenses, for restricted stock awards of $183,000 and $98,000, for the three months ended June 30, 2020 and 2021, respectively and $368,000 and $219,000, for the six months ended June 30, 2020 and 2021, respectively. Stock Options During the three months ended June 30, 2021, we did not issue stock options. During the six months ended June 30, 2021, we granted 701,400 options to certain key employees at a weighted average price of $34.79. These options will vest in one-fifth increments over a five-year period and have a ten-year term. The fair value of these options was $7.1 million. We also granted an additional 150,000 options to a certain key employee at a weighted average price of $34.79. These options will vest when the price of our common stock closes at or above the specified prices below for three consecutive days within the ten-year term and the employee has remained continuously employed by us through such date. The fair value of these options was $1.7 million. During the three and six months ended June 30, 2020, we granted 20,000 options to a certain key employee at a weighted average price of $18.02. On June 26, 2020, we cancelled 100,000 options in connection with the resignation of our President and Chief Operating Officer. During the three months ended June 30, 2021, employees exercised 180,629 stock options of which 95,763 were surrendered by employees to pay the option price and taxes related to the option exercises. These options were exercised at a weighted average exercise price of $20.44 with an aggregate intrinsic value of $3.1 million. During the six months ended June 30, 2021, employees exercised 281,629 stock options of which 168,506 were surrendered by employees to pay the option price and taxes related to the option exercises. These options were exercised at a weighted average exercise price of $21.78 with an aggregate intrinsic value of $4.4 million. We received $1.7 million in cash for payment of the option price, of which $224,000 settled on July 2, 2021 and we withheld $976,000 for payment of payroll taxes. In addition, in accordance with the terms of the separation agreement, we accelerated 12,980 options in connection with the resignation of an employee which resulted in an additional $129,000 of stock-based compensation expense. We recorded stock-based compensation expense, which is included in General, administrative and other expenses, for stock options, including the accelerated stock options discussed above of $122,000 and $480,000, for the three months ended June 30, 2020 and 2021, respectively and $337,000 and $1,040,000, for the six months ended June 30, 2020 and 2021, respectively. Performance Awards During the three and six months ended June 30, 2021, we granted 10,254 performance awards to certain employees with a fair value of $0.4 million. During the three and six months ended June 30, 2021, we cancelled 6,987 and 34,935 performance awards, respectively, in connection with the termination of employment for three employees. On June 1, 2021, we amended the performance award agreements granted on May 19, 2020 for certain executive employees. The amendment granted an additional 70,236 performance awards payable in shares to three of our executives. These awards will vest (if at all) on December 31, 2024, provided that the Company’s common stock reaches one of three predetermined growth targets for a sustained period beginning on the grant date of June 1, 2021 and ending on December 31, 2024. The additional grant was treated as a modification of the original performance award agreement and resulted in an additional $2.6 million of incremental compensation costs, which are expected to be recognized over the remaining term of 43 months. The fair values of the performance awards granted during the three months ended June 30, 2021 were determined by using the Monte-Carlo simulation pricing model with the following assumptions:
|  | April 16, 2021 |  | June 1, 2021
Performance Period |  | April 16, 2021 - December 31, 2024 |  | June 1, 2021 - December 31, 2024
Simulation period (years) |  | 3.71 |  | 3.58
Share price at grant date |  | $35.83 |  | $38.78
Expected volatility |  | 41.17 | % |  | 41.79 | %
Risk-free interest rate |  | 0.52 | % |  | 0.46 | %
During the six months ended June 30, 2020, we issued 237,500 performance awards to certain employees, payable in shares, with a fair value of $2.8 million. On May 19, 2020, we cancelled all performance award agreements previously awarded to all individuals during 2019 and the February 19, 2020 award. Concurrently with the cancellation, the Compensation Committee of the Board of Directors (the “Board”) approved 368,921 new performance awards to be issued to certain employees. These new performance awards were treated as a modification of the cancelled awards and resulted in an additional $1.7 million of incremental compensation costs. On June 25, 2020, we granted an additional 13,974 performance awards to our then Vice-President of Cemetery Sales and Marketing with a fair value of $0.2 million. On June 26, 2020, we cancelled 33,538 performance awards in connection with the resignation of our President and Chief Operating Officer. We recorded stock-based compensation expense, which is included in General, administrative and other expenses, for performance awards of $182,000 and $352,000 for the three months ended June 30, 2020 and 2021, respectively and $303,000 and $589,000 for the six months ended June 30, 2020 and 2021, respectively. Employee Stock Purchase Plan During the three months ended June 30, 2020 and 2021, employees purchased a total of 17,020 and 13,706 shares, respectively, at a weighted average price of $15.40 and $26.32 per share, respectively. During the six months ended June 30, 2020 and 2021, employees purchased a total of 43,314 and 31,888 shares, respectively, at a weighted average price of $14.39 and $26.32 per share, respectively. The fair value of the right (option) to purchase shares under the ESPP is estimated at the date of purchase with the four quarterly purchase dates using the following assumptions:
| 2021
Dividend yield | 0.01%
Expected volatility | 48.14%
Risk-free interest rate | 0.09%, 0.09%, 0.10%, 0.10%
Expected life (years) | 0.25, 0.50, 0.75, 1.00
We recorded stock-based compensation expense, which is included in General, administrative and other expenses and Regional and unallocated funeral and cemetery costs, for the ESPP totaling $80,000 and $135,000 for the three months ended June 30, 2020 and 2021, respectively and $244,000 and $341,000 for the six months ended June 30, 2020 and 2021, respectively. Non-Employee Director Compensation During the three months ended June 30, 2021, we granted 4,333 shares of our common stock to six Directors and 135 shares of our common stock to an advisor to our Board, which were valued at $160,000 and $5,000, respectively, at a weighted average stock price of $36.97. During the six months ended June 30, 2021, we granted 9,373 shares of our common stock to six Directors and 277 shares of our common stock to an advisor to our Board, which were valued at $338,000 and $10,000, respectively, at a weighted average stock price of $36.01. During the three months ended June 30, 2020, we granted 7,859 shares of our common stock to five Directors, and 275 shares of common stock to an advisor to our Board, which were valued at $142,000 and $5,000 respectively at a weighted average stock price of $18.12. During the six months ended June 30, 2020, we granted 16,680 shares of our common stock to five Directors, and 584 shares of common stock to an advisor to our Board, which were valued at $285,000 and $10,000, respectively at a weighted average stock price of $17.08. We recorded stock-based compensation expense, which is included in General, administrative and other expenses, related to annual retainers, including the value of stock granted to Directors and an advisor to our Board, of $201,000 and $219,000 for the three months ended June 30, 2020 and 2021, respectively and $402,000 and $455,000 for the six months ended June 30, 2020 and 2021, respectively. Share Repurchase On May 18, 2021, our Board approved an additional $25.0 million under our share repurchase program in accordance with Rule 10b-18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). During the three and six months ended June 30, 2021, we repurchased 324,700 shares of common stock (of which 24,700 settled in July 2021) for a total cost of $12.3 million (of which $742,000 settled in July 2021) at an average cost of $37.88 per share pursuant to our share repurchase program. Our shares were purchased in the open market at times and in amounts as management determined appropriate based on factors such as market conditions, legal requirements and other business considerations. Shares purchased pursuant to the repurchase program are currently held as treasury shares. At June 30, 2021, we had approximately $38.3 million available for repurchase under our share repurchase program. See Note 18 to the Consolidated Financial Statements included herein for additional information related to our share repurchase program. Cash Dividends Our Board declared the following dividends payable on the dates below (in thousands, except per share amounts):
2021 | Per Share |  | Dollar Value
March 1 st | $ | 0.100 |  |  | $ | 1,799 |
June 1 st | 0.100 |  |  | 1,808 |
2020 | Per Share |  | Dollar Value
March 1 st | $ | 0.075 |  |  | $ | 1,339 |
June 1 st | 0.075 |  |  | 1,343 |

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- 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
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