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Stock-Based Compensation | 12 Months Ended
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Dec. 31, 2020
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] |
Stock-Based Compensation | 16. Stock-Based Compensation The Company’s 2013 Omnibus Incentive Plan (the “2013 Omnibus Plan”) was approved by shareholders on May 7, 2013 and replaced the 2003 Incentive Stock and Awards Plan (the “2003 Stock Plan”). The 2013 Omnibus Plan also replaced the Company’s Short-Term Incentive Plan (the “STIP”) as of December 31, 2013. The 2003 Stock Plan and the STIP are referred to cumulatively as the “Prior Plans.” No new awards may be granted under the Prior Plans after the respective termination dates, but the Prior Plans continue to govern awards outstanding issued thereunder; outstanding awards will continue in force and effect until vested, exercised or forfeited pursuant to their terms. The 2013 Omnibus Plan provides for both short-term and long-term incentive awards for employees and non-employee directors. Stock-based awards may take the form of stock options, stock appreciation rights, restricted stock, restricted stock units, and performance share or performance unit awards. The total number of shares of the Company’s common stock available for awards under the 2013 Omnibus Plan is 7,477,395 shares. The total number of shares of the Company’s common stock still available for issuance as of December 31, 2020 is 4,691,191 shares. The Company recognizes expense net of estimated future forfeitures for all stock-based compensation on a straight-line basis over the vesting period of the entire award. Estimated future forfeitures are based on the Company’s historical experience. During the year ended December 31, 2020, the Company recorded stock-based compensation expense of $6.0 million of which $8.5 million of expense was included in engineering, selling and administrative expense and $2.5 million of income was included in restructuring expense in the Consolidated Statement of Operations. Income recorded in restructuring expense was primarily related to the forfeiture of grants associated with employee separation agreements. Total stock-based compensation expense recognized within engineering, selling and administrative expenses in the Consolidated Statements of Operations was $9.5 million and $7.5 million during the years ended December 31, 2019 and 2018, respectively. In 2018, the Company recognized $0.7 million of expense related to the modification of stock awards associated with employee severance which is included in restructuring expense in the Consolidated Statements of Operations. Shares are issued out of treasury stock upon exercise for stock options and vesting of restricted stock units and performance share units. Stock Options Stock option grants to employees are exercisable in three annual increments over a three-year period beginning on the first anniversary of the grant date and expire 10 years subsequent to the grant date. The Company granted stock options to employees to acquire 250,432, 210,243 and 187,484 shares of common stock during the years ended December 31, 2020, 2019 and 2018, respectively. Stock-based compensation expense is calculated by estimating the fair value of non-qualified stock options at the time of grant and is amortized over the stock options’ vesting period. The Company recognized $1.3 million, $2.7 million and $2.4 million of expense before income taxes associated with stock options during 2020, 2019 and 2018, respectively. A summary of the Company’s stock option activity is as follows:
|  | Shares |  |  | Weighted Average Exercise Price Per Share |  |  | Aggregate Intrinsic Value |
Options outstanding as of December 31, 2019 |  |  | 1,058,652 |  |  | $ | 21.82 |  |  |  |  |
Granted |  |  | 250,432 |  |  |  | 12.37 |  |  |  |  |
Exercised |  |  | (11,250 | ) |  |  | 9.27 |  |  |  |  |
Forfeited |  |  | (220,714 | ) |  |  | 16.44 |  |  |  |  |
Cancelled |  |  | (9,240 | ) |  |  | 14.78 |  |  |  |  |
Options outstanding as of December 31, 2020 |  |  | 1,067,880 |  |  | $ | 20.91 |  |  | $ | 0.1 |
Options exercisable as of December 31, 2020 |  |  | 844,952 |  |  | $ | 21.94 |  |  | $ | — |
The Company uses the Black-Scholes valuation model to value stock options. The Company’s volatility assumption was based on a blend of its historical stock price and an average of historical stock prices of selected peers. The assumed risk-free rate was based on U.S. Treasury rates in effect at the time of grant with varying maturities weighted commensurately with the expected life assumption. The expected option life represents the period of time options are expected to be outstanding and is based on historical experience. The weighted average fair value per share of options granted during the years ended December 31, 2020, 2019 and 2018 was $5.35, $8.07 and $15.66, respectively. The fair value of each option grant was estimated at the date of grant using the following assumptions:
|  | 2020 |  |  | 2019 |  |  | 2018 |
Expected life (years) |  |  | 6.5 |  |  |  | 6.5 |  |  |  | 6.5 |
Risk-free interest rate |  |  | 1.2 | % |  |  | 2.6 | % |  |  | 2.8 | %
Expected volatility |  |  | 42.3 | % |  |  | 39.8 | % |  |  | 43.7 | %
Expected dividend yield |  |  | — | % |  |  | — | % |  |  | — | %
As of December 31, 2020, the Company has $0.8 million of unrecognized compensation expense before income tax related to stock options, which will be recognized over a weighted average period of 1.4 years. Restricted Stock Units The Company granted 333,269, 178,371 and 86,692 restricted stock units in 2020, 2019 and 2018, respectively. The Company recognized $3.5 million, $2.4 million and $1.5 million of compensation expense associated with restricted stock units during 2020, 2019 and 2018, respectively. The restricted stock units are earned based on service over the vesting period. Beginning in 2019, restrictions on restricted stock units granted to employees lapse in three annual increments over a three-year period beginning on the first anniversary of the grant date. Prior to 2019, restrictions on restricted stock units granted to employees lapse 100% on the third anniversary of the grant date, assuming continued employment. The expense is based on the fair value of the Company's shares as of the grant date which is the grant date closing stock price. A summary of activity for restricted stock units is as follows:
|  | Shares |  |  | Weighted Average Grant Date Fair Value Per Share |
Unvested as of December 31, 2019 |  |  | 290,563 |  |  | $ | 22.55 |
Granted |  |  | 333,269 |  |  |  | 11.64 |
Vested |  |  | (177,307 | ) |  |  | 21.66 |
Forfeited |  |  | (84,232 | ) |  |  | 14.27 |
Unvested as of December 31, 2020 |  |  | 362,293 |  |  | $ | 14.87 |
As of December 31, 2020, the Company has $2.6 million of unrecognized compensation expense before income tax related to restricted stock units which will be recognized over a weighted average period of 1.8 years. Performance Share Units The Company granted 328,310, 228,037 and 93,298 of performance share units in 2020, 2019 and 2018, respectively. The performance share units are earned based on service over the vesting period and on the extent to which performance goals are met over the applicable three-year performance period. The performance goals vary for performance share units each grant year. The Company recognized $0.2 million, $3.4 million and $2.5 million of compensation expense associated with performance share units during 2020, 2019 and 2018, respectively. The performance share units granted in 2020 are earned based on the extent to which performance goals are met by the Company over a three-year period from January 1, 2020 to December 31, 2022. The performance goals for the performance share units granted in 2020 are based on the 3-year average of the Company’s adjusted EBITDA percentage from continuing operations from 2020 to 2022 with a +/-20% modifier based on total shareholder return relative to a defined peer group of companies during the three-year performance period, not to exceed 200% of target shares granted. Depending on the forgoing factors, the number of shares earned could range from zero to two times the amount of performance share units outstanding on the vesting date. The performance share units granted in 2019 are earned based on the extent to which performance goals are met by the Company over a three-year period from January 1, 2019 to December 31, 2021. The performance goals were based fifty percent (50%) on total shareholder return relative to a peer group of companies over the three-year period and fifty percent (50%) on meeting targeted adjusted EBITDA margin at the end of the three-year period. Depending on the foregoing factors, the current number of shares awarded could range from zero to two times the amount of performance share units outstanding on the vesting date. The performance share units granted in 2018 are earned based on the extent to which performance goals are met by the Company over a three-year period from January 1, 2018 to December 31, 2020. The performance goals were based fifty percent (50%) on total shareholder return relative to a peer group of companies over the three-year period and fifty percent (50%) on meeting targeted adjusted EBITDA margin at the end of the three-year period. Depending on the foregoing factors, the current number of shares awarded could range from zero to two times the amount of performance share units outstanding on the vesting date. A summary of activity for performance share units is as follows:
|  | Shares |  |  | Weighted Average Grant Date Fair Value Per Share |
Unvested as of December 31, 2019 |  |  | 457,583 |  |  | $ | 26.25 |
Granted |  |  | 328,310 |  |  |  | 12.67 |
Vested |  |  | (97,135 | ) |  |  | 26.11 |
Forfeited |  |  | (330,423 | ) |  |  | 21.05 |
Unvested as of December 31, 2020 |  |  | 358,335 |  |  | $ | 18.64 |
As of December 31, 2020, the Company has $2.2 million of unrecognized compensation expense before income tax related to performance share units which will be recognized over a weighted average period of 1.9 years. The expense for the adjusted EBITDA performance share units is based on the fair value of the Company's shares as of the grant date which is the grant date closing stock price. For total shareholder return performance share units, the Company uses the Monte Carlo valuation model to determine fair value of the grants. The Company used an average of historical stock prices of selected peers for its volatility assumption. The assumed risk-free rates were based on three-year U.S. Treasury rates in effect at the time of grant. The fair value of each total shareholder return performance share unit was estimated at the date of grant using the following assumptions:
|  | 2020 |  |  | 2019 |  |  | 2018 |
Correlation |  |  | 32.2 | % |  |  | 32.5 | % |  |  | 29.5 | %
Risk-free interest rate |  |  | 1.1 | % |  |  | 2.5 | % |  |  | 2.4 | %
Expected volatility |  |  | 47.5 | % |  |  | 47.0 | % |  |  | 33.8 | %
Expected dividend yield |  |  | — | % |  |  | — | % |  |  | — | %
Director Compensation Awards A total of 77,608, 50,673 and 25,021 equity compensation awards were granted to directors in 2020, 2019, and 2018, respectively. The equity compensation awards vested immediately upon the grant date. The Company recognized $1.0 million, $1.0 million and $1.1 million of compensation expense associated with equity compensation awards to directors in 2020, 2019 and 2018, respectively. The expense is based on the fair value of the Company's shares as of the grant date which is the grant date closing stock price.

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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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