Stock-Based Compensation

6 Months Ended

Jun. 30, 2021

Share-based Payment Arrangement [Abstract]

Stock-based compensation awards granted by our Board of Directors for the three and six months ended June 30, 2021 and 2020 were as follows:


	For the Three Months Ended June 30,		For the Six Months Ended June 30,
	2021	2020	2021	2020
Award type:
Stock options	2,000	2,000	479,500	300,000
Deferred share units	13,861	12,091	25,672	24,643
Restricted stock units	1,500	2,602	515,960	311,991

In the three months ended June 30, 2021 and 2020, we recognized $15.3 million and $0.7 million, respectively, in stock-based compensation expense. A majority of the expense, $13.4 million and $0.6 million, respectively, was recorded as selling and administrative expense in the Consolidated Statement of Operations, with the remaining expenses incurred as cost of sales.

In the six months ended June 30, 2021 and 2020, we recognized $16.0 million and $1.1 million, respectively, in stock - based compensation expense. A majority of expense, $14.1 million and $1.0 million, respectively, was recorded as selling and administrative expense in the Consolidated Statement of Operations, with the remaining expenses incurred as cost of sales.

In the three and six months ended June 30, 2021, the expense includes $14.7 million due to the "Change in Control" accelerated vesting provisions of certain of our awards. For the purpose of these grants, a “Change in Control” occurred when Brookfield and any affiliates thereof (collectively, the “Majority Stockholder”) ceased to own stock of the Company that constitutes at least thirty percent (30%) or thirty-five percent (35%), as applicable, of the total fair market value or total voting

power of the stock of the Company. Out of the $14.7 million recorded with the Change in Control, $0.9 million accelerated at the 35% ownership level and the remaining $13.8 million accelerated at the 30% ownership level.

As of June 30, 2021, unrecognized compensation cost related to non-vested stock options, deferred share units and restricted stock units was $0.8 million, which will be recognized over the remaining weighted average life of 1.9 years.

Stock option, deferred share unit and restricted stock unit award activity under the Company's Omnibus Equity Incentive Plan for the six months ended June 30, 2021 was as follows:

Stock Options


	Number of Shares	Weighted- Average Exercise Price
Outstanding unvested as of December 31, 2020	906,361	$	13.01
Granted	479,500	11.49
Vested	(1,214,192)	11.96
Forfeited	(42,349)	13.36
Outstanding unvested as of June 30, 2021	129,320	$	17.17

Deferred Share Unit and Restricted Stock Unit awards


	Number of Shares	Weighted- Average Grant Date Fair Value
Outstanding unvested as of December 31, 2020	524,488	$	10.41
Granted	541,632	11.51
Vested	(1,046,631)	10.96
Forfeited	(16,793)	10.78
Outstanding unvested as of June 30, 2021	2,696	$	13.96