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Stock Option And Stock Award Plans | 12 Months Ended
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Dec. 31, 2022
Share-Based Payment Arrangement [Abstract] |
Stock Option And Stock Award Plans | 11. STOCK OPTION AND STOCK AWARD PLANS As of December 31, 2022, the Company had one stock-based compensation plan that permits the grants of stock options, stock appreciation rights (“SARs”), stock, restricted stock, and stock unit awards. Awards available for grant totaled 681,479 shares at December 31, 2022. Stock options may be granted to purchase a specified number of shares of common stock at a price no lower than the fair market value on the date of grant and for a term not to exceed 10 years. Stock options granted by the Company in 2022, 2021 and 2020 vest after 2 years and have a 7-year life or vest after 3 years and have a 5-year life. Stock options exercisable totaled 2,719,919 and 1,762,190 shares at December 31, 2022 and 2021, respectively. On December 1, 2020, Tredegar’s Board of Directors declared a special cash dividend of $200 million, or $5.97 per share, on the Company’s common stock (the “Special Dividend”). The Special Dividend was payable on December 18, 2020 and had an ex-dividend date of December 21, 2020. All stock option awards that were outstanding at the time of the Special Dividend were modified pursuant to the nondiscretionary anti-dilution provisions in the related stock-based compensation plan. SARs that were outstanding at the time of the Special Dividend were also modified pursuant to the nondiscretionary anti-dilution provisions in the related SARs grant agreements. The modifications included increasing the number of outstanding stock options and SARs as well as reducing the exercise prices of all outstanding stock options and SARS. The modification did not result in additional stock-based compensation expense. No other terms or conditions of outstanding awards were modified. A summary of stock options outstanding at December 31, 2022, 2021 and 2020, and changes during those years, is presented below:
|  |  | Option Exercise Price/Share
| Number of Options |  | Range |  | Weighted Average
Outstanding at January 1, 2020 | 1,628,903 |  |  | $ | 15.65 |  |  | to |  | $ | 24.84 |  |  | $ | 19.13 |
Granted | 638,074 |  |  | 10.75 |  |  | to |  | 14.62 |  |  | 11.90 |
Modification for special cash dividend(a) | 701,535 |  |  | 10.75 |  |  | to |  | 14.62 |  |  | 11.90 |
Forfeited and expired(a) | (141,074) |  |  | 10.75 |  |  | to |  | 24.84 |  |  | 11.87 |
Outstanding at December 31, 2020(a) | 2,827,438 |  |  | 10.75 |  |  | to |  | 22.49 |  |  | 13.55 |
Granted | 388,822 |  |  | 16.37 |  |  | to |  | 16.37 |  |  | 16.37 |
Forfeited and expired | (22,611) |  |  | 14.47 |  |  | to |  | 19.64 |  |  | 18.14 |
Exercised | (67,705) |  |  | 10.75 |  |  | to |  | 17.29 |  |  | 13.51 |
Outstanding at December 31, 2021 | 3,125,944 |  |  | 10.75 |  |  | to |  | 22.49 |  |  | 13.82 |
Forfeited and expired | (17,203) |  |  | 14.47 |  |  | to |  | 19.64 |  |  | 15.33 |
Outstanding at December 31, 2022 | 3,108,741 |  |  | $ | 10.75 |  |  | to |  | $ | 22.49 |  |  | $ | 13.81 |
(a) The option exercise price per share reflects the reduction to the exercise prices of outstanding stock options impacted by the modification due to the anti-dilution provisions in the stock-based compensation plan.
The assumptions used in the Black-Scholes options-pricing model for valuing Tredegar stock options originally granted in 2021 and 2020, and the related estimated fair values at the date of grant, were as follows, no options were granted in 2022:
| 2021 |  | 2020
Dividend yield | 2.6 | % |  | 2.5 | %
Weighted average volatility percentage | 48.3 | % |  | 43.8 | %
Weighted average risk-free interest rate | 0.9 | % |  | 0.8 | %
Holding period (years) | 5 |  | 5
Weighted average exercise price at date of grant (also weighted average market price at date of grant)(a) | $ | 16.37 |  |  | $ | 14.41 |
Estimated weighted average fair value of options per share at date of grant | $ | 5.57 |  |  | $ | 4.44 |
Total estimated fair value of stock options granted (in thousands) | $ | 2,165 |  |  | $ | 2,833 |
(a) In December 2020, the weighted average exercise price for outstanding stock option awards granted in 2020 were modified to $10.75. As the anti-dilution provisions in the stock-based compensation plan were structured to equitably adjust the award’s fair value before and after the modification, there is no resulting incremental fair value.
The dividend yield is the actual dividend yield on Tredegar’s common stock at the date of grant, which the Company believes is a reasonable estimate of the expected yield during the holding period. The expected volatility is based on the historical volatility of Tredegar’s common stock using a sequential period of historical data equal to the expected holding period of the option. The Company has no reason to believe that future volatility for this period is likely to differ from the past. The assumed risk-free interest rate is based on observed interest rates for U.S. Treasury debt securities appropriate for the expected holding period. The following table summarizes additional information about stock options outstanding and exercisable at December 31, 2022:
|  |  |  |  |  | Options Outstanding at December 31, 2022 |  | Options Exercisable at December 31, 2022
|  |  |  |  |  |  |  | Weighted Average |  | Aggregate Intrinsic Value |  |  |  |  |  | Aggregate Intrinsic Value
Range of Exercise Prices |  | Shares |  | Remaining Contractual Life |  | Exercise Price |  |  | Shares |  | Weighted Average Exercise Price |
$ | 10.75 |  |  | to |  | $ | 16.37 |  |  | 2,939,509 |  |  | 3.4 years |  | $ | 13.47 |  |  | $ | — |  |  | 2,550,687 |  |  | $ | 13.03 |  |  | $ | — |
17.29 |  |  | to |  | 25.94 |  |  | 169,232 |  |  | 0.7 years |  | 19.74 |  |  | — |  |  | 169,232 |  |  | 19.74 |  |  | — |
Total |  | 3,108,741 |  |  | 3.3 years |  | $ | 13.82 |  |  | $ | — |  |  | 2,719,919 |  |  | $ | 13.45 |  |  | $ | — |
The total intrinsic value of stock options exercised was $0.2 million in 2021. There were no stock options exercised in 2022 and 2020. The grant-date fair value of stock option-based awards vested in 2022, 2021, and 2020 was $5.4 million, $3.5 million, and $3.0 million, respectively. As of December 31, 2022, the unrecognized compensation cost for continuing operations related to stock option-based awards was $0.2 million. This cost is expected to be recognized over the remaining weighted average period of 0.2 years. Restricted stock grants ordinarily vest three years from the date of grant based upon continued employment. The fair value of restricted stock awards is estimated as of the grant date using the closing stock price on that date. Stock unit awards vest upon the achievement of certain performance targets. The following table summarizes additional information about unvested restricted stock outstanding at December 31, 2022, 2021 and 2020:
| Unvested Restricted Stock |  | Maximum Unvested Restricted Stock Units Issuable Upon Satisfaction of Certain Performance Criteria
| Number of Shares |  | Weighted Avg. Grant Date Fair Value/Share |  | Grant Date Fair Value (In thousands) |  | Number of Shares |  | Weighted Avg. Grant Date Fair Value/Share |  | Grant Date Fair Value (In thousands)
Outstanding at January 1, 2020 | 285,935 |  |  | $ | 18.27 |  |  | $ | 5,224 |  |  | 147,663 |  |  | $ | 21.25 |  |  | $ | 3,138 |
Granted | 155,138 |  |  | 14.55 |  |  | 2,257 |  |  | 34,275 |  |  | 15.25 |  |  | 523 |
Vested | (148,709) |  |  | 17.39 |  |  | (2,586) |  |  | (37,370) |  |  | 17.38 |  |  | (649) |
Forfeited | (57,385) |  |  | 17.00 |  |  | (976) |  |  | (32,066) |  |  | 17.36 |  |  | (557) |
Outstanding at December 31, 2020 | 234,979 |  |  | 16.68 |  |  | 3,919 |  |  | 112,502 |  |  | 21.82 |  |  | 2,455 |
Granted | 200,073 |  |  | 15.63 |  |  | 3,127 |  |  | 14,669 |  |  | 15.24 |  |  | 224 |
Vested | (87,636) |  |  | 15.78 |  |  | (1,383) |  |  | (73,930) |  |  | 17.17 |  |  | (1,269) |
Forfeited | (11,616) |  |  | 16.38 |  |  | (190) |  |  | (2,523) |  |  | 17.63 |  |  | (44) |
Outstanding at December 31, 2021 | 335,800 |  |  | 16.30 |  |  | 5,473 |  |  | 50,718 |  |  | 17.63 |  |  | 1,366 |
Granted | 301,969 |  |  | 11.88 |  |  | 3,587 |  |  | — |  |  | — |  |  | — |
Vested | (144,317) |  |  | 15.10 |  |  | (2,179) |  |  | — |  |  | — |  |  | — |
Forfeited | (18,474) |  |  | 14.94 |  |  | (276) |  |  | (50,718) |  |  | 17.63 |  |  | 1,366 |
Outstanding at December 31, 2022 | 474,978 |  |  | $ | 13.82 |  |  | $ | 6,564 |  |  | — |  |  | $ | — |  |  | $ | — |
As of December 31, 2022, the unrecognized compensation cost for continuing operations related to non-vested restricted stock awards was $3.2 million. This cost is expected to be recognized over the remaining weighted average period of 1.6 years. SARs granted by the Company in 2021 and 2020 vest after 2 years and have a 7-year life. There were no SARs granted in 2022. SARs may be settled in cash upon exercise and therefore are classified as liabilities and included in accrued expenses in the consolidated balance sheet. The fair value of these liability awards is remeasured at each reporting period until the date of settlement. Increases and decreases in stock-based compensation expense is recognized over the vesting period, or immediately, for vested awards. A summary of SARs outstanding at December 31, 2022, 2021 and 2020, and changes during those years, is presented below:
|  |  | Exercise Price/Share
| Number of SARs |  | Range |  | Weighted Average
Outstanding at January 1, 2020 | — |  |  | $ | — |  |  | to |  | $ | — |  |  | $ | — |
Granted(a) | 387,252 |  |  | 10.75 |  |  | to |  | 19.64 |  |  | 11.60 |
Modification for special cash dividend | 71,402 |  |  | 10.75 |  |  | to |  | 19.64 |  |  | 11.60 |
Forfeited and expired | (82,214) |  |  | 10.75 |  |  | to |  | 19.64 |  |  | 11.39 |
Outstanding at December 31, 2020 | 376,440 |  |  | 10.75 |  |  | to |  | 19.64 |  |  | 11.64 |
Granted | 164,464 |  |  | 16.37 |  |  | to |  | 16.37 |  |  | 16.37 |
Forfeited and expired | (10,043) |  |  | 10.75 |  |  | to |  | 16.37 |  |  | 13.01 |
Exercised | (9,260) |  |  | 10.75 |  |  | to |  | 15.25 |  |  | 13.87 |
Outstanding at December 31, 2021 | 521,601 |  |  | 10.75 |  |  | to |  | 16.37 |  |  | 13.55 |
Forfeited and expired | (22,914) |  |  | 10.75 |  |  | to |  | 16.37 |  |  | 14.83 |
Outstanding at December 31, 2022 | 498,687 |  |  | $ | 10.75 |  |  | to |  | $ | 16.37 |  |  | $ | 13.49 |
(a) The SARs exercise price per share reflects the reduction to the exercise prices of outstanding SARs as a results of the modification to the awards pursuant to the nondiscretionary anti-dilution provisions in the related SAR s grant agreements.
The grant-date fair value of SARs awards vested in 2022, 2021 and 2020 was $0.5 million, $0.1 million and $0.6 million, respectively. As of December 31, 2022, the unrecognized compensation cost for continuing operations was immaterial. This cost is expected to be recognized over the remaining weighted average period of 0.2 years.

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