Stock Compensation Plans

12 Months Ended

Dec. 31, 2022

Share-Based Payment Arrangement [Abstract]

Pursuant to the Company’s 2021 Stock Incentive Plan, as amended, the Company may issue stocks, stock options, restricted stock, RSUs including performance-based RSUs, stock purchase warrants, stock appreciation rights, phantom stock and dividend equivalents to eligible employees, non-employee directors, consultants, and other service providers of the Company and its subsidiaries. The Company has granted RSUs as its primary incentive awards. There were no outstanding awards other than RSUs as of December 31, 2022, 2021 and 2020. An aggregate of 17.1 million shares of common stock were authorized under the 2021 Stock Incentive Plan, and the total number of shares available for grant was approximately 4.9 million as of December 31, 2022.

The following table presents a summary of the total share-based compensation expense and the related net tax benefits (deficiencies) associated with the Company’s various employee share-based compensation plans for the years ended December 31, 2022, 2021 and 2020:



($ in thousands)	Year Ended December 31,
	2022		2021		2020
Stock compensation costs	$	37,601	$	32,567	$	29,237
Related net tax benefits (deficiencies) for stock compensation plans	$	5,293	$	1,760	$	(1,839)

Restricted Stock Units — RSUs are granted under the Company’s long-term incentive plan at no cost to the recipient. RSUs generally cliff vest after three years of continued employment from the date of the grant, and are authorized to settle predominantly in shares of the Company’s common stock. Certain RSUs are settled in cash. Dividends are accrued during the vesting period and are paid at the time of vesting. While a portion of RSUs are time-based vesting awards, others vest subject to the attainment of specified performance goals, referred to as “performance-based RSUs.” Performance-based RSUs are granted annually upon approval by the Company’s Compensation Committee based on the performance in the year prior to the grant date of the award. The number of awards that vests can range from zero to a maximum of 200% of the granted number of awards based on the Company’s achievement of specified performance criteria over a performance period of three years. For accounting on stock-based compensation plans, see Note 1 — Summary of Significant Accounting Policies — Significant Accounting Policies — Stock-Based Compensation to the Consolidated Financial Statements in this Form 10-K for additional information.

During the year ended December 31, 2022, the Company modified 31,523 time-based RSUs held by 119 foreign employees from vesting in cash to vesting in shares without changing any of the other terms. There was no incremental compensation expense recognized as a result of the modification as of December 31, 2022.

The following table presents a summary of the activities for the Company’s time-based and performance-based RSUs that will be settled in shares for the year ended December 31, 2022. The number of outstanding performance-based RSUs stated below reflects the number of awards granted on the grant date.



	Time-Based RSUs			Performance-Based RSUs
	Shares	Weighted- Average Grant Date Fair Value		Shares	Weighted- Average Grant Date Fair Value
Outstanding, January 1, 2022	1,329,946	$	52.65	369,731	$	54.28
Modified from cash-settled RSUs	31,523	77.28		—	—
Granted	444,359	78.15		91,874	77.91
Vested	(373,363)	53.07		(125,213)	54.64
Forfeited	(135,599)	63.15		(3,882)	77.91
Outstanding, December 31, 2022	1,296,866	$	60.77	332,510	$	60.40

The following table presents a summary of the activities for the Company’s time-based RSUs that are cash-settled for the year ended December 31, 2022. During 2022, the amount of cash paid to settle the vested RSUs was $318 thousand.



												Shares
Outstanding, January 1, 2022												32,647
Modified to share-settled RSUs												(31,523)
Granted												2,668
Vested												(3,471)
Forfeited												(321)
Outstanding, December 31, 2022												—

The weighted-average grant date fair value of the time-based RSUs granted during the years ended December 31, 2022, 2021, and 2020 was $78.15, $71.88, and $40.61, respectively. The weighted-average grant date fair value of the performance-based RSUs granted during the years ended December 31, 2022, 2021 and 2020 was $77.91, $77.67 and $39.79, respectively. The total fair value of time-based RSUs that vested during the years ended December 31, 2022, 2021 and 2020 was $30.0 million, $22.7 million and $11.5 million, respectively. The total fair value of performance-based RSUs that vested during the years ended December 31, 2022, 2021, and 2020 was $17.6 million, $15.4 million and $8.9 million, respectively.

As of December 31, 2022, there were $24.3 million of unrecognized compensation costs related to unvested time-based RSUs expected to be recognized over a weighted-average period of 1.79 years, and $13.8 million of unrecognized compensation costs related to unvested performance-based RSUs expected to be recognized over a weighted-average period of 1.76 years.

Employee Stock Purchase Plan — The 1998 Employee Stock Purchase Plan (the “Purchase Plan”) provides eligible employees of the Company the right to purchase shares of its common stock at a discount. Employees could purchase shares at 90% of the fair market price subject to an annual purchase limitation of $22,500 per employee. As of December 31, 2022, the Purchase Plan qualifies as a non-compensatory plan under Section 423 of the Internal Revenue Code and, accordingly, no compensation expense has been recognized. 2,000,000 shares of the Company’s common stock were authorized for sale under the Purchase Plan. During the years ended December 31, 2022 and 2021, 48,990 shares totaling $3.2 million and 37,725 shares totaling $2.6 million, respectively, were sold to employees under the Purchase Plan. As of December 31, 2022, there were 217,785 shares available under the Purchase Plan.