STOCKHOLDERS' EQUITY

6 Months Ended

Jun. 30, 2022

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY

11. STOCKHOLDERS’ EQUITY

Stock Repurchase Programs

On February 28, 2022, the Company’s Board of Directors approved a stock repurchase program to acquire up to 200,000 shares of the Company’s outstanding common stock in the open market during the one-year period ending on February 28, 2023. As of June 30, 2022, the Company had repurchased all 200,000 shares of its common stock available under

this program for an aggregate of $12 million. Following their repurchase, these 200,000 shares ceased to be outstanding shares of common stock and are now treated as authorized but unissued shares of common stock.

During the six months ended June 30, 2021, the Company did not repurchase any shares of its common stock.

Stock Compensation Expense

During the six months ended June 30, 2022, the Company awarded 616,505 service-based restricted stock units with a weighted average grant date fair value per share of $68.79 as determined on the date of grant. Service-based restricted stock units typically vest ratably over three years provided that the participant is employed by the Company on each such vesting date.

During the six months ended June 30, 2022, the Company awarded 82,513 performance-based restricted stock units with pre-defined vesting criteria that permit a range from 0% to 150% to be earned. The fair market value of these awards is $72.42. If the performance targets are met, the restrictions will lapse (i.e., the awards will vest) with respect to the entire award on February 17, 2025, provided that the participant is employed by the Company on the vesting date.

For the three months ended June 30, 2022 and 2021, the Company recognized $9 million and $7 million in stock-based compensation expense, respectively. For the six months ended June 30, 2022 and 2021, the Company recognized $16 million and $13 million in stock-based compensation expense, respectively.

Dividends

During the three and six months ended June 30, 2022, the Company paid $11 million and $22 million, respectively, in dividends to its shareholders of common stock. On July 28, 2022, the Company’s Board of Directors declared a quarterly cash dividend of $0.21 per share on its common stock, payable on September 16, 2022, to stockholders of record at the close of business on August 12, 2022.