Stock-based Compensation

12 Months Ended

Dec. 31, 2023

Share-Based Payment Arrangement [Abstract]

Stock-based Compensation

Stock-based Compensation

Holdings’ equity incentive plan provides for the issuance of various stock-based awards. Under its current plan, Holdings has issued restricted stock awards. The equity plan currently allows for the issuance of 7,612,000 awards, as adjusted for cancelled or forfeited awards through December 31, 2023. As of December 31, 2023, Holdings has capacity to issue 1,477,956 stock-based awards under its equity plan. The equity plan allows for authorized but previously unissued shares or shares previously issued and outstanding and reacquired by Holdings to satisfy these awards.

The Company measures the compensation costs of stock-based compensation arrangements based on the grant-date fair value and recognizes the costs over the period during which employees are required to provide services. Restricted stock awards are valued using the closing market price of Holdings’ stock on the date of grant. The restricted stock awards generally vest over three to four years. Forfeitures are recognized as they occur.

Transactions related to restricted stock awards are as follows:

	Shares	Weighted Average Grant Date Fair Value
	(share amounts in thousands)
Unvested balance, January 1, 2023	4,622	$	26.99
Granted	1,651	29.06
Vested	(1,750)	19.36
Forfeited	(12)	26.75
Unvested balance, December 31, 2023	4,511	$	30.71

For the years ended December 31, 2021, 2022, and 2023, the weighted average grant date fair values of restricted stock awards granted were $38.59, $28.41, and $29.06, respectively. For the years ended December 31, 2021, 2022, and 2023, the fair values of restricted stock awards vested were $27.6 million, $24.6 million, and $33.9 million, respectively.

Stock compensation expense recognized by the Company is as follows:

	For the Year Ended December 31,
	2021		2022		2023
	(in thousands)
Stock compensation expense:
Included in general and administrative	$	24,598	$	30,555	$	36,041
Included in cost of services	6,342		7,200		7,768
Total	$	30,940	$	37,755	$	43,809

Future stock compensation expense based on current stock-based awards is estimated to be as follows:

	2024		2025		2026		2027
	(in thousands)
Stock compensation expense	$	40,830	$	25,019	$	10,884	$	1,418