Share-Based Compensation

9 Months Ended

Sep. 30, 2020

Share-based Payment Arrangement [Abstract]

SHARE-BASED COMPENSATION

The Company has an incentive award plan pursuant to which the Company has granted restricted share units (“RSUs”) and restricted share awards either fully vested, with service conditions or with service and market performance conditions based on the market price of the Company’s Class A common shares. Awards with a service condition generally vest over a three-year period or in the case of non-employee directors over one year. Awards with a service and market performance condition generally vest at the end of a three-year period. Restricted share awards entitle the holders to non-forfeitable distributions and to vote the underlying Class A common share during the restricted period. As of September 30, 2020, there were 4,689,214 remaining Class A common shares available for future issuance under the Incentive Award Plan.

The Company estimates the fair value of restricted share awards with a service condition based on the closing market price of the Company’s Class A common shares on the award’s grant date. The grant date fair value of awards with a market condition are determined using a Monte-Carlo approach.

In January 2020, the Company reacquired vested RSUs and restricted Class A common shares for $5.5 million for the purpose of settling tax withholding obligations of employees. The reacquisition cost is based on the fair value of the Company’s Class A common shares on the date the tax obligation is incurred.

The following table summarizes share-based equity compensation activity for the nine months ended September 30, 2020:


	Share-Based Awards (in thousands)	Weighted- Average Grant Date Fair Value
Nonvested at January 1, 2020	3,011	$	9.02
Granted	677	$	8.09
Forfeited	(313)	$	6.93
Vested	(1,085)	$	12.57
Nonvested at September 30, 2020	2,290	$	7.35

Share-based compensation expense was $2.8 million and $8.7 million for the three and nine months ended September 30, 2020, respectively and $3.4 million and $10.2 million for the three and nine months ended September 30, 2019, respectively. Share-based compensation expense is included in selling, general, and administrative expenses in the accompanying condensed consolidated statements of operations. Approximately $8.8 million of total unrecognized compensation cost related to non-vested awards is expected to be recognized over a weighted–average period of 1.3 years from September 30, 2020. The estimated fair value at vesting of share-based awards that vested during the nine months ended September 30, 2020 was $8.6 million.