Stock-Based Compensation

9 Months Ended

Sep. 30, 2020

Stock-Based Compensation [Abstract]

Stock-Based Compensation

12. Stock-Based Compensation

During the three months ended September 30, 2020 and 2019, we did not grant any restricted stock units (which we refer to as “RSUs”) or performance share units (which we refer to as “PSUs”). During the nine months ended September 30, 2020 and 2019, we granted RSUs covering 0.4 million and 0.6 million shares of common stock, respectively, with a grant date fair value of $30.43 per share and $23.85 per share, respectively, that vest over a three year period. During the nine months ended September 30, 2020 and 2019, we also granted PSUs covering up to 0.3 million and 0.3 million shares of common stock, respectively, assuming maximum level of performance, with a grant date fair value of $26.38 per share and $22.01 per share, respectively. Granted PSUs are subject to both service and performance vesting conditions. The quantity of shares that will ultimately vest for the PSUs ranges from 0% to 250% of a targeted number of shares for each participant and will be determined based on an achievement of a three year pre-tax income performance goal.

A summary of our outstanding RSUs and PSUs, assuming current estimated level of performance achievement, are as follows (in thousands, except years):

	As of September 30, 2020
Unvested units		1,463
Unrecognized compensation cost	$	17,335
Remaining period to recognize compensation cost		1.81 years

During the three months ended September 30, 2020 and 2019, we recognized stock-based compensation expense of $5.8 million and $3.9 million, respectively. During the nine months ended September 30, 2020 and 2019, we recognized stock-based compensation expense of $14.4 million and $11.4 million, respectively. Stock-based compensation expense is included in selling, general, and administrative expense on our condensed consolidated statements of operations.

During the three months ended September 30, 2020, we updated our recognition of stock-based compensation expense associated with previously granted PSU awards to reflect probable financial results as they relate to the performance goals of the awards. Accordingly, our estimate of the number of shares which will ultimately vest under our PSU awards increased by 30 thousand, and we recorded a cumulative catch-up adjustment to increase stock-based compensation expense of $0.6 million ($0.4 million net of tax), or $0.02 per basic share and $0.01 per diluted share for the three and nine months ended September 30, 2020, respectively.