Long-term Compensation Plans

12 Months Ended

Dec. 31, 2020

Share-based Payment Arrangement [Abstract]

LONG-TERM COMPENSATION PLANSIn June 2014, the Company's stockholders adopted the 2013 Plan, which is administered by the compensation committee of the Board of Directors of the Company, except as otherwise expressly provided in the 2013 Plan. The Board approved a maximum of 15,500,000 shares of common stock, which were reserved and made available for issuance under the 2013 Plan.

For 2020, 2019 and 2018, compensation expense associated with the Company's long-term compensation plans was as follows:


	Year Ended December 31,
(dollars in millions)	2020		2019		2018
Equity classified RSUs	$	4.2	$	12.6	$	13.9
Liability classified RSUs	0.9		(1.0)		0.7
Stock options	0.9		0.2		0.8
Compensation expense from continuing operations	6.0		11.8		15.4
Compensation expense from discontinued operations	—		0.6		3.9
Total	$	6.0	$	12.4	$	19.3

Unrecognized compensation expense for awards expected to vest	$	9.5
Weighted average remaining vesting period (months)	18

At December 31, 2020, a total of 4,238,736 shares of common stock had been issued, and 4,939,688 RSUs and stock options were outstanding under the 2013 Plan.


	Total	RSUs		Stock Options
		Equity Classified	Liability Classified
Outstanding at December 31, 2019	4,833,766	4,189,660	295,097	349,009
Granted	1,743,117	1,500,783	—	242,334
Exercised/Issued	(785,489)	(647,238)	(118,039)	(20,212)
Cancelled	(123,982)	(118,471)	—	(5,511)
Forfeited	(727,724)	(727,724)	—	—
Outstanding at December 31, 2020	4,939,688	4,197,010	177,058	565,620

The total fair value of RSUs which vested during 2020, 2019 and 2018 was $9.7 million, $18.5 million and $9.9 million respectively, based on vesting date stock price.

Equity Classified RSUs

The Company granted the following equity classified RSUs under the 2013 Plan:


Year of Issuance:	RSUs	Weighted Average Grant Date Fair Value		Weighted Average Vesting Period (months)
2020	1,500,783	$	11.45	32
2019	3,404,362	$	11.14	44
2018	1,581,444	$	10.35	26

Certain of the RSUs granted during the period contain performance vesting conditions in addition to a service vesting condition. RSUs granted with service or performance vesting conditions were valued at the grant date stock price. Certain RSUs with performance vesting conditions also contain provisions for additional share awards in the event certain performance conditions are met at the end of certain applicable measurement periods. These conditions are generally based on Adjusted EBITDA and adjusted earnings per share. The Compensation Committee granted to certain key executives performance-based RSUs with vesting that is subject to the achievement by the Company of a certain performance target in any fiscal year ending on or before December 31, 2022, and continuous service. There were 2.3 million of these RSUs outstanding as of December 31, 2020 with a weighted-average grant date fair value of $25.1 million. The Company is currently not recognizing compensation expense for these awards as the achievement of this performance target is not probable.

At December 31, 2020, the following equity classified RSUs were outstanding:


	December 31, 2020
Vesting Conditions:	Outstanding	Weighted Average Remaining Vesting Period (months)	Potential Additional Awards
Service-based	451,499	13	—
Performance-based	3,745,511	20	1,049,727
Total	4,197,010	20	1,049,727

For all equity classified RSUs, shares are issued upon satisfaction of vesting conditions.

Liability Classified RSUs

During 2014, the Company granted to certain employees RSUs, which vested on December 31, 2020. These RSUs were subject to an Adjusted EBITDA performance condition and a share price market condition. Additionally, the number of shares of common stock issued was limited to a maximum cash value, requiring these awards to be classified as liabilities. Compensation expense was calculated based on a market value that was remeasured each reporting period.

Stock Options

The Company granted the following qualified and non-qualified stock options under the 2013 Plan:


Year of Issuance:	Stock Options	Weighted Average Strike Price Per Share		Weighted Average Grant Date Fair Value Per Share
2020	242,334	$	12.25	$	4.47
2019	229,724	$	11.28	$	5.15

Stock options vest ratably over a three-year period and have contractual lives of ten years from the grant date.

The fair value of the grants is calculated using the Black-Scholes option pricing model at the grant date. The following table provides the range of assumptions used in valuing stock options for the years ended December 31, 2020 and 2019, as there were no stock options granted in 2018:


	Year Ended December 31,
	2020	2019
Weighted average expected term (years) (1)	6.0	6.0
Expected volatility (2)	35.5%	44.2%
Risk-free rate (3)	1.45%	2.48%
Expected dividend yield	—%	—%

(1) Weighted average expected term is calculated based on the simplified method for plain vanilla options.

(2) Expected volatility is calculated based on a blend of the implied and historical equity volatility of an index of comparable companies over a period equal to the expected term.

(3) Risk-free rate of return is based on an interpolation of U.S. Treasury rates to reflect an expected term of six years at the date of grant.

At December 31, 2020, there were no outstanding stock options which were vested and out-of-the-money. There were 184,053 outstanding stock options which were vested and in-the-money, with an aggregate intrinsic value of $1.2 million, and 381,567 outstanding stock options which were unvested, with an aggregate intrinsic value of $2.2 million.