Stock-based Compensation

9 Months Ended

Sep. 30, 2021

Share-based Payment Arrangement [Abstract]

Stock-based Compensation

STOCK-BASED COMPENSATION

During the three and nine months ended September 30, 2021 and 2020, we recognized expenses of $3.9 million, $11.7 million, $4.7 million and $15.9 million, respectively, in stock-based compensation, which was allocated between costs of goods sold and selling, general and administrative expenses on the condensed consolidated statements of operations. We recognized tax benefits on stock-based compensation of $0.5 million, $1.2 million, $0.1 million, and $1.6 million for the three and nine months ended September 30, 2021 and 2020, respectively.

2021 Activity

A summary of award activity by type for the nine months ended September 30, 2021 is presented below.

Stock Options	Awards (in millions)	Weighted- Average Exercise Price		Aggregate Intrinsic Value  (in millions)		Weighted Average Remaining Contractual Life (years)
Outstanding at January 1, 2021	2.5	$	27.34
Granted	—	$	—
Exercised	(0.5)	$	28.26
Forfeited / Expired	(0.4)	$	31.92
Outstanding at September 30, 2021	1.6	$	25.65
Vested and expected to vest at September 30, 2021	1.6	$	25.65	$	6.4	5.14
Exercisable at September 30, 2021	1.4	$	25.50	$	6.0	4.86

Cash received by the Company upon exercise of options for the nine months ended September 30, 2021 was $14.1 million. Tax shortfall expenses on these exercises were $0.5 million.

At September 30, 2021, there was $0.2 million of unrecognized expense relating to unvested stock options that is expected to be amortized over the weighted average period of 0.5 years.

Restricted Stock Awards and Restricted Stock Units (1)	Awards/Units (millions)	Weighted-Average Fair Value
Outstanding at January 1, 2021	1.0	$	28.84
Granted	0.6	$	28.85
Vested	(0.4)	$	29.04
Forfeited	(0.1)	$	28.92
Outstanding at September 30, 2021	1.1	$	28.75

(1)    As of September 30, 2021, there are no restricted stock awards outstanding and only restricted stock units remain.

Tax shortfall expenses on the vesting of restricted stock awards and restricted stock units during the nine months ended September 30, 2021 was $0.1 million.

At September 30, 2021, there was $16.2 million of unamortized expense relating to unvested restricted stock units that is expected to be amortized over a weighted average period of 1.6 years.

Performance Stock Awards and Performance Share Units (1)	Awards/Units (millions)	Weighted-Average Fair Value
Outstanding at January 1, 2021	0.5	$	31.07
Granted	0.4	$	29.53
Vested	—	$	—
Forfeited	(0.2)	$	31.84
Outstanding at September 30, 2021	0.7	$	30.11

(1)    As of September 30, 2021, there are no performance stock awards outstanding and only performance share units remain.

Our performance stock awards and performance share units allow for participants to vest in more or less than the targeted number of shares granted. All of our performance awards are currently performing below the applicable targets. We currently expect a total of 0.4 million shares with a weighted average fair value per share of $29.74 to vest at the respective vesting dates for such awards. At September 30, 2021, there is $8.9 million of unamortized expense relating to unvested performance share units that is expected to be amortized over a weighted average period of 2.3 years. The forfeitures include performance stock awards and performance share units that vested below threshold payout.