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Stock-Based Compensation
11 Months Ended
Nov. 30, 2020
Share-based Payment Arrangement [Abstract]  
Stock-Based Compensation Stock-Based Compensation
Below is a description of stock compensation relating to the Predecessor periods (2019 and the eleven months ended November 30, 2020). All stock compensation plans and awards in effect during the Predecessor periods were cancelled on the Effective Date and no new stock compensation plans have been adopted by the Successor as of December 31, 2020.
Restricted Stock Units - Predecessor
The Predecessor awarded restricted stock units ("RSUs") to employees and directors as part of its long-term compensation program. The awards vested over a three-year period, with specific terms of vesting determined at the time of grant. The Predecessor determined the fair value of granted RSUs based on the market price of the Class A voting common stock of the Predecessor on the date of grant. RSUs were paid in Class A voting common stock or cash (see below) after the vesting of the applicable RSU. Compensation expense for granted RSUs was recognized over the vesting period. For the eleven months ended November 30, 2020 and the year ended December 31, 2019, the Predecessor recognized $(1.2) million and $2.6 million, respectively, of stock-based compensation costs for RSUs.
The Predecessor offered cash settlement to all employees for vested RSUs and, as a result of this modification, the RSU awards are classified as a liability on the Predecessor's balance sheet in accordance with ASC 718, Compensation – Stock Compensation. The liability for RSUs on the accompanying consolidated balance sheet as of December 31, 2019 was $1.8 million.
The following is a summary of the Predecessor's RSU activity:
SharesWeighted Average Fair Value per Share
Outstanding non-vested RSUs at December 31, 2019 (Predecessor)1,849,676 $4.04 
Granted— — 
Vested(866,800)0.64 
Forfeited(102,623)— 
Cancelled(880,253)$3.41 
Outstanding non-vested RSUs at November 30, 2020 (Predecessor)— $— 
In connection with the Company's emergence from bankruptcy, all RSUs outstanding as of November 30, 2020 were cancelled and there was no remaining compensation cost to be recognized in future periods related to nonvested restricted stock arrangements.
Stock Appreciation Rights - Predecessor
The Predecessor granted awards of stock appreciation rights (“SARs”) to employees and directors as part its long-term compensation program. The awards vested over a three-year period, with specific terms of vesting determined at the time of grant, and expired five years after the date of issuance. The SARs were granted with a strike price equal to the fair market value at the time of grant, which was generally defined as the closing price of the Predecessor's common stock on the NASDAQ on the date of grant.  SARs were paid in cash or common stock at holder’s election once the SAR vested. For the eleven months ended November 30, 2020 and the year ended December 31, 2019, the Predecessor recognized $(0.6) million and $(0.1) million, respectively, of stock-based compensation costs for SARs. The liability for SARs on the accompanying consolidated balance sheet as of December 31, 2019 was approximately $0.6 million.
As of December 31, 2019, there was $0.1 million of total compensation cost to be recognized in future periods related to non-vested SAR grants. The cost was expected to be recognized over a weighted-average period of 0.7 years.
The following is a summary of the Predecessor's SARs activity:
SharesWeighted Average Exercise Price Per ShareWeighted Average Remaining Contractual Term
(in years)
Outstanding at December 31, 2019 (Predecessor)1,010,000 $6.30 2.5
SARs vested and exercisable at December 31, 2019 (Predecessor)606,250 6.65 2.4
Granted— — — 
Vested198,750 — — 
Exercised— — — 
Forfeited— — — 
Cancelled(805,000)6.79 1.4
Outstanding at November 30, 2020 (Predecessor)— $— — 
SARs vested and exercisable at November 30, 2020 (Predecessor)— $— — 
In connection with the Company's emergence from bankruptcy, all SARs outstanding as of November 30, 2020 were cancelled.