Equity Incentive Compensation Plans and Other Long-term Incentive Programs

3 Months Ended

Mar. 31, 2020

Share-based Payment Arrangement [Abstract]

Equity Incentive Compensation Plans and Other Long-term Incentive Programs

The Company maintains various stock-based compensation plans and other employee benefits as discussed below. Stock-based compensation is measured at the grant date based on the value of the awards, and the fair value is recognized on a straight-line basis over the requisite service period (usually the vesting period). Nonvested shares of common stock generally vest ratably over a three year service period, and nonvested shares of common stock units vest over a one year service period. Cash-based compensation is measured at fair value at each reporting date and is recognized on a straight-line basis over the requisite service period (usually the vesting period). Cash-based awards generally have a cliff vest of three years.

The following table presents the long-term equity and cash incentive compensation related to awards for the periods indicated:


	Three Months Ended March 31,
	2020		2019
	(in thousands)
Nonvested common stock ⁽¹⁾	$	1,150	$	1,796
Nonvested common stock units⁽¹⁾	280		294
Nonvested performance cash units ⁽²⁾⁽³⁾	(974)		632
Total	$	456	$	2,722

(1)Unrecognized compensation expense as of March 31, 2020 was $6.8 million, which related to grants of nonvested shares of common stock that are expected to be recognized over a weighted-average period of 1.9 years.

(2)The nonvested performance-based cash units are accounted for as liability awards with $0.2 million and $1.2 million in other noncurrent liabilities as of March 31, 2020 and December 31, 2019, respectively, in the Unaudited Consolidated Balance Sheets.

(3)Liability awards are fair valued at each reporting date. The expense for the period will increase or decrease based on updated fair values of these awards at each reporting date.

Nonvested Equity and Cash Awards. The following tables present the equity and cash awards granted pursuant to the Company's various stock compensation plans. A summary of the Company's nonvested common stock awards for the three months ended March 31, 2020 and 2019 is presented below:











	Three Months Ended March 31, 2020				Three Months Ended March 31, 2019
Nonvested Common Stock Awards	Shares	Weighted Average Grant Date Fair Value		Shares	Weighted Average Grant Date Fair Value
Outstanding at January 1,	2,968,497	$	3.81	2,912,166	$	5.27
Granted	2,028,617	1.14		1,835,700	2.64
Vested	(1,455,814)	4.25		(1,299,599)	5.19
Forfeited or expired	(9,488)	3.44		(16,487)	4.74
Outstanding at March 31,	3,531,812	2.10		3,431,780	3.90

A summary of the Company's nonvested common stock unit awards for the three months ended March 31, 2020 and 2019 is presented below:










	Three Months Ended March 31, 2020				Three Months Ended March 31, 2019
Nonvested Common Stock Unit Awards	Units	Weighted Average Grant Date Fair Value		Units	Weighted Average Grant Date Fair Value
Outstanding at January 1,	796,103	$	3.27	311,237	$	7.26
Granted	—	—		14,704	2.21
Vested	—	—		(14,704)	2.21

Outstanding at March 31,	796,103	3.27		311,237	7.26

A summary of the Company's nonvested performance-based cash unit awards for the three months ended March 31, 2020 and 2019 is presented below:












	Three Months Ended March 31, 2020				Three Months Ended March 31, 2019
Nonvested Performance-Based Cash Unit Awards	Units	Weighted Average Fair Value		Units	Weighted Average Fair Value
Outstanding at January 1,	2,576,062			909,585
Granted	3,569,434			2,026,521

Forfeited or expired	(49,266)			(67,472)
Outstanding at March 31,	6,096,230	$	0.19	2,868,634	$	2.21

Performance Cash Program

2020 Program. In February 2020, the Compensation Committee of the Board of Directors of the Company approved a performance cash program (the "2020 Program") granting performance cash units that will settle in cash and are accounted for as liability awards. The performance-based awards contingently vest in February 2023, depending on the level at which the performance goal is achieved. The performance goal, which will be measured over the three-year period ending December 31, 2022, will be the Company's total shareholder return ("TSR") based on a matrix measurement of (1) the Company's absolute performance and (2) the Company's ranking relative to a defined peer group's individual TSRs ("Relative TSR"). The Company's absolute performance is measured against the December 31, 2019 closing share price of $1.69. For the portion of the program based on absolute performance, the payout will be equal to the Company's absolute TSR up to 100%, which is the maximum payout for this portion. For the portion of the program based on relative performance (i) if the Company's Relative TSR is less than 30%, the payout is zero and (ii) if the Company's Relative TSR is 30% or greater, the payout is equal to the Company's percentile rank up to 100% of the original grant. The Company's combined absolute performance and Relative TSR have a maximum vest of up to 200% of the original grant.