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Subsequent Events
6 Months Ended
Jun. 30, 2022
Subsequent Events [Abstract]  
Subsequent Events

Note 18 - Subsequent Events

 

On July 15, 2022, the Board, acting upon the unanimous recommendations of its compensation committee and a special committee of disinterested directors, approved a modification to outstanding Exit-Vesting awards to provide for an additional service-based vesting opportunity (the “Modified Awards”). Under the original terms of the Exit Vesting awards, such awards generally vest, subject to the award holder’s continued employment through the vesting date, upon achievement of certain performance conditions in which affiliates of Blackstone receive cash proceeds in respect of their common equity in the Company and its subsidiaries that meet certain specified multiples on their investment and a specified internal rate of return. The Modified Awards will, in addition to continuing to be eligible to vest pursuant to the original terms, now also provide for vesting in 36 equal installments, with the first installment vesting on August 29, 2022, and subsequent installments vesting on each of the next 35 monthly anniversaries of August 29, 2022, subject to the award holder’s continued employment through each applicable vesting date and subject to other terms and conditions of the award.

 

We account for our stock-based awards in accordance with provisions of ASC 718, Compensation—Stock Compensation (“ASC 718”) which includes guidance for accounting for a modification of existing stock-based compensation awards. The Company currently estimates that it will incur incremental non-cash stock-based compensation expense associated with the Modified Awards of

approximately $34-$39 million, of which approximately 70% of the expense is expected to be recognized in the next twelve months. The expense recognition timing would change if the performance conditions as described above are met.

 

Determining the estimated incremental non-cash stock-based compensation expense, including the fair value of our Modified Awards, requires judgment. Management has considered numerous objective and subjective factors to determine the best estimate of the incremental non-cash stock-based compensation expense. Changes in any of these estimates and assumptions may have a material impact to our estimates and result in total incremental non-cash stock-based compensation expense that is materially different from this estimated range.