Note 8 - Stock-based Compensation

9 Months Ended

Sep. 30, 2024

Notes to Financial Statements

Share-Based Payment Arrangement [Text Block]

8. Stock-based Compensation

We recognize compensation expense for stock-based payment awards made to our employees, consultants and directors. The following table provides our stock-based compensation expense and related income tax benefit for the three and nine-month periods ended September 30, 2024 and 2023 (in millions):

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2024			2023			2024			2023
Stock-based compensation expense, gross	$	5		$	5		$	17		$	14
Income tax benefit at our statutory rate associated with share-based compensation		(1	)		(1	)		(4	)		(4	)
Stock-based compensation expense, net	$	4		$	4		$	13		$	10

All shares of Class A common stock and common stock underlying outstanding restricted stock units and performance awards are counted as issued at target levels under the 2022 EICP for purposes of determining the number of shares available for future issuance.

A summary of restricted Class A common stock, common stock and restricted stock units activity for the nine-month periods ended September 30, 2024 and 2023 is as follows:

	Nine Months Ended
	September 30, 2024					September 30, 2023
				Weighted-					Weighted-
				average					average
				Grant Date					Grant Date
	Number of			Fair Value		Number of			Fair Value
	Shares			Per Share		Shares			Per Share
Restricted stock - common:
Outstanding - beginning of period (1)		1,467,936		$	12.17		997,745		$	20.62
Granted(1)		1,785,958		$	7.47		1,007,919		$	8.15
Vested		(480,412	)	$	11.23		(461,953	)	$	20.27
Forfeited		(130,000	)	$	8.10		-		$	-
Outstanding - end of period (1)		2,643,482		$	9.36		1,543,711		$	12.58
Restricted stock - Class A common:
Outstanding - beginning of period (1)		1,148,233		$	12.37		677,238		$	19.36
Granted(1)		823,393		$	8.25		738,854		$	8.34
Vested		(318,733	)	$	13.17		(203,986	)	$	18.76
Outstanding - end of period (1)		1,652,893		$	10.16		1,212,106		$	12.74
Restricted stock units - common stock:
Outstanding - beginning of period		587,168		$	11.50		274,145		$	23.60
Granted		1,229,390		$	5.72		587,168		$	11.50
Vested		(564,793	)	$	11.50		(247,953	)	$	23.64
Forfeited		(22,375	)	$	11.50		(26,192	)	$	23.15
Outstanding - end of period		1,229,390		$	5.72		587,168		$	11.50

(1) For awards subject to future performance conditions, amounts assume target performance.