Stock-Based Compensation

6 Months Ended

Jun. 30, 2022

Share-Based Payment Arrangement [Abstract]

Stock-Based Compensation

Stock-Based Compensation

The Company grants stock-based compensation awards as an incentive for employees and directors to contribute to the Company’s long-term success. The Company currently awards stock-settled stock appreciation rights, service-based and performance-based restricted stock units, and common stock equivalents. As of June 30, 2022, the Company had 3.9 million shares of its common stock, par value $0.0005 per share, (the “Common Stock”) available for stock-based compensation awards under its current Long-Term Incentive Plan as amended and restated in January 2019 (the “Plan”).

The tables below summarize the Company’s stock-based compensation expense by award type and expense category line item during the periods indicated (in millions).

	Three Months Ended				Six Months Ended
	June 30,				June 30,
Award type	2022		2021		2022		2021
Stock appreciation rights	$	2.5	$	2.0	$	4.4	$	4.0
Restricted stock units (2)	21.8		24.0		51.8		57.9
Common stock equivalents	0.2		0.2		0.4		0.4
Total (1)	$	24.5	$	26.2	$	56.6	$	62.3

	Three Months Ended				Six Months Ended
	June 30,				June 30,
Expense category line item	2022		2021		2022		2021
Cost of services and product development	$	7.9	$	8.0	$	19.4	$	21.7
Selling, general and administrative	16.6		18.2		37.2		40.6
Total (1) (2)	$	24.5	$	26.2	$	56.6	$	62.3

(1)Includes costs of $8.1 million and $11.3 million during the three months ended June 30, 2022 and 2021, respectively, and $27.3 million and $32.8 million during the six months ended June 30, 2022 and 2021, respectively, for awards to retirement-eligible employees. Those awards vest on an accelerated basis.

(2)On February 5, 2020, prior to the COVID-19 related shutdown in the U.S., the Compensation Committee (“Committee”) of the Board of Directors of the Company established performance measures for the performance-based restricted stock units (the “PSUs”) awarded to the Company’s executive officers in 2020 under the Plan. Based on preliminary corporate performance results for the 2020 performance measures, the 2020 PSUs would have been earned at 50% of target. However, on February 3, 2021, the Committee determined to use its discretion under the Plan to approve a payout at 95% of target. In deciding to exercise this discretion to adjust the PSU payout, the Committee considered the Company’s strong overall performance in 2020 despite the significant negative impact of the COVID-19 pandemic. As a result of the modification, the Company recognized $6.5 million of incremental compensation cost during the six months ended June 30, 2021.