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Stock Incentive Plans and Stock Purchase Plans
6 Months Ended
Jun. 30, 2026
Share-Based Payment Arrangement [Abstract]  
Stock Incentive Plans and Stock Purchase Plans

10. Stock Incentive Plan and Stock Purchase Plans:

 

On May 7, 2026, the Company’s shareholders approved the Company’s Second Amended and Restated 2008 Incentive
Compensation Plan (the “Plan”). The amendment, among other things, increased the number of shares of the Company's common

stock available for issuance under the Plan by 8,000,000 shares. The Plan provides for grants of stock options, stock appreciation rights, restricted stock, deferred stock, and other stock related awards and performance awards that may be settled in cash, stock or other property.

 

Under the Plan, options to purchase shares of common stock may be granted at a price not less than the fair market value of the shares on the date of grant. The options must be exercised within 10 years from the date of grant and generally become exercisable on a pro rata basis over a three-year period from the date of grant. The Company issues new shares of its common stock upon exercise of its stock options. Restricted stock awards generally vest over periods of three years upon the fulfillment of specified service-based conditions and in certain instances performance-based conditions. Deferred stock awards generally vest upon the satisfaction of specified market or performance-based conditions and service-based conditions. The fair value of restricted stock is determined and fixed based on the Company’s stock price on the date of grant. The fair value of deferred stock awards are estimated using a Monte Carlo option model. The Company recognizes compensation expense related to its restricted stock and deferred stock awards ratably over the corresponding vesting periods. During the six months ended June 30, 2026, the Company granted 1.4 million shares of restricted stock and 0.1 million of market-based deferred stock awards under the Plan. At June 30, 2026, the Company had 7.1 million shares available for future grants and awards under the Plan.

 

Under the Company’s Amended and Restated 1996 Non-Qualified Employee Stock Purchase Plan, as amended (the “ESPP”), employees are permitted to purchase the Companys common stock at 85% of market value on January 1st, April 1st, July 1st and October 1st of each year. Under the Company’s 2015 Non-Qualified Stock Purchase Plan (the “SPP”), certain eligible non-employee service providers are permitted to purchase the Company’s common stock at 90% of market value on January 1st, April 1st, July 1st and October 1st of each year.

 

The Company recognizes stock-based compensation expense for the discount received by participating employees and non-employee service providers. During the six months ended June 30, 2026, the Company issued approximately 0.1 million shares under the ESPP. At June 30, 2026, the Company had approximately 1.2 million shares reserved for issuance under the ESPP.

 

During the three and six months ended June 30, 2026, the Company recognized stock-based compensation expense of $4.9 million and $8.6 million, respectively. In addition, during the three and six months ended June 30, 2026, the Company recognized an additional $0.2 million and $1.1 million, respectively, of stock-based compensation related restructuring expense. Stock-based compensation related restructuring expense is included in transformational and restructuring related expenses in the Consolidated Statements of Income and Comprehensive Income.

 

During the three and six months ended June 30, 2025, the Company recognized stock-based compensation expense of $2.0 million and $4.3 million, respectively. In addition, during the three and six months ended June 30, 2025, the Company recognized an additional $1.9 million and $3.3 million, respectively, of stock-based compensation related restructuring expense.

 

During the first quarter of 2026, certain affiliated physicians received stock-price based unit awards. The stock-price based unit awards vest over a three-year period upon the fulfillment of specified service-based conditions. The stock-price based unit awards are accounted for as liability awards as they are based upon the Company’s stock performance and will be settled in cash. As a result, the liability will be adjusted to reflect fair value at the end of each reporting period. During the three and six months ended June 30, 2026, the Company recognized $7.0 million and $8.4 million of compensation expense, respectively, related to these awards.