XML 31 R20.htm IDEA: XBRL DOCUMENT v3.19.1
Stock-Based Compensation
 3 Months Ended
Mar. 31, 2019
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stock-Based Compensation Stock-Based Compensation
Long Term Incentive Compensation Plans
The Company’s 2018 Long Term Incentive Compensation Plan (the “2018 Plan”) permits it to issue stock options (incentive and/or non-qualified), stock appreciation rights (“SARs”), restricted stock, phantom stock units (“PSUs”) and other equity and cash awards to employees. Non-employee directors are eligible to receive all such awards, other than incentive stock options. Prior to the 2018 Plan, the Company had the 2008 Long Term Incentive Compensation Plan (the “2008 Plan”), which expired in June 2018. Although awards can no longer be granted under the 2008 Plan, it remains in place until all of the awards previously granted thereunder have been paid, forfeited or expired. As of March 31, 2019, there were 9,397,761 shares available for future grants under the 2018 Plan.
Share Repurchase Program
On January 9, 2019, the Company announced a new share repurchase program pursuant to which the Board of Directors authorized to repurchase up to $200 million of the Company’s common stock, which expires on December 31, 2020. The Company did not repurchase any shares of its common stock during the three months ended March 31, 2019.
Performance Share Program
On February 14, 2019, the Company’s Compensation Committee of the Board of Directors adopted a performance share program (the “Performance Share Program II”) pursuant to the 2018 Plan, which provides for the issuance of restricted stock awards with performance-based vesting conditions. An aggregate of 278,780 performance shares, at target, was granted on February 14, 2019, with the grant having a three-year award period consisting of three one-year performance periods and a three-year service period. The performance threshold for vesting of these awards is 50% of target and, based on the level of achievement, up to 150% of target.
Stock Options
The Company granted 1,307,015 and 661,175 stock options during the three months ended March 31, 2019 and 2018, respectively.
Stock-based Compensation Expense
Stock-based compensation expense, which pertains to our stock options, restricted stock, and other equity awards, for the three months ended March 31, 2019 and 2018 was $3.4 million and $2.9 million, respectively, and is included within the unaudited Condensed Consolidated Statements of Operations under “General and administrative.”
Stock Appreciation Rights
The fair value of SARs is calculated each reporting period and estimated using the Black-Scholes option pricing model. The Company’s SARs, which vest over a period of four years, are accounted for as liability awards since they will be settled in cash. Accordingly, the Company has a liability, which is included in “Accrued expenses and other current liabilities” within the unaudited Condensed Consolidated Balance Sheets, associated with its SARs of $8.6 million and $6.8 million as of March 31, 2019 and December 31, 2018, respectively.
For SARs held by employees of the Company, there was $9.6 million of total unrecognized compensation cost as of March 31, 2019 that will be recognized over the awards remaining weighted average vesting period of 2.98 years. For the three months ended March 31, 2019 and 2018, the Company recognized compensation expense of $3.0 million and a reduction to compensation expense of $4.0 million associated with these awards, respectively. Compensation expense associated with our SARs is recorded in “General and administrative” within the unaudited Condensed Consolidated Statements of Operations. Amounts paid by the Company for the three months ended March 31, 2019 and 2018 on these cash-settled awards was $1.2 million and $3.0 million, respectively.
Phantom Stock Units
The Company’s PSUs, which vest over a period of three to four years, entitle employees and directors to receive cash based on the fair value of the Company’s common stock on the vesting date. The PSUs are accounted for as liability awards and are re-measured at fair value each reporting period until they become vested with compensation expense being recognized over the requisite service period. The Company has a liability, which is included in “Accrued expenses and other current liabilities” within the unaudited Condensed Consolidated Balance Sheets, associated with its PSUs of $0.4 million and $1.7 million as of March 31, 2019 and December 31, 2018, respectively.
For PSUs held by employees and directors of the Company, there was $4.5 million of total unrecognized compensation cost as of March 31, 2019 that will be recognized over the awards remaining weighted average vesting period of 2.24 years. For the three months ended March 31, 2019 and 2018, the Company recognized $1.1 million and $0.1 million of compensation expense associated with these awards, respectively. Compensation expense associated with our PSUs is recorded in “General and administrative” within the unaudited Condensed Consolidated Statements of Operations. Amounts paid by the Company for the three months ended March 31, 2019 and 2018 on these cash-settled awards totaled $2.4 million and $4.1 million, respectively.