XML 27 R14.htm IDEA: XBRL DOCUMENT v3.23.2
Stock-Based Compensation Plans
 6 Months Ended
Jun. 30, 2023
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation Plans Stock-Based Compensation Plans
Employee Stock Purchase Plan
Shares issued under the 2017 Employee Stock Purchase Plan during the six months ended June 30, 2023 and 2022, totaled 65,770 and 70,242, respectively.

Stock Options
A summary of stock option activity is as follows:
Number of
Shares		Weighted Average
Exercise Price ($)		Weighted Average
Remaining Contractual
Term (Years)		Aggregate Intrinsic Value
of In-the-Money
Options ($)
Outstanding as of December 31, 20221,221,219 $19.00 
Exercised(150,199)19.10 
Expired(4,614)19.63 
Outstanding as of June 30, 20231,066,406 $18.98 2.20$8,530,772 
Exercisable as of June 30, 20231,066,406 $18.98 2.20$8,530,772 

The total intrinsic value of stock options exercised during the six months ended June 30, 2023 and 2022, was $0.8 million and $1.1 million, respectively. There were no stock options granted during the six months ended June 30, 2023 or 2022.

Performance Share Awards
During the six months ended June 30, 2023, pursuant to the Company's 2020 Equity and Incentive Compensation Plan, the Company granted performance share awards with a total shareholder return multiplier. These performance awards are earned based upon achievement, over a specified period that must not be less than one year and is typically a three-year performance period, of performance goals related to (i) net revenue growth and (ii) net adjusted EBITDA margin over the performance period as determined by the Company with a TSR multiplier up to plus or minus 20%. Up to 200% of the performance shares could be earned upon achievement of the performance goals, including the multiplier. On a quarterly basis, management evaluates the probability that the threshold performance goals will be achieved, if at all, and the anticipated level of attainment to determine the amount of compensation expense to record in the consolidated financial statements.
A summary of nonvested total shareholder return awards ("TSRs") is as follows:
Number of
Shares		Weighted Average
Grant Date Fair Value
Nonvested as of December 31, 20221,011,881 $39.21 
Granted233,404 26.94 
Forfeited(112,661)41.08 
Change in payout rate(427,685)30.01 
Nonvested as of June 30, 2023704,939 $40.43 

As of June 30, 2023, the TSRs granted in 2020 were earned by the employees. However, the performance goals were not met and no shares were issued.
The fair value of TSRs granted during the six months ended June 30, 2023 and 2022, were estimated on the date of grant using the Monte Carlo simulation model, acceptable under ASC 718, Compensation - Stock Compensation, using the following weighted average assumptions:
Six months ended June 30,
20232022
Expected life (years)2.93.1
Risk-free interest rate3.6 %1.5 %
Expected volatility37.1 %40.0 %
Expected dividend yield— — 

Restricted Share Units
A summary of nonvested restricted share unit awards ("RSUs") is as follows:
Number of
Shares		Weighted Average
Grant Date Fair Value
Nonvested as of December 31, 20221,184,024 $30.73 
Granted1,453,429 24.76 
Vested(438,542)30.08 
Forfeited(273,607)29.24 
Nonvested as of June 30, 20231,925,304 $26.59 

During the six months ended June 30, 2023, a total of 438,542 RSUs vested. The Company withheld 127,898 of those shares to pay the employees’ portion of the minimum payroll withholding taxes.

As of June 30, 2023, there were unrecognized compensation costs of $45.5 million and $12.6 million related to nonvested RSUs and TSRs, respectively, which the Company expects to recognize over weighted average periods of 2.5 years and 2.0 years, respectively.
The Company recorded stock-based compensation expense recognized under ASC 718 for the three months ended June 30, 2023 and 2022, of $5.4 million and $6.8 million, respectively, with corresponding tax benefits of $1.0 million and $0.9 million, respectively. The Company recorded stock-based compensation expense recognized under ASC 718 for the six months ended June 30, 2023 and 2022, of $10.7 million and $14.8 million, respectively, with corresponding tax benefits of $2.0 million and $2.1 million, respectively.