Treasury Stock and Share Based Awards
|6 Months Ended|
Jun. 30, 2021
|Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]|
|Treasury Stock and Share Based Awards||
Treasury Stock — Treasury stock represents shares of common stock repurchased or withheld by the Company and not yet retired. The Company has applied the cost method in recording its treasury shares. Below is a summary of the Company’s treasury stock activity for the six months ended June 30, 2021:
As of June 30, 2021, the Company had no plans to retire any shares of treasury stock.
Restricted Stock – During the six months ended June 30, 2021, the Company granted 1,050,348 shares of its restricted stock to its employees and directors. The fair value of the restricted stock granted was determined based on the closing price of the Company’s
common stock on the day preceding the grant date, which ranged from $21.01 to $23.98 per share. The Company assumed forfeiture rates for the restricted stock awards that ranged from 0% to 10%. Certain of the restricted stock awards vested immediately on the grant date while others vest over periods ranging from one to four years. The recipients of restricted stock are entitled to receive non-forfeitable dividends and to vote their respective shares, however, the sale and transfer of the restricted shares is prohibited during the restriction period.
Below is a summary of restricted stock activity for the six months ended June 30, 2021:
As of June 30, 2021, the estimated remaining unrecognized compensation expense related to unvested restricted stock awards was $32,908 and the weighted average period over which this remaining compensation expense will be recognized is approximately two years.
Restricted Stock Units – The Company did not grant any restricted stock units during the six months ended June 30, 2021.
During the six months ended June 30, 2021, the Compensation Committee of the Company’s Board of Directors evaluated the impact of the COVID-19 pandemic on the performance metric used for the restricted stock unit awards granted during February 2019 and February 2020 and determined that the COVID-19 pandemic significantly impacted the Company’s ability to meet the performance metric. The Compensation Committee made a discretionary decision to certify the vest of the 2019 and 2020 restricted stock unit awards at target based upon the unforeseen, external circumstances beyond management’s control, the projected macroeconomic conditions through 2021 and beyond, and the uncertain timing as to the recovery of the Company’s industry.
As of June 30, 2021, the estimated remaining unrecognized compensation expense related to outstanding restricted stock unit awards was $8,388. The weighted average period over which this remaining compensation expense will be recognized is approximately 2 years. As of June 30, 2021, the Company had restricted stock units outstanding that represented a total of 561,041 hypothetical shares of common stock, net of forfeitures, reflecting actual certified performance levels for all grants outstanding.
The entire disclosure for share-based payment arrangement.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef