Quarterly report pursuant to Section 13 or 15(d)

Treasury Stock and Share Based Awards

v3.21.2
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

11.

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:

 

 

 

Number of

 

 

 

 

 

 

 

Treasury

 

 

 

 

 

 

 

Shares

 

 

Cost

 

Balance at January 1, 2021

 

 

5,050,981

 

 

$

87,004

 

Restricted stock withholdings (1)

 

 

378

 

 

 

12

 

Restricted stock forfeitures

 

 

41,482

 

 

 

 

Balance at June 30, 2021

 

 

5,092,841

 

 

$

87,016

 

 

 

(1)

The Company withheld restricted shares as a result of the election by certain employees to satisfy their tax liabilities upon vesting in restricted stock and restricted stock units.  The Company determined the number of shares to be withheld based upon market values ranging from $17.41 to $24.14 per share.

 

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:

 

 

 

Shares of

 

 

Weighted

Average

 

 

 

Restricted

 

 

Grant Date

 

 

 

Stock

 

 

Fair Value

 

Outstanding at January 1, 2021

 

 

1,431,975

 

 

$

21.11

 

Granted

 

 

1,050,348

 

 

$

21.38

 

Vested

 

 

(115,072

)

 

$

23.81

 

Forfeited

 

 

(41,482

)

 

$

18.19

 

Outstanding at June 30, 2021

 

 

2,325,769

 

 

$

21.15

 

Unvested restricted stock at June 30, 2021

 

 

2,325,769

 

 

$

21.15

 

 

 

 

Six Months Ended

June 30,

 

 

 

2021

 

 

2020

 

Compensation expense recognized during the period

 

$

8,946

 

 

$

5,403

 

Fair value of restricted shares that vested during the period

 

$

2,477

 

 

$

8,700

 

Income tax benefit (cost) related to restricted stock awards

 

$

55

 

 

$

2,620

 

 

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.

 

 

 

Six Months Ended June 30,

 

 

 

2021

 

 

2020

 

Number of restricted stock unit awards that vested during the period

 

 

15,230

 

 

 

117,500

 

Fair value of restricted stock unit awards that vested during the period

 

$

314

 

 

$

3,634

 

Accumulated dividends paid upon vesting of restricted stock unit awards

 

$

62

 

 

$

563

 

Compensation expense recognized during the period

 

$

1,629

 

 

$

3,029

 

Income tax benefit (cost) related to stock unit awards

 

$

(306

)

 

$

526

 

 

 

 

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.