Quarterly report pursuant to Section 13 or 15(d)

Treasury Stock and Share Based Awards (Tables)

v3.22.1
Treasury Stock and Share Based Awards (Tables)
3 Months Ended
Mar. 31, 2022
Summary of Treasury Stock Activity Below is a summary of the Company’s treasury stock activity for the three months ended March 31, 2022:

 

 

Number of

 

 

 

 

 

 

Treasury

 

 

 

 

 

 

Shares

 

 

Cost

 

Balance at January 1, 2022

 

 

5.35

 

 

$

91.1

 

Restricted stock withholdings (1)

 

 

0.09

 

 

 

1.6

 

Restricted stock forfeitures

 

 

0.03

 

 

 

 

Balance at March 31, 2022

 

 

5.47

 

 

$

92.7

 

(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 with shares. The Company determined the number of shares to be withheld based upon market values on the vest dates, which ranged from $16.37 to $17.51 per share.
Summary of Restricted Stock Activity

Below is a summary of restricted stock activity for the three months ended March 31, 2022:

 

 

Shares of

 

 

Weighted
Average

 

 

 

Restricted

 

 

Grant Date

 

 

 

Stock

 

 

Fair Value

 

Outstanding at January 1, 2022

 

 

2.00

 

 

$

21.73

 

Granted

 

 

0.74

 

 

$

16.64

 

Vested

 

 

(0.33

)

 

$

30.59

 

Forfeited

 

 

(0.03

)

 

$

19.99

 

Outstanding at March 31, 2022

 

 

2.38

 

 

$

18.96

 

Unvested restricted stock at March 31, 2022

 

 

2.38

 

 

 

 

Restricted Stock  
Summary of Restricted Stock and Restricted Stock Unit Award Activity

 

 

Three Months Ended
March 31,

 

 

 

2022

 

 

2021

 

Compensation expense recognized during the period

 

$

4.2

 

 

$

4.2

 

Fair value of restricted shares that vested during the period

 

$

5.6

 

 

$

1.2

 

Income tax benefit (cost) related to restricted stock awards

 

$

0.8

 

 

$

(0.1

)

 

Restricted Stock Units (RSUs)  
Summary of Restricted Stock and Restricted Stock Unit Award Activity

Below is a summary of restricted stock unit activity for the periods presented:

 

 

Three Months Ended March 31,

 

 

 

2022

 

 

2021

 

Number of restricted stock unit awards that vested during the period

 

 

0.10

 

 

 

0.01

 

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

 

$

1.7

 

 

$

0.3

 

Accumulated dividends paid upon vesting of restricted stock unit awards

 

$

0.3

 

 

$

0.1

 

Compensation expense recognized during the period

 

$

0.9

 

 

$

0.5

 

Income tax benefit (cost) related to stock unit awards

 

$

0.3

 

 

$

(0.1

)

During the three months ended March 31, 2022, the Company granted performance awards in the form of restricted stock units. The maximum number of shares issuable under the performance awards is 0.80 shares of common stock. The performance metrics for these awards are based upon the achievement of pre-established criteria that consists of revenue and consolidated cash flows as defined in the award agreement. The performance measurement period for these performance awards is one year with an additional service requirement to the third anniversary of the date of grant. Each performance target underlying the performance award has a threshold, target and maximum level, with the maximum level equal to 175% of the target award. If the performance metrics meet the threshold level, approximately 29% of the maximum restricted stock units vest. If the performance metrics for the one-year period are at target, approximately 57% of the maximum restricted stock units vest. If the performance metrics are at the maximum, 100% of the maximum restricted stock units vest. Grantees are eligible to receive a ratable portion of the common stock issuable if the achievement of the performance goals is within the targets previously noted. All restricted stock units granted during 2022 will be paid in the form of common stock if the participant continues to provide services through the third anniversary of the grant date. Restricted stock unit award participants are eligible to receive dividend equivalent payments from the grant date to the extent declared by the Company if, and at the time that, the restricted stock unit awards vest.

Company estimated that the most likely outcome is the achievement of the target level. The fair value of the restricted stock unit awards was determined based on the closing price of the Company’s common stock on the date of grant, which was $16.65 per share. The Company assumed a forfeiture rate of 5% for the restricted stock unit awards. If during the service period, additional information becomes available to lead the Company to believe a different achievement level will be reached for the one-year performance period, the Company will reassess the number of units that are expected to vest for the grant and adjust its compensation expense accordingly over the remaining service period.