Stockholders' Equity

6 Months Ended

Jun. 30, 2024

Equity [Abstract]

Stockholders' Equity

Stockholders’ Equity

Stock Repurchase Program

In October 2023, our board of directors approved a stock repurchase program authorizing repurchases of up to $100.0 million of our common stock, with no fixed expiration. In May 2024, our board of directors approved a $75.0 million increase in the stock repurchase program, bringing the aggregate amount authorized to $175.0 million. Under this program, we are authorized to repurchase our common stock through any manner, including open market transactions, accelerated stock repurchase agreements, or privately negotiated transactions with third parties, and in such amounts as management deems appropriate. Open market repurchases may be structured to occur in accordance with applicable federal securities laws, including within the pricing and volume requirements of Rule 10b-18 under the Securities Exchange Act of 1934, as amended. We may also, from time to time, enter into Rule 10b5-1 plans to facilitate repurchases of our shares of common stock under this authorization. This program does not obligate us to acquire any particular amount of common stock and may be modified, suspended or terminated at any time at the discretion of our board of directors. Shares repurchased under our stock repurchase program are purchased for immediate retirement.

During the three months ended June 30, 2024, using Rule 10b5-1 plans, we repurchased a total of 13.9 million shares of our common stock through open market purchases at an average per share price of $8.99 for a total repurchase of $125.2 million including broker commissions. During the six months ended June 30, 2024, using Rule 10b5-1 plans, we repurchased a total of 15.1 million shares of our common stock through open market purchases at an average per share price of $9.14 for a total repurchase of $138.0 million including broker commissions. The repurchases were recorded as a reduction to stockholders' equity. Approximately $37.0 million remained available for future repurchases under the stock repurchase program as of June 30, 2024.

The Inflation Reduction Act of 2022, enacted in August 2022, imposed a 1% non-deductible excise tax on net repurchases of shares by domestic corporations whose stock is traded on an established securities market. Consequently, this excise tax is applicable to shares of stock repurchased pursuant to our stock repurchase program beginning in 2023 and represents a cost of the repurchases of our common stock. We have recognized a $1.1 million excise tax liability as of June 30, 2024 because the fair market value of stock repurchases exceeded the fair market value of stock issuances during the six months ended June 30, 2024.