Equity-based Compensation

12 Months Ended

Dec. 31, 2020

Share-based Payment Arrangement [Abstract]

Equity‑based Compensation

Restricted Stock Awards and Restricted Stock Units

Our Long-Term Incentive Plan ("LTIP") provides for the granting of incentive awards in the form of stock options, stock appreciation rights, restricted stock awards, restricted stock units, among other award types. In January 2018 and January 2015, the board of directors approved amendments to the plan which added 11.0 million and 15.0 million shares, respectively, to the plan which were approved at the corresponding Annual General Meeting. The LTIP as amended provides for the issuance of 50.5 million shares pursuant to awards under the plan. As of December 31, 2020, the Company had approximately 6.5 million shares that remain available for issuance under the LTIP.

We record equity-based compensation expense equal to the fair value of share‑based payments over the vesting periods of the LTIP awards. We recorded compensation expense from awards granted under our LTIP of $32.7 million, $32.4 million and $35.2 million during the years ended December 31, 2020, 2019 and 2018, respectively. The total tax benefit for the years ended December 31, 2020, 2019 and 2018 was $4.7 million, $4.9 million and $6.6 million, respectively. Additionally, we expensed a net tax shortfall (windfall) related to equity‑based compensation of $1.3 million, $1.2 million and $(0.4) million for the years ended December 31, 2020, 2019 and 2018, respectively. The fair value of awards vested during 2020, 2019 and 2018 was approximately $26.0 million, $20.3 million, and $85.1 million, respectively. The Company granted both restricted stock awards and restricted stock units with service vesting criteria and granted both restricted stock awards and restricted stock units with a combination of market and service vesting criteria under the LTIP. Substantially, all of these awards vest over a three year period. Restricted stock awards are issued and included in the number of outstanding shares upon the date of grant and, if such awards are forfeited, they become treasury stock. Upon vesting, restricted stock units become issued and outstanding stock.

The following table reflects the outstanding restricted stock awards as of December 31, 2020:


	Service Vesting Restricted Stock Awards	Weighted- Average Grant-Date Fair Value		Market / Service Vesting Restricted Stock Awards	Weighted- Average Grant-Date Fair Value
	(In thousands)			(In thousands)
Outstanding at December 31, 2017:	220	$	8.64	—	$	—
Granted	—	—		—	—
Forfeited	—	—		—	—
Vested	(220)	8.64		—	—
Outstanding at December 31, 2018:	—	—		—	—

There has been no additional restricted stock activity subsequent to December 31, 2018.

The following table reflects the outstanding restricted stock units as of December 31, 2020:


	Service Vesting Restricted Stock Units	Weighted- Average Grant-Date Fair Value		Market / Service Vesting Restricted Stock Units	Weighted-Average Grant-Date Fair Value
	(In thousands)			(In thousands)
Outstanding at December 31, 2017:	4,183	$	6.39	8,452	$	11.26
Granted	2,402	7.07		8,111	12.38
Forfeited	(229)	6.40		(302)	8.95
Vested	(2,241)	6.95		(9,545)	13.75
Outstanding at December 31, 2018:	4,115	6.42		6,716	9.02
Granted	3,228	5.01		3,195	6.02
Forfeited	(591)	5.90		(813)	7.93
Vested	(2,021)	5.95		(1,300)	6.32
Outstanding at December 31, 2019:	4,731	5.71		7,798	8.42
Granted	3,481	5.48		3,394	8.37
Forfeited	(1,187)	6.12		(726)	8.03
Vested	(2,185)	5.91		(2,607)	9.47
Outstanding at December 31, 2020:	4,840	5.34		7,859	8.11

As of December 31, 2020, total equity‑based compensation to be recognized on unvested restricted stock units is $22.9 million over a weighted average period of 1.7 years.

For restricted stock units with a combination of market and service vesting criteria, the number of shares of common stock to be issued is determined by comparing the Company’s total shareholder return with the total shareholder return of a predetermined group of peer companies over the performance period and can vest up to 200% of the awards granted. The grant date fair value ranged from $1.06 to $12.96 per award. The Monte Carlo simulation model utilizes multiple input variables that determine the probability of satisfying the market condition stipulated in the award grant and calculates the fair value of the award. The expected volatility utilized in the model was estimated using our historical volatility and the historical volatilities of our peer companies and ranged from 44.0% to 52.0%. The risk‑free interest rate was based on the U.S. treasury rate for a term commensurate with the expected life of the grant ranged from 0.8% to 2.5% for restricted stock units. The expected quarterly dividends ranged from $0.045 to $0.050 commensurate with our current dividend experience.

In January 2021, we granted 2.5 million service vesting restricted stock units and 6.7 million market and service vesting restricted stock units to our employees under our long-term incentive plan. We expect to recognize approximately $32.2 million of non-cash compensation expense related to these grants over the next three years.