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Equity-Based Awards
12 Months Ended
Dec. 31, 2020
Share-based Payment Arrangement [Abstract]  
Equity-Based Awards
14. Equity-Based Awards
As of December 31, 2020, our outstanding equity-based compensation plans and agreements include the Sovereign Holdings, Inc. Management Equity Incentive Plan (“Sovereign MEIP”), the Sovereign Holdings, Inc. 2012 Management Equity Incentive Plan (“Sovereign 2012 MEIP”), the Sabre Corporation 2014 Omnibus Incentive Compensation Plan (the “2014 Omnibus Plan”), the Sabre Corporation 2016 Omnibus Incentive Compensation Plan (the “2016 Omnibus Plan”), the Sabre Corporation 2019 Omnibus Incentive Compensation Plan (the "2019 Omnibus Plan"), and the 2019 Director Equity Compensation Plan ("2019 Director Plan"). Our 2019 Omnibus Plan serves as a successor to the 2016 Omnibus Plan, the 2014 Omnibus Plan, the Sovereign MEIP and Sovereign 2012 MEIP and provides for the issuance of stock options, restricted shares, restricted stock units (“RSUs”), performance-based RSU awards (“PSUs”), cash incentive compensation and other stock-based awards. Our 2019 Director Plan provides for the issuance of RSUs, Deferred Stock Units ("DSUs"), and stock options to non-
employee Directors. Outstanding awards under the 2016 Omnibus Plan, the 2014 Omnibus Plan, the Sovereign MEIP and Sovereign 2012 MEIP continue to be subject to the terms and conditions of their respective plan.
We initially reserved 12,500,000 shares of our common stock for issuance under our 2019 Omnibus Plan and 500,000 shares of our common stock for issuance under our 2019 Director Plan. We added 10,687,275 shares that were reserved but not issued under the Sovereign MEIP, Sovereign 2012 MEIP, 2014 Omnibus, and 2016 Omnibus Plans to the 2019 Omnibus Plan reserves, for a total of 23,187,275 authorized shares of common stock for issuance under the 2019 Omnibus Plan. Time-based options granted under the 2019, 2016, and 2014 Omnibus Plans prior to 2020 generally vest over a four year period with 25% vesting at the end of year one and the remaining vesting quarterly thereafter. Time-based options granted under the 2019 Omnibus Plan in 2020 vest over a three-year period, vesting in equal annual installments. Options granted prior to fiscal year 2020 vested over a four-year period. Options granted are exercisable for up to 10 years. RSUs generally vest over a four year period with 25% vesting annually. PSUs granted prior to 2020 generally vest over a four year period with 25% vesting annually. During 2020, we granted PSUs that vest over a three year period in equal annual installments, as well as PSUs that cliff vest at the end of one, two, or three years, depending on the terms of the grant. Vesting of PSUs is dependent upon the achievement of certain company-based performance measures. Stock-based compensation expense for all awards totaled $70 million, $67 million and $57 million for the years ended December 31, 2020, 2019 and 2018, respectively.
The fair value of the stock options granted was estimated at the date of grant using the Black-Scholes option pricing model. For further details on these assumptions, see Note 1. Summary of Business and Significant Accounting Policies. The following table summarizes the weighted-average assumptions used:
 Year Ended December 31,
 202020192018
Exercise price$8.24 $21.37 $22.89 
Average risk-free interest rate0.70 %2.40 %2.72 %
Expected life (in years)6.006.116.11
Expected volatility36.41 %26.32 %23.17 %
Dividend yield5.11 %2.62 %2.46 %

The following table summarizes the stock option award activities under our outstanding equity-based compensation plans and agreements for the year ended December 31, 2020:
  Weighted-Average 
 QuantityExercise Price
Remaining
Contractual
Term (years)
Aggregate
Intrinsic Value
(in thousands) (1)
Outstanding at December 31, 20194,478,366 $21.46 7.4$8,000 
Granted2,043,226 8.24 
Exercised(39,766)6.12 
Cancelled(1,857,337)22.86 
Forfeited(433,620)16.96 
Expired(890,613)20.26 
Outstanding at December 31, 20203,300,256 $13.59 7.9$7,401 
Vested and exercisable at December 31, 20201,091,946 $20.43 5.6$242 
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(1)Aggregate intrinsic value is calculated as the difference between the exercise price of the underlying stock options awards and the closing price of our common stock of $12.02 on December 31, 2020.
The total intrinsic value of stock options exercised was immaterial for the year ended December 31, 2020. For the years ended December 31, 2019 and 2018, the total intrinsic value of stock options exercised was $4 million and $6 million, respectively. The weighted-average fair values of options granted were $1.71, $4.55, and $4.58 during the years ended December 31, 2020, 2019 and 2018, respectively. As of December 31, 2020, $4 million in unrecognized compensation expense associated with stock options will be recognized over a weighted-average period of 2.3 years.
The following table summarizes the activities for our RSUs for the year ended December 31, 2020:
Quantity
Weighted-Average
Grant Date
Fair Value
Unvested at December 31, 20196,365,580 $22.06 
Granted9,791,052 8.47 
Vested(2,320,243)22.97 
Cancelled(295,024)8.47 
Forfeited(1,231,719)16.67 
Unvested at December 31, 202012,309,646 $12.07 
The total fair value of RSUs vested, as of their respective vesting dates, was $52 million, $47 million, and $30 million during the years ended December 31, 2020, 2019 and 2018, respectively. As of December 31, 2020, approximately $106 million in unrecognized compensation expense associated with RSUs will be recognized over a weighted average period of 2.1 years.
The following table summarizes the activities for our PSUs for the year ended December 31, 2020:
Quantity
Weighted-Average
Grant Date
Fair Value
Unvested at December 31, 20192,089,505 $21.99 
Granted1,762,444 9.03 
Vested(667,460)20.29 
Forfeited(337,694)15.55 
Unvested at December 31, 20202,846,795 $14.18 
The total fair value of PSUs vested, as of their respective vesting dates, was $14 million, $11 million and $9 million during the years ended December 31, 2020, 2019 and 2018, respectively. The recognition of compensation expense associated with PSUs is contingent upon the achievement of annual company-based performance measures. During the year ended December 31, 2020, we amended the 2020 performance metrics associated with PSUs that vest in March 2021 due to the impact of COVID-19 on our performance and these awards became subject to variable accounting based on the fair value at the end of each period with the cumulative effect of changes in fair value recorded each reporting period. During the years ended December 31, 2019 and 2018, we assessed the probability of achieving the performance measures associated with PSU awards each reporting period and, if there was an adjustment, recorded the cumulative effect of the adjustment in that respective reporting period. As of December 31, 2020, unrecognized compensation expense associated with PSUs expected to vest totaled $14 million and $8 million for the annual measurement periods ending December 31, 2021 and 2022, respectively.