STOCK-BASED COMPENSATION

9 Months Ended

Sep. 30, 2020

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION

6.    STOCK-BASED COMPENSATION

In April 2014, the Company reserved 8,000,000 shares of common stock under the 2014 Stock Incentive Plan with a term of 10 years expiring in April 2024. This plan provides for the issuance of various forms of stock incentives, including, among others, incentive and non-qualified stock options and restricted shares. As of September 30, 2020, there were 3,905,000 shares available for grant.

During the third quarter of 2020 the Company recorded $3.3 million of accumulated amortization of restricted restricted stock related to the passing of R. Randall Rollins, RPC’s chairman.

Stock-based employee compensation expense was as follows for the periods indicated:

	Three months ended				Nine months ended
	September 30,				September 30
(in thousands)	2020		2019		2020		2019
Pre-tax expense	$	5,207	$	2,436	$	9,321	$	7,324
After tax expense	$	3,419	$	1,840	$	6,525	$	5,530

Restricted Stock

The following is a summary of the changes in non-vested restricted shares for the nine months ended September 30, 2020:

		Weighted Average
	Shares	Grant-Date Fair Value
Non-vested shares at December 31, 2019	2,393,673	$	13.23
Granted	1,085,875		4.59
Vested	(843,926)		14.96
Forfeited	(261,178)		13.73
Non-vested shares at September 30, 2020	2,374,444	$	6.98

The total fair value of shares vested was $3,452,000 during the nine months ended September 30, 2020 and $7,018,000 during the nine months ended September 30, 2019. Excess tax benefits or deficits realized from tax compensation deductions in excess of, or lower than compensation expense are recorded as either a beneficial or detrimental discrete tax adjustment. This discrete tax adjustment was a detriment of $2,241,000 for the nine months ended September 30, 2020 and a detriment of $530,600 for the nine months ended September 30, 2019.

As of September 30, 2020, total unrecognized compensation cost related to non-vested restricted shares was $40,305,000, which is expected to be recognized over a weighted-average period of 4.0 years.