Stock-Based Compensation

9 Months Ended

Sep. 30, 2022

Share-Based Payment Arrangement [Abstract]

The following table sets forth share-based award expense activity for the three and nine months ended September 30, 2022 and 2021, which is included as a component of selling, general and administrative expenses and expenses in the homebuilding and financial services sections, respectively, of our consolidated statements of operations and comprehensive income:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021

	(Dollars in thousands)
Stock option grants expense	$	16,914	$	600	$	18,094	$	2,189
Restricted stock awards expense	1,364		3,026		5,992		6,947
Performance share units expense	7,277		4,293		26,262		17,728
Total stock-based compensation	$	25,555	$	7,919	$	50,348	$	26,864

On September 28, 2022 the Compensation Committee of the Company granted long-term non-qualified stock options for 1,800,000 shares of common stock under the Company’s 2021 Equity Incentive Plan. The stock options vested immediately and will become exercisable equally over three years, starting with the first anniversary of the grant date. The option exercise price is equal to the closing price of the Company’s common stock on the date of grant, which was $28.78 and the expiration date of each option is September 28, 2032. The grant date fair value of these options is $8.34 per share, resulting in $15.0 million of compensation expense recognized during the three and nine months ended September 30, 2022.

Additional detail on the performance share units ("PSUs") expense is included below:

2018 PSU Grants. The 2018 PSU awards vested on April 29, 2021. For the three and nine months ended September 30, 2021, the Company recorded share-based award expense of $1.3 million related to these awards.

2019 PSU Grants. The 2019 PSU awards vested on February 3, 2022. For the three and nine months ended September 30, 2021, the Company recorded share-based award expense of $1.8 million and $5.5 million, respectively, related to these awards.

2020 PSU Grants. As of September 30, 2022, the Company recorded the required share-based award expense related to the awards of $2.5 million and $7.4 million for the three and nine months ended September 30, 2022, based on its assessment of the probability for achievement of the performance targets. For the three and nine months ended September 30, 2021, the Company recorded share-based award expense of $2.5 million and $10.9 million, respectively, related to these awards.

2021 PSU Grants. As of September 30, 2022, the Company recorded the required share-based award expense related to the awards of $4.8 million and $18.9 million for the three and nine months ended September 30, 2022, based on its assessment of the probability for achievement of the performance targets. As of September 30, 2021, the Company concluded that achievement of any of the performance metrics had not met the level of probability required to record compensation expense and accordingly, no expense related to these awards was recognized.