Equity Awards

6 Months Ended

Jun. 30, 2021

Share-based Payment Arrangement [Abstract]

Stock Options

The Company recognized no stock-based compensation expense related to stock options during the three and six months ended June 30, 2021 and 2020, respectively. As of June 30, 2021, there was no unrecognized compensation costs related to stock options remaining. Information related to stock options at June 30, 2021 is as follows:


	Number of Stock Options	Weighted Average Option Price		Average Remaining Contractual Life (Years)	Aggregate Intrinsic Value
Outstanding at January 1, 2021	150,000	$	17.87
Granted	—	—
Exercised	(150,000)	17.87
Cancelled	—	—
Expired	—	—
Outstanding at June 30, 2021	—	$	—	—	$	—

Restricted Stock Units

The Company awarded the following restricted stock units ("RSUs") during the six months ended June 30, 2021:

•granted 113,504 RSUs to certain employees, which are subject only to a service condition and vest ratably over three years so long as the employee remains with the Company;

•granted 21,112 RSUs to its non-employee independent directors, which fully vest one year from date of grant so long as the director and/or Company does not terminate the director's service prior to the vesting date; and

•issued 995 RSUs related to director fee deferrals during the six months ended June 30, 2021 as certain of the Company's directors elected to defer all or a portion of their directors fees and to receive the amount in Company common stock at a future date.

During 2021, the Company awarded 72,962 performance-based RSUs to certain Company key employees which vest three years from the grant date as long as the employee remains with the Company. These awards are earned 50% based upon the Company's achievement of an earnings per share compound annual growth rate ("EPS CAGR") metric over a period beginning January 1, 2021 and ending December 31, 2023. The remaining 50% of the awards are earned based on the Company's total shareholder return ("TSR") relative to the TSR of the common stock of a pre-defined industry peer-group, measured over the performance period. TSR is calculated as the Company's average closing stock price for the 20 trading days at the end of the performance period plus Company dividends, divided by the Company's average closing stock price for the 20 trading days prior to the start of the performance period. The Company estimates the grant-date fair value subject to a market condition using a Monte Carlo simulation model, using the following weighted average assumptions: risk-free rate of 0.28% and annualized volatility of 35.5%. Depending on the performance achieved for these two metrics, the amount of shares earned, if any, can vary for each metric from 0% of the target award to a maximum of 200% of the target award. For similar performance-based RSUs awarded in 2018, the Company attained 126.2% of the target on a weighted average basis, resulting in an increase of 25,993 shares during the three months ended March 31, 2021.

Information related to RSUs at June 30, 2021 is as follows:


	Number of Unvested RSUs	Weighted Average Grant Date Fair Value		Average Remaining Contractual Life (Years)	Aggregate Intrinsic Value
Outstanding at January 1, 2021	784,968	$	26.46
Granted	234,566	34.62
Vested	(301,008)	30.80
Cancelled	(19,252)	25.54
Outstanding at June 30, 2021	699,274	$	27.35	1.3	$	21,208,980

As of June 30, 2021, there was approximately $9.1 million of unrecognized compensation cost related to unvested RSUs that is expected to be recorded over a weighted average period of 2.1 years.

The Company recognized stock-based compensation expense related to RSUs of approximately $3.2 million and $2.7 million during the three months ended June 30, 2021 and 2020, respectively, and approximately $5.7 million and $4.7 million during the six months ended June 30, 2021 and 2020, respectively. The stock-based compensation expense is included in selling, general and administrative expenses in the accompanying consolidated statement of operations.