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Share-based Compensation
9 Months Ended
Sep. 26, 2020
Share-based Payment Arrangement [Abstract]  
Share-based Compensation Share-based Compensation
During the nine months ended September 26, 2020, we granted 118,059 common shares with an aggregate grant date fair value of approximately $1.3 million to the non-management members of our Board of Directors under the Amended and Restated Primo Water Corporation Equity Incentive Plan. The common shares were issued in consideration of the directors’ annual board retainer fee and are fully vested upon issuance.
In the second quarter of 2020, the Human Resources and Compensation Committee of the Board of Directors (the “HRCC”) approved a bonus for a select group of associates that will be settled in fully vested common shares based on the closing share price on the date the achievement of the performance target described below is certified by the HRCC, expected to occur in early 2021. The aggregate target payout of $2.4 million is based on (1) attainment of a specified percentage target under the Company's annual cash performance bonus plan for the DSS business, and (2) attainment of a specified annualized 2020 synergy target. This bonus is being accounted for as a liability-classified award with a performance condition. The final bonus payout will be based upon the performance percentage, which can range from 0% to 200% of the target payout. For the three and nine months ended September 26, 2020, the Company recorded $1.4 million and $2.0 million of share-based compensation expense, which are included in SG&A expenses on the Consolidated Statements of Operations, respectively. A related liability associated with these awards of $2.0 million was recorded in accounts payable and accrued liabilities on the Consolidated Balance Sheet as of September 26, 2020.
On August 4, 2020, we amended each of the Amended and Restated Primo Water Corporation Equity Incentive Plan and the Primo Water Corporation 2018 Equity Incentive Plan to provide for defined criteria for a retirement along with continued vesting of equity awards upon a retirement. The total incremental compensation expense associated with the modification was $2.6 million and was included in SG&A expenses on the Consolidated Statements of Operations for the three and nine months ended September 26, 2020.