Annual report pursuant to Section 13 and 15(d)

Employee Benefit Plans (Tables)

v3.22.4
Employee Benefit Plans (Tables)
 12 Months Ended
Dec. 31, 2022
Retirement Benefits [Abstract]  
Status of Stock Options Related to Stock Plans
A summary of the status of the stock options related to the Stock Plans is presented below:
Options
Outstanding
Exercise Price
Per Share
(Low - High)
 Weighted-Average Exercise Price Per Share
Weighted-
Average
Remaining
Contractual
Term
Aggregate
Intrinsic
Value
(In millions, except per share data, term in years)
Balance at December 31, 2021 1.8  $ 16.76   - 16.76 $ 16.76  8.3 $ 57.9 
Exercised (0.5) $ 16.76   - 16.76 $ 16.76 
Balance at December 31, 2022 1.2  $ 16.76   - 16.76 $ 16.76  7.3 $ 40.2 
Exercisable 0.6  $ 16.76   - 16.76 $ 16.76  7.3 $ 20.6 
Schedule Intrinsic Value of Options Exercised
Year Ended December 31,
2022 2021 2020
(In millions, except per option amounts)
Weighted-average grant date fair value per option granted $ 4.17  $ 4.17  $ 4.17 
Intrinsic value of stock options exercised $ 18.0  $ 15.4  $ — 
Status of Non-Vested Restricted Stock and Restricted Stock Unit Grants Related to Stock Plans
A summary of the status of the non-vested restricted stock award and restricted stock unit grants related to the Stock Plans is presented below: 
Non-Vested
Restricted
Stock Awards
and Restricted
Stock Units
Weighted-
Average
Grant Date
Fair Value
per Share
(In millions, except per share data)
Balance at December 31, 2021 1.5  $ 26.35 
Granted 0.6  $ 49.30 
Forfeited —  $ 45.91 
Vested (0.6) $ 22.30 
Balance at December 31, 2022 1.5  $ 36.12 
Status of Supplemental Executive Retirement Plan
The following table sets forth the status of the SERP:
Year Ended December 31,
2022 2021
Change in projected benefit obligation: (In millions)
Obligation at January 1 $ 23.5  $ 22.5 
Service cost 1.6  2.7 
Interest cost 0.6  0.5 
Actuarial loss (gain) (4.6) (1.8)
Benefits paid (0.4) (0.4)
Obligation at December 31 (1) $ 20.7  $ 23.5 
Accumulated benefit obligation $ 15.5  $ 18.6 
(1)As of December 31, 2022, approximately $0.4 million was included in other accrued liabilities and approximately $20.3 million was included in other long-term liabilities in the accompanying consolidated balance sheet as of such date. As of December 31, 2021, approximately $0.4 million was included in other accrued liabilities and approximately $23.1 million was included in other long-term liabilities in the accompanying consolidated balance sheet as of such date.
Schedule of Funded Status
Year Ended December 31,
2022 2021
Change in fair value of plan assets: (In millions)
Plan assets at January 1 $ —  $ — 
Actual return on plan assets —  — 
Employer contributions 0.4  0.4 
Benefits paid (0.4) (0.4)
Plan assets at December 31 —  — 
Funded status recognized $ (20.7) $ (23.5)
Cost Components of Supplemental Executive Retirement Plan
The following table provides the cost components of the SERP:
Year Ended December 31,
2022 2021
(In millions)
Service cost $ 1.6  $ 2.7 
Interest cost 0.6  0.5 
Amortization of gain (loss) 0.0 0.1
Net pension expense (benefit) $ 2.2  $ 3.3 
Weighted Average Assumptions Used to Determine Benefit Obligation and Net Periodic Benefit Costs
The weighted-average assumptions used to determine the benefit obligation and net periodic benefit costs consist of:
As of December 31,
2022 2021
Discount rate 4.93  % 2.60  %
Rate of compensation increase 3.00  % 3.00  %
Estimated Future Benefit Payments
The estimated future benefit payments expected to be paid for each of the next five years and the sum of the payments expected for the next five years thereafter are:
Estimated Future Benefit Payments
Year Ending December 31, (In millions)
2023 $ 0.4 
2024 $ 0.4 
2025 $ 0.4 
2026 $ 0.4 
2027 $ 0.5 
2028 - 2032 $ 6.4 
Schedule of Multiemployer Pension Plans Affecting Period-to-Period Comparability of Contributions
Our participation in the AI Pension Plan for 2022, 2021 and 2020 is outlined in the table below. The “EIN/Pension Plan Number” column provides the Employee Identification Number (the “EIN”). Unless otherwise noted, the most recent Pension Protection Act of 2006 (the “PPA”) zone status available in the years ended December 31, 2022 and 2021 is for the plan’s year-end at December 31, 2021 and 2020, respectively. The zone status is based on information that we received from the AI Pension Plan. Among other factors, plans in the red zone are generally less than 65% funded (“Critical Status”), plans in the yellow zone are less than 80% funded and plans in the green zone are at least 80% funded. The “FIP/RP Status - Pending/Implemented” column indicates plans for which a Financial Improvement Plan (“FIP”) or a Rehabilitation Plan (“RP”) is either pending or has been implemented. The last column lists the expiration dates of the collective bargaining agreements to which the plan is subject. The number of employees covered by the AI Pension Plan decreased 8.5% from December 31, 2020 to December 31, 2021 and increased 4.3% from December 31, 2021 to December 31, 2022, affecting the period-to-period comparability of the contributions for 2022, 2021 and 2020.
Pension
Protection
Act Zone
Status
 FIP/RP Status Sonic Contributions Surcharge Imposed Collective Bargaining Agreement Expiration Date
Pension Fund EIN/Pension Plan Number 2022 2021 Pending /Implemented Year Ended December 31,
2022 2021 2020
(In millions)
AI Pension Plan
 94-1133245 Red Red RP Implemented $0.2 $0.1 $0.2 Yes Between
November 2024
and January 2025