TopBuild Corp. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Share-Based Compensation (Tables)

Share-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2022

Schedule of share-based compensation expense and related income tax benefit


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Share-based compensation expense	$	2,611	$	2,998	$	9,673	$	8,375
Income tax (expense) benefit	$	(56)	$	(130)	$	1,517	$	3,190

Schedule of share-based compensation activity

The following table presents a summary of our share-based compensation activity for nine months ended September 30, 2022 in thousands, except per share amounts:


	RSAs			Stock Options
	Number of Shares	Weighted Average Grant Date Fair Value Per Share		Number of Shares	Weighted Average Grant Date Fair Value Per Share		Weighted Average Exercise Price Per Share		Aggregate Intrinsic Value
Balance December 31, 2021	244.4	$	119.41	210.5	$	32.35	$	87.30	$	39,692.4
Granted	105.8	$	177.36	—	$	—	$	—		—
Converted/Exercised	(168.1)	$	75.65	(25.2)	$	27.92	$	80.40	$	3,183.0
Forfeited/Expired	(10.6)	$	223.63	(3.1)	$	68.81	$	174.76		—
Balance September 30, 2022	171.5	$	194.71	182.2	$	32.25	$	86.79	$	15,317.8

Exercisable September 30, 2022 (a)				148.4	$	25.71	$	69.94	$	14,443.4

(a)	The weighted average remaining contractual term for vested stock options is approximately 5.5 years.

Schedule of unrecognized share-based compensation expense relating to unvested awards

Unrecognized share-based compensation expense related to unvested awards is shown in the following table, dollars in thousands:


	As of September 30, 2022
	Unrecognized Compensation Expense on Unvested Awards		Weighted Average Remaining Compensation Expense Period
RSAs	$	15,203		1.0
Stock options		677		0.7
Total unrecognized compensation expense related to unvested awards	$	15,880

Schedule of key inputs used to estimate the fair value of awards


	2022			2021
Measurement period (years)		2.87			2.87
Risk free interest rate		1.76	%		0.22	%
Dividend yield		0.00	%		0.00	%
Estimated fair value of market-based RSAs at grant date	$	298.20		$	298.66

Schedule of assumptions used to estimate the fair values of options granted


	2021
Risk free interest rate		0.76	%
Expected volatility, using historical return volatility and implied volatility		43.29	%
Expected life (in years)		6.0
Dividend yield		0.00	%
Estimated fair value of stock options at grant date	$	89.59

Performance-based conditions | Restricted Stock Awards

Share-Based Compensation

Schedule of the range of payouts and the related expense for RSAs with performance-based conditions


			Payout Ranges and Related Expense
RSAs with Performance-Based Conditions	Grant Date Fair Value		0%		25%		100%		200%
February 17, 2020	$	2,526	$	0	$	632	$	2,526	$	5,052
February 16, 2021	$	2,374	$	0	$	594	$	2,374	$	4,748
February 15, 2022	$	3,411	$	0	$	853	$	3,411	$	6,822