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)

3 Months Ended

Mar. 31, 2023

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

The following table presents share-based compensation amounts recognized in our condensed consolidated statements of operations, in thousands:


	Three Months Ended March 31,
	2023		2022
Share-based compensation expense	$	3,135	$	3,727
Income tax (expense)/benefit	$	(45)	$	1,605

Schedule of share-based compensation activity

The following table presents a summary of our share-based compensation activity for three months ended March 31, 2023, 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, 2022	173.2	$	195.06	182.2	$	32.25	$	86.79	$	13,992.3
Granted	95.4	$	202.24	—	$	—	$	—		—
Converted/Exercised	(95.0)	$	145.57	(28.8)	$	13.07	$	35.67	$	4,504.8
Forfeited/Expired	(5.3)	$	242.76	—	$	—	$	—		—
Balance March 31, 2023	168.3	$	225.41	153.4	$	35.98	$	96.40	$	17,277.2

Exercisable March 31, 2023 (a)				145.9	$	33.25	$	90.39	$	17,277.2

(a)	The weighted average remaining contractual term for vested stock options is approximately 5.9 years.

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

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


	As of March 31, 2023
	Unrecognized Compensation Expense on Unvested Awards		Weighted Average Remaining Compensation Expense Period
RSAs	$	24,835		1.2
Stock options		397		0.5
Total unrecognized compensation expense related to unvested awards	$	25,232

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


	2023			2022
Measurement period (years)		2.86			2.87
Risk free interest rate		4.42	%		1.76	%
Dividend yield		0.00	%		0.00	%
Estimated fair value of market-based RSAs at grant date	$	270.64		$	298.20

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 16, 2021	$	2,197	$	-	$	549	$	2,197	$	4,394
February 15, 2022	$	3,097	$	-	$	774	$	3,097	$	6,194
February 21, 2023	$	4,192	$	-	$	1,048	$	4,192	$	8,384