Stock-based Compensation
Stock-based compensation expenses are included in cost of services and products, and selling, general, and administrative expenses in our consolidated statements of operations.

For the years ended December 31, 2023, 2022 and 2021, we recorded stock-based compensation expense of approximately $9 million, $13 million and $15 million, respectively. We recognized an income tax benefit from our compensation expense of approximately $2 million, $3 million and $4 million during the years ended December 31, 2023, 2022 and 2021, respectively.

Historical Timeline

Fiscal YearFiled
2023Feb 22, 2024Showing above
2022Feb 23, 2023
2021Feb 24, 2022
2020Mar 3, 2021
2019Mar 5, 2020
2018Mar 22, 2019
2017Mar 12, 2018
2016Mar 2, 2017
2015Mar 1, 2016

About Stock Compensation Disclosures

Stock-based compensation disclosures detail the equity awards granted to employees and executives — including stock options, restricted stock units (RSUs), and performance shares — along with the valuation methods and assumptions used to expense them. This section reveals the true cost of talent retention and the alignment between management incentives and shareholder interests.

Key signals: total unrecognized compensation expense and its expected recognition period signal future earnings headwinds from already-granted awards. For stock options, examine Black-Scholes assumptions — expected volatility, risk-free rate, and expected term — as understating any of these reduces reported compensation expense. Compare stock compensation expense as a percentage of revenue against peers to assess dilution cost. Watch vesting schedules for acceleration clauses tied to change-of-control events. Performance-based awards with undemanding targets may indicate weak governance. Add back stock compensation to operating cash flow to calculate a more conservative free cash flow figure.