Annual report pursuant to Section 13 and 15(d)

Shareholder's Equity, Stock Incentive Plan and Net Income per Share (Tables)

v3.20.4
Shareholder's Equity, Stock Incentive Plan and Net Income per Share (Tables)
 12 Months Ended
Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]
A reconciliation of net income attributable to Forward Air and weighted-average common shares outstanding for purposes of calculating basic and diluted net income per share during the years ended December 31, 2020, 2019 and 2018 is as follows:
 
2020 2019 2018
Numerator:
Net income and comprehensive income from continuing operations $ 52,767  $ 82,322  $ 88,563 
Net (loss) income and comprehensive (loss) income from discontinued operation (29,034) 4,777  3,488 
Net income attributable to Forward Air $ 23,733  $ 87,099  $ 92,051 
Income allocated to participating securities (385) (945) (881)
Numerator for basic and diluted net income per share for continuing operations $ 52,382  $ 81,377  $ 87,682 
Numerator for basic and diluted net (loss) income per share for discontinued operation $ (29,034) $ 4,777  $ 3,488 
Denominator:
Denominator for basic net income per share - weighted-average number of common shares outstanding 27,631  28,195  29,076 
Dilutive stock options and performance share awards 66  113  114 
Denominator for diluted net income per share - weighted-average number of common shares and common share equivalents outstanding 27,697  28,308  29,190 
Basic net income (loss) per share:
    Continuing operations $ 1.90  $ 2.89  $ 3.02 
    Discontinued operation (1.05) 0.17  0.12 
Net income per share1
$ 0.84  $ 3.06  $ 3.14 
Diluted net income (loss) per share:
    Continuing operations $ 1.89  $ 2.87  $ 3.00 
    Discontinued operation (1.05) 0.17  0.12 
Net income per share $ 0.84  $ 3.04  $ 3.12 
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block]
The number of shares that were not included in the calculation of net income per diluted share because to do so would have been anti-dilutive for the years ended December 31, 2020, 2019 and 2018 are as follows:
2020 2019 2018
Anti-dilutive stock options 206  183  126 
Anti-dilutive performance shares 15  —  16 
Anti-dilutive restricted shares and deferred stock units 3  —  9 
Total anti-dilutive shares 224  183  151 
Employee Stock Option [Member]  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Share-based Compensation, Stock Options, Activity [Table Text Block]
The weighted-average assumptions under the Black-Scholes option-pricing model were as follows for the years ended December 31, 2020 and 2018.  The Company did not grant stock options during the year ended December 31, 2019.
December 31,
2020		 December 31,
2018
Expected dividend yield 1.1  % 1.1  %
Expected stock price volatility 24.1  % 24.4  %
Risk-free interest rate 1.5  % 2.7  %
Expected life of options (years) 5.9 6.1

    
The following table sets forth the exercise price range, number of shares, weighted-average exercise price and remaining contractual lives by groups of similar price on a continuing basis as of December 31, 2020:
Weighted- Outstanding Exercisable
Average Weighted- Weighted-
Range of Number of Shares Outstanding Remaining Average Number of Shares Exercisable Average
Exercise Contractual Life Exercise Exercise
Price (in years) Price Price
$ 43.67  - $ 44.90  59  2.1 $ 43.70  59  $ 43.70 
47.82  - 48.32  68  3.1 47.86  68  47.86 
50.71  - 53.73  26  1.6 51.31  26  51.31 
57.18  - 60.42  70  4.1 58.73  45  58.64 
64.26  - 65.96  136  5.0 64.71  67  64.26 
$ 43.67  - $ 65.96  359  3.7 $ 55.88  265  $ 53.23 

Stock option activity and related information on a continuing basis was as follows:

Year ended
December 31, 2020 December 31, 2019 December 31, 2018
Weighted- Weighted- Weighted-
Average Average Average
Stock Exercise Stock Exercise Stock Exercise
Options Price Options Price Options Price
Outstanding at beginning of year 417  $ 53.37  512  $ 51.49  417  $ 44.55 
Granted 36  65.96  —  —  190  61.72 
Exercised (89) 47.72  (87) 42.24  (95) 41.42 
Forfeited (5) 59.73  (8) 53.76  —  — 
Outstanding at end of year 359  $ 55.79  417  $ 53.37  512  $ 51.49 
Exercisable at end of year 265  $ 53.20  262  $ 50.03  213  $ 44.66 
Weighted-average fair value of stock options granted during the year $ 14.79  $ —  $ 15.82 
Aggregate intrinsic value for stock options exercised $ 1,568  $ 2,196  $ 1,992 
Average aggregate intrinsic value for stock options outstanding $ 970 
Average aggregate intrinsic value for exercisable stock options $ 1,435 
    
Year ended
December 31,
2020		 December 31,
2019		 December 31,
2018
Share-based compensation expense for stock options $ 1,163  $ 1,556  $ 1,521 
Tax benefit for stock options exercised $ 287  $ 392  $ 384 
Unrecognized compensation expense for stock options $ 784 
Weighted average period over which unrecognized compensation expense will be recognized (years) 1.3
The following table sets forth the exercise price range, number of shares, weighted-average exercise price and remaining contractual lives by groups of similar price on a discontinued basis as of December 31, 2020:

Weighted- Outstanding Exercisable
Average Weighted- Weighted-
Range of Number of Shares Outstanding Remaining Average Number of Shares Exercisable Average
Exercise Contractual Life Exercise Exercise
Price (in years) Price Price
$ 47.82  - $ 58.40  14  3.5 $ 52.22  14  $ 52.22 

Stock option activity and related information on a discontinued basis was as follows:

Year ended
2020 2019 2018
Weighted- Weighted- Weighted-
Average Average Average
Stock Exercise Stock Exercise Stock Exercise
Options Price Options Price Options Price
Outstanding at beginning of year 14  $ 52.15  26  $ 49.00  22  $ 47.49 
Granted —  —  —  —  4  58.40 
Exercised —  —  (12) 45.46  —  — 
Forfeited —  —  —  —  —  — 
Outstanding at end of year 14  $ 52.15  14  $ 52.15  26  $ 49.00 
Exercisable at end of year 14  $ 52.15  9  $ 51.35  17  $ 47.74 
Weighted-average fair value of stock options granted during the year $ —  $ —  $ 16 
Aggregate intrinsic value for stock options exercised $ —  $ 193  $ — 
Average aggregate intrinsic value for stock options outstanding $ 54 
Average aggregate intrinsic value for exercisable stock options $ 54 

Year ended
December 31,
2020		 December 31,
2019		 December 31,
2018
Share-based compensation expense for stock options $ 22  $ 41  $ 57 
Tax benefit for stock options exercised $ 6  $ 11  $ 14 
Unrecognized compensation expense for stock options $ — 
Weighted average period over which unrecognized compensation expense will be recognized (years) — 
Employee Non-vested Shares [Member]  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Schedule of Nonvested Share Activity [Table Text Block]
Restricted share activity and related information on a continuing basis was as follows:
Year ended
December 31, 2020 December 31, 2019 December 31, 2018
Weighted- Weighted- Weighted-
Average Average Average
Restricted Grant Date Restricted Grant Date Restricted Grant Date
Shares Fair Value Shares Fair Value Shares Fair Value
Outstanding at beginning of year 264  $ 58.34  302  $ 54.92  216  $ 46.73 
Granted 116  65.88  112  59.49  192  59.88 
Vested (150) 57.40  (126) 51.50  (102) 47.04 
Forfeited (17) 62.39  (24) 56.69  (4) 52.01 
Outstanding at end of year 213  $ 62.78  264  $ 58.34  302  $ 54.92 
Total fair value of shares vested during the year $ 9,180  $ 7,684  $ 5,758 

Year ended
December 31,
2020		 December 31,
2019		 December 31,
2018
Share-based compensation expense for restricted shares $ 7,310  $ 7,936  $ 6,633 
Tax benefit for the vesting of restricted shares $ 1,747  $ 1,951  $ 1,660 
Unrecognized compensation expense for restricted shares $ 7,767 
Weighted average period over which unrecognized compensation expense will be recognized (years) 1.7
Restricted share activity and related information on a discontinued basis was as follows:
Year ended
2020 2019 2018
Weighted- Weighted- Weighted-
Average Average Average
Restricted Grant Date Restricted Grant Date Restricted Grant Date
Shares Fair Value Shares Fair Value Shares Fair Value
Outstanding at beginning of year 13  $ 54.93  13  $ 55.16  11  $ 46.71 
Granted 6  63.24  5  59.07  10  59.46 
Vested (10) 58.43  (5) 48.85  (5) 47.00 
Forfeited (1) 63.49  —  —  (3) 51.68 
Outstanding at end of year 8  $ 60.83  13  $ 54.93  13  $ 55.16 
Total fair value of shares vested during the year $ 625  $ 270  $ 282 

Year ended
December 31,
2020		 December 31,
2019		 December 31,
2018
Share-based compensation expense for restricted shares $ 71  $ 65  $ 241 
Tax benefit for the vesting of restricted shares $ 71  $ 66  $ 72 
Unrecognized compensation expense for restricted shares $ 270 
Weighted average period over which unrecognized compensation expense will be recognized (years) 1.8
Key Employee Performance Share Based Plan [Member]  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Schedule of Nonvested Performance-based Units Activity [Table Text Block] The weighted average assumptions under the Monte Carlo simulation model were as follows for the years ended December 31, 2020, 2019 and 2018:
Year ended
December 31,
2020		 December 31,
2019		 December 31,
2018
Expected stock price volatility 23.5  % 23.4  % 24.3  %
Weighted average risk-free interest rate 1.4  % 2.5  % 2.2  %
    
Performance share activity was as follows and is presented as if the Company were to achieve its target level of performance, on a continuing basis:
Year ended
December 31,
2020		 December 31,
2019		 December 31,
2018
Weighted- Weighted- Weighted-
Average Average Average
Performance Grant Date Performance Grant Date Performance Grant Date
Shares Fair Value Shares Fair Value Shares Fair Value
Outstanding at beginning of year 58  $ 62.44  62  $ 58.40  66  $ 57.63 
Granted 38  69.15  28  61.42  17  72.30 
Additional shares awarded based on actual performance level achieved 13  51.13  —  —  —  — 
Vested (33) 51.13  (22) 63.57  —  — 
Forfeited (11) 66.37  (10) 62.77  (21) 67.28 
Outstanding at end of year 65  $ 67.62  58  $ 62.44  62  $ 58.40 
Year ended
December 31,
2020		 December 31,
2019		 December 31,
2018
Share-based compensation expense for performance shares $ 1,242  $ 1,103  $ 1,208 
Tax benefit for vesting of performance shares $ 306  $ 278  $ 304 
Unrecognized compensation expense for performance shares $ 2,095 
Weighted average period over which unrecognized compensation expense will be recognized (years) 1.9
Performance share activity was as follows and is presented as if the Company were to achieve its target level of performance, on a discontinued basis:
Year ended
2020 2019 2018
Weighted- Weighted- Weighted-
Average Average Average
Performance Grant Date Performance Grant Date Performance Grant Date
Shares Fair Value Shares Fair Value Shares Fair Value
Outstanding at beginning of year 4  $ 62.05  3  $ 57.90  3  $ 57.03 
Granted 1  69.15  2  61.03  1  72.30 
Additional shares awarded based on actual performance level achieved 1  51.13  —  —  —  — 
Vested (2) 51.13  (1) 63.57  —  — 
Forfeited (4) 65.69  —  —  (1) 67.28 
Outstanding at end of year —  $ —  4  $ 62.05  3  $ 57.90 
Year ended
December 31,
2020		 December 31,
2019		 December 31,
2018
Share-based compensation expense for performance shares $ (8) $ 73  $ 55 
Tax benefit for the vesting of performance shares $ (2) $ 18  $ 14 
Unrecognized compensation expense for performance shares $ — 
Weighted average period over which unrecognized compensation expense will be recognized (years) — 
Employee Stock Purchase Plan [Member]  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Schedule of Share-based Compensation, Employee Stock Purchase Plan, Activity [Table Text Block]
Employee stock purchase plan activity and related information was as follows on a continuing basis:
Year ended
December 31, December 31, December 31,
2020 2019 2018
Shares purchased by employees 14  11  8 
Average purchase price $ 44.24  $ 51.50  $ 50.62 
Weighted-average fair value of each purchase under the ESPP granted 1
$ 20.99  $ 13.68  $ 6.26 
Share-based compensation expense for ESPP shares $ 292  $ 150  $ 54 
1 Equal to the discount from the market value of the common stock at the end of each six month purchase period

Employee stock purchase plan activity and related information was as follows on a discontinued basis:
Year ended
December 31, December 31, December 31,
2020 2019 2018
Shares purchased by employees 1  1  1 
Average purchase price $ 44.35  $ 51.39  $ 50.64 
Weighted-average fair value of each purchase under the ESPP granted 1
$ 18.11  $ 13.48  $ 6.27 
Share-based compensation expense for ESPP shares $ 20  $ 13  $ 5 
1 Equal to the discount from the market value of the common stock at the end of each six month purchase period
Nonemployee Director Nonvested Shares Granted [Member]  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Schedule of Nonvested Share Activity [Table Text Block]
Non-employee director restricted share activity and related information was as follows on a continuing basis:
Year ended
December 31,
2020		 December 31,
2019		 December 31,
2018
Restricted Weighted- Restricted Weighted- Restricted Weighted-
Shares and Average Shares and Average Shares and Average
Deferred Grant Date Deferred Grant Date Deferred Grant Date
Stock Units Fair Value Stock Units Fair Value Stock Units Fair Value
Outstanding at beginning of year 16  $ 62.17  15  $ 58.50  11  $ 52.00 
Granted 24  42.88  16  62.17  16  58.58 
Vested (16) 62.00  (15) 64.05  (12) 52.09 
Forfeited —  —  —  —  —  — 
Outstanding at end of year 24  $ 42.88  16  $ 62.17  15  $ 58.50 
Total fair value of shares vested during the year $ 771  $ 970  $ 615 

Year ended
December 31,
2020		 December 31,
2019		 December 31,
2018
Share-based compensation expense for restricted shares $ 1,026  $ 970  $ 775 
Tax benefit for the vesting of restricted shares $ 253  $ 244  $ 195 
Unrecognized compensation expense for restricted shares $ 376 
Weighted average period over which unrecognized compensation expense will be recognized (years) 0.4