Quarterly report pursuant to Section 13 or 15(d)

Stockholders' Equity

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Stockholders' Equity
9 Months Ended
Sep. 30, 2020
Equity [Abstract]  
Stockholders' Equity Stockholders' Equity
Common Stock

The Company had 22,500,000 issued and outstanding shares of Common Stock, par value $0.01 per share ("Common Stock") as of both September 30, 2020 and December 31, 2019.
Accumulated Other Comprehensive Income (Loss)

The following table provides a summary of the changes in Accumulated other comprehensive income (loss) for the nine months ended September 30, 2020 (amounts in thousands):
Successor Company
  Accumulated Other Comprehensive Income (Loss)
Balance at December 31, 2019 $
Unrealized loss on interest rate cap recognized through Accumulated other comprehensive income (loss), net of income tax of $0
(1,997)
Interest cost of interest rate cap reclassified into Net loss, net of income tax of $0 (a)
184 
Balance at March 31, 2020 $ (1,804)
Unrealized loss on interest rate cap recognized through Accumulated other comprehensive income (loss), net of income tax of $0
(165)
Interest cost of interest rate cap reclassified into Net loss, net of income tax of $0 (a)
184 
Balance at June 30, 2020 $ (1,785)
Unrealized loss on interest rate cap recognized through Accumulated other comprehensive income (loss), net of income tax of $0
(661)
Interest cost of interest rate cap reclassified into Net loss, net of income tax of $0 (a)
186 
Balance at September 30, 2020 $ (2,260)

(a)  Amounts reclassified into Net loss are included in Interest expense on the condensed consolidated statements of operations.  See note 6, Derivatives for further information.

The following table provides a summary of the changes in Accumulated other comprehensive income (loss) for the period January 1, 2019 through August 31, 2019 (amounts in thousands):
Predecessor Company
  Accumulated Other Comprehensive Income (Loss)
Balance at December 31, 2018 $ 7,608 
Reclassifications of unrealized loss on derivatives into Net loss, net of income tax of $0 (a)
(468)
Balance at March 31, 2019 $ 7,140 
Reclassifications of unrealized loss on derivatives into Net loss, net of income tax of $0 (a)
(472)
Balance at June 30, 2019 $ 6,668 
Fresh start adjustment (b) (6,668)
Balance at August 31, 2019 $ — 

(a)  Amounts reclassified into Net loss are included in Interest expense on the condensed consolidated statements of operations.  See note 6, Derivatives for further information.
(b)  The remaining amount recognized in Accumulated other comprehensive income (loss) was evaluated to have no fair value upon the application of fresh start accounting pursuant to the Plan.
Incentive Award Plan

On August 3, 2020, the Board of Directors (the "Board") adopted the Monitronics International, Inc. 2020 Incentive Award Plan (the "Plan"), pursuant to which the company may grant cash, equity and equity-based incentive awards to eligible service providers. The Plan provides for the grant of non-qualified stock options, stock appreciation rights, restricted stock, restricted stock units, dividend equivalents and other stock or cash-based awards (collectively, "awards"). Non-employee directors of the Company, as well as employees and consultants of the Company or its subsidiaries (collectively, "participants") are eligible to receive awards under the Plan. The Plan authorizes the issuance of 2,500,000 shares of common stock.

Through September 30, 2020, and pursuant to the Plan, the company granted a total of 994,000 Performance-Based Restricted Stock Unit awards ("PRSUs") and a total of 426,000 Time-Based Restricted Stock Unit awards ("TRSUs") covering shares of common stock to certain of the company's directors, executives and senior leadership employees. Each RSU represents a contractual right to receive one share of the company’s common stock upon becoming fully vested and payable subject to the terms and conditions of the respective award agreement. Both the PRSUs and the TRSUs are subject to performance condition such that the awards are not payable unless there is a change in control of the company. Because a change in control is not probable of occurring as of the reporting date, no compensation expense has been recognized for either the PRSUs or the TRSUs for the three and nine months ended September 30, 2020.