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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2021
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from              to             
Commission File Number: 001-10994
 
VIRTUS INVESTMENT PARTNERS, INC.
(Exact name of registrant as specified in its charter)
Delaware 26-3962811
(State or other jurisdiction of
incorporation or organization)
 (I.R.S. Employer
Identification No.)
One Financial Plaza, Hartford, CT 06103
(Address of principal executive offices, including Zip Code)
(800) 248-7971
(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.01 par value VRTSThe NASDAQ Stock Market LLC
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes   No  
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes      No  
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
 
Large accelerated filerAccelerated filer
Non-accelerated filerSmaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.   
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes      No  
The number of shares outstanding of the registrant’s common stock was 7,649,806 as of April 23, 2021.



Table of Contents
VIRTUS INVESTMENT PARTNERS, INC.
INDEX
 
  Page
Item 1.
Item 2.
Item 3.
Item 4.
Item 1.
Item 1A.
Item 2.
Item 6.
"We," "us," "our," the "Company," and "Virtus" as used in this Quarterly Report on Form 10-Q, refer to Virtus Investment Partners, Inc., a Delaware corporation, and its subsidiaries.



Table of Contents
PART I – FINANCIAL INFORMATION
 
Item 1.    Financial Statements
Virtus Investment Partners, Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
(in thousands, except share data)March 31,
2021
December 31,
2020
Assets:
Cash and cash equivalents$228,260 $246,511 
Investments67,651 64,944 
Accounts receivable, net116,160 84,499 
Assets of consolidated investment products ("CIP")
Cash and cash equivalents of CIP170,725 86,980 
Cash pledged or on deposit of CIP734 6,358 
Investments of CIP2,299,607 2,333,277 
Other assets of CIP55,911 13,430 
Furniture, equipment and leasehold improvements, net13,489 14,488 
Intangible assets, net391,187 280,264 
Goodwill315,366 290,366 
Deferred taxes, net9,161 9,538 
Other assets33,908 36,288 
Total assets$3,702,159 $3,466,943 
Liabilities and Equity
Liabilities:
Accrued compensation and benefits$62,335 $122,514 
Accounts payable and accrued liabilities55,153 25,357 
Dividends payable8,593 9,013 
Contingent consideration (Note 3)137,664  
Debt195,726 201,212 
Other liabilities37,442 36,120 
Liabilities of CIP
Notes payable of CIP2,197,695 2,190,445 
Securities purchased payable and other liabilities of CIP156,374 45,829 
Total liabilities2,850,982 2,630,490 
Commitments and Contingencies (Note 14)
Redeemable noncontrolling interests112,482 115,513 
Equity:
Equity attributable to stockholders:
Common stock, $0.01 par value, 1,000,000,000 shares authorized; 11,876,994 shares issued and 7,649,679 shares outstanding at March 31, 2021, respectively, and 11,790,869 shares issued and 7,583,466 shares outstanding at December 31, 2020, respectively
119 118 
Additional paid-in capital1,284,643 1,298,002 
Retained earnings (accumulated deficit)(98,671)(135,259)
Accumulated other comprehensive income (loss)35 29 
Treasury stock, at cost, 4,227,315 and 4,207,403 shares at March 31, 2021 and December 31, 2020, respectively
(456,748)(451,749)
Total equity attributable to stockholders729,378 711,141 
Noncontrolling interests9,317 9,799 
Total equity 738,695 720,940 
Total liabilities and equity$3,702,159 $3,466,943 

The accompanying notes are an integral part of these condensed consolidated financial statements.
1

Table of Contents
Virtus Investment Partners, Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
Three Months Ended
March 31,
(in thousands, except per share data)20212020
Revenues
Investment management fees$173,269 $120,288 
Distribution and service fees20,348 9,460 
Administration and shareholder service fees22,560 14,653 
Other income and fees720 165 
Total revenues216,897 144,566 
Operating Expenses
Employment expenses91,759 66,130 
Distribution and other asset-based expenses32,294 19,409 
Other operating expenses19,580 18,885 
Operating expenses of consolidated investment products ("CIP")559 6,749 
Depreciation expense1,098 1,258 
Amortization expense9,465 7,533 
Total operating expenses154,755 119,964 
Operating Income (Loss)62,142 24,602 
Other Income (Expense)
Realized and unrealized gain (loss) on investments, net891 (7,544)
Realized and unrealized gain (loss) of CIP, net(4,687)(8,669)
Other income (expense), net1,771 612 
Total other income (expense), net(2,025)(15,601)
Interest Income (Expense)
Interest expense(2,314)(3,199)
Interest and dividend income136 752 
Interest and dividend income of investments of CIP23,876 29,229 
Interest expense of CIP(14,448)(24,486)
Total interest income (expense), net7,250 2,296 
Income (Loss) Before Income Taxes67,367 11,297 
Income tax expense (benefit)15,153 10,291 
Net Income (Loss)52,214 1,006 
Noncontrolling interests(15,626)(5,291)
Net Income (Loss) Attributable to Common Stockholders$36,588 $(4,285)
Earnings (Loss) per Share—Basic$4.79 $(0.58)
Earnings (Loss) per Share—Diluted$4.54 $(0.58)
Weighted Average Shares Outstanding—Basic7,633 7,422 
Weighted Average Shares Outstanding—Diluted8,052 7,422 

The accompanying notes are an integral part of these condensed consolidated financial statements.
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Virtus Investment Partners, Inc.
Condensed Consolidated Statements of Comprehensive Income
(Unaudited)
 
 Three Months Ended
March 31,
(in thousands)20212020
Net Income (Loss)$52,214 $1,006 
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustment, net of tax of $0 and $9 for the three months ended March 31, 2021 and 2020, respectively
6 (25)
Other comprehensive income (loss)6 (25)
Comprehensive income (loss)52,220 981 
Comprehensive (income) loss attributable to noncontrolling interests(15,626)(5,291)
Comprehensive Income (Loss) Attributable to Stockholders$36,594 $(4,310)
The accompanying notes are an integral part of these condensed consolidated financial statements.
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Virtus Investment Partners, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
 Three Months Ended
March 31,
(in thousands)20212020
Cash Flows from Operating Activities:
Net income (loss)$52,214 $1,006 
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation expense, intangible asset and other amortization11,214 10,878 
Stock-based compensation7,995 3,621 
Amortization of deferred commissions569 517 
Payments of deferred commissions(1,253)(518)
Equity in earnings of equity method investments(1,028)(657)
(Gain) loss on extinguishment of debt (705)
Realized and unrealized (gains) losses on investments, net(889)7,544 
Sales (purchases) of investments, net(25)2,153 
Deferred taxes, net377 7,175 
Changes in operating assets and liabilities:
Accounts receivable, net and other assets(27,102)6,377 
Accrued compensation and benefits, accounts payable, accrued liabilities and other liabilities(36,543)(64,917)
Operating activities of consolidated investment products ("CIP"):
Realized and unrealized (gains) losses on investments of CIP, net2,066 6,581 
Purchases of investments by CIP(250,865)(509,337)
Sales of investments by CIP377,388 273,962 
Net proceeds (purchases) of short term investments by CIP16,693 (396)
(Purchases) sales of securities sold short by CIP, net23 181 
Change in other assets of CIP287 (17)
Change in liabilities of CIP(970)932 
Amortization of discount on notes payable of CIP 3,300 
Net cash provided by (used in) operating activities150,151 (252,320)
Cash Flows from Investing Activities:
Capital expenditures and other asset purchases(2,560)(358)
Change in cash and cash equivalents of CIP due to consolidation (deconsolidation), net(48)9,724 
Net cash provided by (used in) investing activities(2,608)9,366 
Cash Flows from Financing Activities:
Payment of long term debt(5,913)(26,547)
Common stock dividends paid(7,117)(5,832)
Preferred stock dividends paid (2,084)
Repurchases of common shares(4,999)(10,000)
Stock options exercised66 101 
Taxes paid related to net share settlement of restricted stock units(15,163)(3,551)
Net subscriptions received from (redemptions/distributions paid to) noncontrolling interests(19,004)728 
Financing activities of CIP:
Payments on borrowings by CIP(35,543)(40,690)
Borrowings by CIP 402,516 
Net cash provided by (used in) financing activities(87,673)314,641 
Net increase (decrease) in cash, cash equivalents and restricted cash59,870 71,687 
Cash, cash equivalents and restricted cash, beginning of period339,849 321,939 
Cash, cash equivalents and restricted cash, end of period$399,719 $393,626 
Non-Cash Investing Activities:
Change in accrual for capital expenditures$45 $(20)
Contingent consideration$137,664 $ 
Non-Cash Financing Activities:
Increase (decrease) to noncontrolling interests due to consolidation (deconsolidation) of CIP, net$ $17,137 
Common stock dividends payable$6,219 $5,175 
Conversion of preferred stock to common stock$ $115,000 

(in thousands)March 31,
2021
December 31, 2020
Reconciliation of cash, cash equivalents and restricted cash
Cash and cash equivalents$228,260 $246,511 
Cash of CIP170,725 86,980 
Cash pledged or on deposit of CIP734 6,358 
Cash, cash equivalents and restricted cash at end of period$399,719 $339,849 

The accompanying notes are an integral part of these condensed consolidated financial statements.
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Virtus Investment Partners, Inc.
Condensed Consolidated Statements of Changes in Equity
(Unaudited)
Permanent EquityTemporary Equity
 Common StockPreferred StockAdditional
Paid-in
Capital
Retained Earnings (Accumulated
Deficit)
Accumulated
Other
Comprehensive
Income (Loss)
Treasury StockTotal
Attributed To
Stockholders
Non-
controlling
Interests
Total
Equity
Redeemable
Non-
controlling
Interests
(in thousands, except per share data)SharesPar ValueSharesAmountSharesAmount
Balances at December 31, 20196,809,280 $107 1,150,000 $110,843 $1,199,205 $(215,216)$9 3,927,607 $(419,249)$675,699 $10,558 $686,257 $63,845 
Net income (loss)— — — — — (4,285)— — — (4,285)255 (4,030)5,036 
Foreign currency translation adjustments— — — — — — (25)— — (25)— (25)— 
Net subscriptions (redemptions) and other— — — — — — — — —  (566)(566)18,234 
Cash dividends declared ($0.67 per common share)
— — — — (6,180)— — — — (6,180)— (6,180)— 
Repurchases of common shares(110,956)— — — — — — 110,956 (10,000)(10,000)— (10,000)— 
Conversion of preferred stock912,806 9 (1,150,000)(110,843)110,834 — — — —  —  — 
Issuance of common shares related to employee stock transactions84,283 1 — — 100 — — — — 101 — 101 — 
Taxes paid on stock-based compensation— — — — (3,550)— — — — (3,550)— (3,550)— 
Stock-based compensation— — — — 4,459 — — — — 4,459 — 4,459 — 
Balances at March 31, 20207,695,413 $117  $ $1,304,868 $(219,501)$(16)4,038,563 $(429,249)$656,219 $10,247 $666,466 $87,115 
Balances at December 31, 20207,583,466 $118  $ $1,298,002 $(135,259)$29 4,207,403 $(451,749)$711,141 $9,799 $720,940 $115,513 
Net income (loss)— — — — — 36,588 — — — 36,588 75 36,663 15,551 
Foreign currency translation adjustments— — — — — — 6 — — 6 — 6 — 
Net subscriptions (redemptions) and other— — — — — — — — —  (557)(557)(18,582)
Cash dividends declared ($0.82 per common share)
— — — — (6,696)— — — — (6,696)— (6,696)— 
Repurchases of common shares(19,912)— — — — — — 19,912 (4,999)(4,999)— (4,999)— 
Issuance of common shares related to employee stock transactions86,125 1 — — 65 — — — — 66 — 66 — 
Taxes paid on stock-based compensation— — — — (15,163)— — — — (15,163)(15,163)— 
Stock-based compensation— — — — 8,435 — — — — 8,435 — 8,435 — 
Balances at March 31, 20217,649,679 $119  $ $1,284,643 $(98,671)$35 4,227,315 $(456,748)$729,378 $9,317 $738,695 $112,482 


The accompanying notes are an integral part of these condensed consolidated financial statements.

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Virtus Investment Partners, Inc.
Notes to Condensed Consolidated Financial Statements
(Unaudited)
1. Organization and Business

Virtus Investment Partners, Inc. (the "Company," "we," "us," "our" or "Virtus"), a Delaware corporation, operates in the investment management industry through its subsidiaries.

The Company provides investment management and related services to individuals and institutions. The Company’s retail investment management services are provided to individuals through products consisting of U.S. 1940 Act mutual funds and Undertaking for Collective Investment in Transferable Securities ("UCITS" or "offshore funds" and collectively, with U.S. 1940 Act mutual funds, "open-end funds"), exchange traded funds ("ETFs"), closed-end funds (collectively, with open-end funds and ETFs, "funds") and retail separate accounts. Institutional investment management services are offered through separate accounts and pooled or commingled structures to a variety of institutional clients. The Company also provides subadvisory services to other investment advisers and serves as the collateral manager for structured products.


2. Basis of Presentation and Significant Accounting Policies

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, these financial statements contain all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of the Company’s financial condition and results of operations. Operating results for the three months ended March 31, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021.
These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 ("2020 Annual Report on Form 10-K") filed with the Securities and Exchange Commission (the "SEC"). The Company’s significant accounting policies, which have been consistently applied, are summarized in its 2020 Annual Report on Form 10-K.

New Accounting Standards Implemented

In January 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2020-01, Investments-Equity Securities (Topic 321), Investments-Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815). This standard clarifies the interaction of the accounting for equity securities under Topic 321, the accounting for equity method investments in Topic 323 and the accounting for certain forward contracts and purchased options in Topic 815. The Company adopted this standard on January 1, 2021. The adoption of this standard did not have a material impact on the Company's condensed consolidated financial statements.

In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This standard simplifies the accounting for income taxes by removing certain exceptions to the general principles of Topic 740, Income Taxes, and also improves consistent application by clarifying and amending existing guidance. The Company adopted this standard on January 1, 2021. The adoption of this standard did not have a material impact on the Company's condensed consolidated financial statements.


3. Revenues

The Company's revenues are recognized when a performance obligation is satisfied, which occurs when control of the services is transferred to customers. Investment management fees, distribution and service fees, and administration and shareholder service fees are generally calculated as a percentage of average net assets of the investment portfolios managed. The net asset values from which investment management, distribution and service, and administration and shareholder service fees are calculated are variable in nature and subject to factors outside of the Company's control such as additional investments, withdrawals and market performance. Because of this, these fees are considered constrained until the end of the contractual
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measurement period (monthly or quarterly), which is when asset values are generally determinable.

    Revenue Disaggregated by Source
    
The following table summarizes revenue by source:
 Three Months Ended
March 31,
(in thousands)20212020
Investment management fees
Open-end funds$88,872 $59,108 
Closed-end funds12,940 10,179 
Retail separate accounts37,512 25,714 
Institutional accounts32,438 22,917 
Structured products1,259 1,574 
Other products248 796 
Total investment management fees173,269 120,288 
Distribution and service fees20,348 9,460 
Administration and shareholder service fees22,560 14,653 
Other income and fees720 165 
Total revenues$216,897 $144,566 
    

4. AllianzGI Strategic Partnership

On February 1, 2021, the Company completed the actions necessary to finalize its strategic partnership with Allianz Global Investors ("AllianzGI"), announced in July 2020, pursuant to which the Company became the investment adviser, distributor and/or administrator of certain of AllianzGI's open-end, closed-end and retail separate account assets. Additionally, as part of the strategic partnership, AllianzGI’s Dallas-based Value Equity team joined the Company as a newly established affiliated manager, NFJ Investment Group. Assets acquired in connection with the transaction primarily consisted of definite-lived intangible assets representing open-end, closed-end and retail separate account investment contracts as well as indefinite-lived assets consisting of goodwill related to the NFJ Investment Group. The NFJ Investment Group revenues and operating income was not material to the Company's results of operations for the three months ended March 31, 2021.
Transaction consideration consists of variable cash payments based on a percentage of the investment management fees earned on certain open-end, closed-end and retail separate account assets adopted under the transaction. Payments are to be made annually around the anniversary of the closing date of the transaction over the next seven years. The transaction consideration is being accounted for as contingent consideration with the estimated future payments of $137.7 million as of March 31, 2021 being recorded as a liability on the Company's Condensed Consolidated Balance Sheet. In addition, the Company capitalized $7.7 million of costs associated with certain assets acquired.
The following table summarizes the identified acquired assets:
February 1, 2021
(in thousands)Approximate Fair ValueWeighted Average Useful Life
Definite-lived intangible assets:
Open-end and closed-end fund investment contracts$101,447 13 years
Retail separate account investment contracts17,000 6 years
Trade name1,941 8 years
Total definite-lived intangible assets$120,388 
Goodwill25,000 
Total assets acquired $145,388 
    
    
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5. Intangible Assets, Net

Below is a summary of intangible assets, net:
(in thousands)March 31, 2021December 31, 2020
Definite-lived intangible assets:
Investment contracts and other$609,958 $489,570 
Accumulated amortization(262,287)(252,822)
Definite-lived intangible assets, net347,671 236,748 
Indefinite-lived intangible assets43,516 43,516 
Total intangible assets, net$391,187 $280,264 
    
Activity in goodwill and intangible assets, net was as follows: 
 Three Months Ended March 31,
(in thousands)20212020
Intangible assets, net
Balance, beginning of period$280,264 $310,391 
Additions120,388  
Amortization(9,465)(7,533)
Balance, end of period$391,187 $302,858 

Definite-lived intangible asset amortization for the remainder of fiscal year 2021 and succeeding fiscal years is estimated as follows:
Fiscal Year
Amount
(in thousands)
Remainder of 202131,145 
202241,440 
202340,778 
202435,136 
202530,368 
2026 and thereafter168,804 
$347,671 


6. Investments
Investments consist primarily of investments in the Company's sponsored products. The Company's investments, excluding the assets of consolidated investment products ("CIP") discussed in Note 16, at March 31, 2021 and December 31, 2020 were as follows:
(in thousands)March 31, 2021December 31, 2020
Investment securities - fair value$40,904 $39,990 
Equity method investments (1)13,568 12,676 
Nonqualified retirement plan assets11,177 10,612 
Other investments2,002 1,666 
Total investments$67,651 $64,944 

(1)     The Company's equity method investments are valued on a three-month lag based upon the availability of financial information. 
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Investment Securities - fair value
Investment securities - fair value consist of investments in the Company's sponsored funds, separately managed accounts and trading debt securities. The composition of the Company’s investment securities - fair value was as follows:
March 31, 2021December 31, 2020
(in thousands)CostFair ValueCostFair Value
Investment Securities - fair value
Sponsored funds$27,323 $26,598 $22,378 $25,909 
Equity securities10,467 14,303 9,614 14,078 
Debt securities7 3 7 3 
Total investment securities - fair value$37,797 $40,904 $31,999 $39,990 

For the three months ended March 31, 2021, the Company recognized realized gains of $0.8 million on the sale of its investment securities - fair value. For the three months ended March 31, 2020, the Company recognized realized losses of $0.3 million on the sale of its investment securities - fair value.


7. Fair Value Measurements
The Company’s assets and liabilities measured at fair value on a recurring basis, excluding the assets and liabilities of CIP discussed in Note 16, as of March 31, 2021 and December 31, 2020 by fair value hierarchy level were as follows:
March 31, 2021  
(in thousands)Level 1Level 2Level 3Total
Assets
Cash equivalents$178,556 $ $ $178,556 
Investment securities - fair value
Sponsored funds26,598   26,598 
Equity securities14,303   14,303 
Debt securities 3  3 
Nonqualified retirement plan assets11,177   11,177 
Total assets measured at fair value$230,634 $3 $ $230,637 

December 31, 2020  
(in thousands)Level 1Level 2Level 3Total
Assets
Cash equivalents$207,101 $ $ $207,101 
Investment securities - fair value
Sponsored funds25,909   25,909 
Equity securities14,078   14,078 
Debt securities 3  3 
Nonqualified retirement plan assets10,612   10,612 
Total assets measured at fair value$257,700 $3 $ $257,703 

The following is a discussion of the valuation methodologies used for the Company’s assets measured at fair value:

Cash equivalents represent investments in money market funds. Cash investments in money market funds are valued using published net asset values and are classified as Level 1.

Sponsored funds represent investments in open-end funds, closed-end funds and ETFs for which the Company acts as the investment manager. The fair value of open-end funds is determined based on their published net asset values and are
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categorized as Level 1. The fair value of closed-end funds and ETFs is determined based on the official closing price on the exchange on which they are traded and are categorized as Level 1.

Equity securities represent securities traded on active markets and are valued at the official closing price (typically the last sale or bid) on the exchange on which the securities are primarily traded and are categorized as Level 1.

Debt securities represent investments in senior secured bank loans and are based on evaluated quotations received from independent pricing services and are categorized as Level 2.

Nonqualified retirement plan assets represent mutual funds within a nonqualified retirement plan whose fair value is determined based on their published net asset value and are categorized as Level 1.

Cash, accounts receivable, accounts payable and accrued liabilities equal or approximate fair value based on the short-term nature of these instruments.

The Company had no Level 3 investments for the three-month periods ended March 31, 2021 and 2020, respectively.


8. Equity Transactions

Dividends Declared    

On February 24, 2021, the Company declared a quarterly cash dividend of $0.82 per common share to be paid on May 14, 2021 to stockholders of record at the close of business on April 30, 2021.

Common Stock Repurchases    

During the three months ended March 31, 2021, the Company repurchased 19,912 common shares at a weighted average price of $251.07 per share, for a total cost, including fees and expenses, of $5.0 million under its share repurchase program. As of March 31, 2021, 702,730 shares remained available for repurchase. Under the terms of the program, the Company may repurchase shares of its common stock from time to time at its discretion through open market repurchases, privately negotiated transactions and/or other mechanisms, depending on price and prevailing market and business conditions. The program, which has no specified term, may be suspended or terminated at any time.


9. Accumulated Other Comprehensive Income (Loss)

The changes in accumulated other comprehensive income (loss) by component for the three months ended March 31, 2021 and 2020 were as follows:
(in thousands)Foreign 
Currency
Translation
Adjustments
Balance at December 31, 2020$29 
Foreign currency translation adjustments, net of tax of $
6 
Net current-period other comprehensive income (loss)6 
Balance at March 31, 2021$35 
(in thousands)Foreign 
Currency
Translation
Adjustments
Balance at December 31, 2019$9 
Foreign currency translation adjustments, net of tax of $9
(25)
Net current-period other comprehensive income (loss)(25)
Balance at March 31, 2020$(16)


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10. Stock-Based Compensation

Pursuant to the Company's Omnibus Incentive and Equity Plan (the "Plan"), officers, employees and directors may be granted equity-based awards, including restricted stock units ("RSUs"), performance stock units ("PSUs"), stock options and unrestricted shares of common stock. At March 31, 2021, 271,890 shares of common stock remained available for issuance of the 2,820,000 shares that are authorized for issuance under the Plan.
    
Stock-based compensation expense is summarized as follows:
Three Months Ended March 31,
20212020
(in thousands)
Stock-based compensation expense$7,995 $3,621 

Restricted Stock Units

Each RSU entitles the holder to one share of common stock when the restriction expires. RSUs may be time-vested or performance-contingent (PSUs) that convert into RSUs after performance measurement is complete and generally vest in one to three years. Shares that are issued upon vesting are newly issued shares from the Plan and are not issued from treasury stock.

RSU activity, inclusive of PSUs, for the three months ended March 31, 2021 is summarized as follows: 
Number
of Shares
Weighted Average
Grant Date
Fair Value
Outstanding at December 31, 2020533,185 $106.19 
Granted88,495 $262.68 
Forfeited(17,220)$133.62 
Settled(143,139)$125.81 
Outstanding at March 31, 2021461,321 $129.09 
For the three months ended March 31, 2021 and 2020, a total of 57,885 and 41,426 RSUs, respectively, were withheld by the Company as a result of net share settlements to settle minimum employee tax withholding obligations. The Company paid $15.2 million and $3.6 million for the three months ended March 31, 2021 and 2020, respectively, in minimum employee tax withholding obligations related to RSUs withheld for net share settlements. These net share settlements had the effect of share repurchases by the Company as they reduced the number of shares that would have been otherwise issued as a result of the vesting.
During the three months ended March 31, 2021, the Company granted 24,798 PSUs that contain performance-based metrics in addition to a service condition. Compensation expense for PSUs is generally recognized over a three-year service period based upon the value determined using a combination of (i) the intrinsic value method, for awards that contain a performance metric that represents a "performance condition" in accordance with ASC 718, and (ii) the Monte Carlo simulation valuation model for awards that contain a "market condition" performance metric under ASC 718. Compensation expense for PSU awards that contain a market condition is fixed at the date of grant and will not be adjusted in future periods based upon the achievement of the market condition. Compensation expense for PSU awards with a performance condition is recorded each period based upon a probability assessment of the expected outcome of the performance metric with a final adjustment upon measurement at the end of the performance period.
    
As of March 31, 2021, unamortized stock-based compensation expense for unvested RSUs and PSUs was $35.2 million, with a weighted-average remaining contractual life of 1.5 years.


11. Earnings (Loss) Per Share
Earnings (loss) per share ("EPS") is calculated in accordance with ASC 260, Earnings per Share. Basic EPS is computed by dividing net income (loss) attributable to common stockholders by the weighted-average number of common shares outstanding for the period, excluding dilution for potential common stock issuances. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock,
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including: (i) shares issuable upon the vesting of RSUs and stock option exercises using the treasury stock method and (ii) shares issuable upon the conversion of the Company's previously outstanding mandatory convertible preferred stock ("MCPS"), as determined under the if-converted method. For purposes of calculating diluted EPS, preferred stock dividends have been subtracted from net income (loss) in periods in which utilizing the if-converted method would be anti-dilutive.

The computation of basic and diluted EPS is as follows: 
 Three Months Ended March 31,
(in thousands, except per share amounts)20212020
Net Income (Loss)$52,214 $1,006 
Noncontrolling interests(15,626)(5,291)
Net Income (Loss) Attributable to Common Stockholders$36,588 $(4,285)
Shares:
Basic: Weighted-average number of shares outstanding7,633 7,422 
Plus: Incremental shares from assumed conversion of dilutive instruments419  
Diluted: Weighted-average number of shares outstanding8,052 7,422 
Earnings (Loss) per Share—Basic$