Members' Equity |
3 Months Ended |
|---|---|
Mar. 31, 2026 | |
| Members' Equity [Abstract] | |
| Members' Equity | Note 14. Members’ Equity As of March 31, 2026 and December 31, 2025, the Company’s outstanding units consisted of Class A-1 Units and Class A-2 Units (collectively, “Class A Units”), Class B Units (incentive units), and Growth Participation Units and Value Creation Bonus Units (equivalent Class B Units) of Arcline Engineered Polymer Topco, L.P., Hawkeye TopCo, L.P., Connector TopCo, L.P., and Ovation TopCo, L.P. Class A Units are considered preferred units and have one vote per unit. In the event of distributions, liquidation, dissolution or winding up of the Company, the holders of Class A Units have preference to any distribution over the holders of any other units whereby the Class A Unit holders are entitled to receive an amount equal to their original investments. As of March 31, 2026 and December 31, 2025, there were 270,898,752 and 270,876,675 Class A Units outstanding, respectively. The Company has authorized 30,082,753 Class B Units for issuance under its share-based arrangements, as defined below. As of March 31, 2026 and December 31, 2025, 21,633,187 and 23,726,763 Class B Units, respectively, have been awarded under the Company’s share-based arrangements. Share-Based Arrangements Management Equity Plans Arcline Engineered Polymer Topco, L.P., Hawkeye TopCo, L.P., Connector TopCo, L.P., and Ovation TopCo, L.P. established Management Equity Plans (the “ME Plans”) under which the Board of Directors of each entity’s plan had the authority to grant Management Incentive Units (“MIUs”). The ME Plans were established to provide the participants incentive compensation via an equity award of Class B Units. The awards are intended to be “profits interests” under IRS regulations. As of March 31, 2026, there was approximately $22,623 of unrecognized compensation expense related to non-vested time-based vesting MIUs expected to vest, which is expected to be recognized over a weighted-average period of 2.8 years. As of March 31, 2026, there was approximately $36,114 of total unrecognized compensation expense related to non-vested performance-based vesting MIUs. Growth Participation Plans Arcline Engineered Polymer Topco, L.P., Hawkeye TopCo, L.P., Connector TopCo, L.P., and Ovation TopCo, L.P. established the Growth Participation Plans under which the Board of Directors of each entity had the authority to grant Growth Participation Units (“GPUs”) to employees. Compensation cost is only recognized when it is probable that the vesting conditions will be met. No compensation expense has been recognized for the three months ended March 31, 2026 and 2025. The unrecognized compensation expense related to the GPUs as of March 31, 2026 was $138,808. Value Creation Bonus Plan Ovation TopCo, L.P. established the Value Creation Bonus (“VCB”) Plan under which the Board of Directors had the authority to grant VCB units to employees. Compensation cost is only recognized when it is probable that the vesting conditions will be met. No compensation expense has been recognized for the three months ended March 31, 2026 and 2025. The unrecognized compensation expense related to the VCB units as of March 31, 2026 was $7,081. |