Stock-Based Compensation

6 Months Ended

Jun. 30, 2024

Share-Based Payment Arrangement [Abstract]

Pursuant to the 2022 Stock Incentive Plan, we grant stock-only stock appreciation rights ("SOSARs"), restricted stock units ("RSUs"), and performance stock units ("PSUs") to employees and non-employee directors. SOSARs and RSUs generally vest in two equal installments on the second and third anniversary of the grant date. PSUs are subject to service, market and performance vesting conditions, and the quantity of shares that vest will range from 0% to 300% of the targeted number of shares.

Total stock-based compensation expense was as follows:


	Three months ended June 30,				Six months ended June 30,
	2024		2023		2024		2023
Stock-based compensation	$	46,160	$	31,467	$	82,841	$	52,137
Stock-based compensation, net of income taxes	$	38,932	$	27,205	$	70,218	$	43,901
Total capitalized stock-based compensation included in leasehold improvements, property and equipment, net on the condensed consolidated balance sheets	$	920	$	795	$	1,598	$	1,381
Excess tax benefit on stock-based compensation recognized in provision for income taxes on the condensed consolidated statements of income and comprehensive income	$	2,833	$	11,848	$	16,088	$	22,010

SOSARs

A summary of SOSAR award activity was as follows (in thousands, except per share data):


	Shares	Weighted-Average Exercise Price per Share		Weighted-Average Remaining Contractual Life (Years)	Aggregate Intrinsic Value
Outstanding, January 1, 2024	14,738	$	26.05		$	290,156
Granted	2,401	53.09
Exercised	(2,257)	22.27
Forfeited	(269)	34.40
Outstanding, June 30, 2024	14,613	30.93		4.45	463,660
Exercisable, June 30, 2024	6,641	21.82		2.96	271,122
Vested and expected to vest, June 30, 2024	13,904	30.45		4.38	447,797

RSUs

A summary of RSU award activity was as follows (in thousands, except per share data):


	Shares	Weighted-Average Grant Date Fair Value per Share
Outstanding, January 1, 2024	3,004	$	32.08
Granted	1,278	53.92
Vested	(887)	31.90
Forfeited	(177)	37.07
Outstanding, June 30, 2024	3,218	40.54
Vested and expected to vest, June 30, 2024	2,669	39.94

PSUs

A summary of PSU award activity was as follows (in thousands, except per share data):


	Shares	Weighted-Average Grant Date Fair Value per Share
Outstanding, January 1, 2024	2,794	$	31.24
Granted	849	52.77
Vested	(777)	29.59
Forfeited	(47)	33.75
Outstanding, June 30, 2024	2,819	38.14
Vested and expected to vest, June 30, 2024*	5,646	39.13

*The vested and expected to vest total above represents outstanding base PSUs, adjusted for expected payout amounts in line with current and future estimated performance levels.