The Company's share-based compensation plans are described in Note 11, Share-Based Compensation, to the consolidated financial statements in Part II, Item 8, filed on the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
	(In thousands)
Stock option expense	$	2,853	$	3,517	$	6,116	$	7,026
Restricted stock expense	5,270		5,329		10,325		10,126
Performance restricted stock unit expense	4,726		4,377		5,872		5,012
Total pre-tax expense	$	12,849	$	13,223	$	22,313	$	22,164

Pre-tax share-based compensation expense is included in the consolidated statement of income in either Cost of sales or Selling, general and administrative expenses, depending on where the recipient’s cash compensation is reported.

The fair value of each stock option grant is estimated on the grant date using a Black-Scholes-Merton option pricing model. The following weighted average assumptions were used in the Black-Scholes-Merton model to estimate the fair values of stock options granted during the periods indicated:


	Six Months Ended June 30, 2025			Year Ended December 31, 2024
Expected volatility	22.7		%	28.2		%
Expected term (years)	5.0			5.0
Risk-free interest rate	4.07		%	4.31		%
Expected dividend yield	0.70		%	0.62		%
Black-Scholes-Merton fair value per stock option granted	$	46.21		$	56.42


	Shares	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life	Aggregate Intrinsic Value
	(In thousands)			(Years)	(In millions)
Outstanding at December 31, 2024	2,140	$	114.33
Granted	267	176.08
Exercised	(134)	102.66
Forfeited	(27)	159.79
Outstanding at June 30, 2025	2,246	$	121.83	6.4	$	133.0
Exercisable at June 30, 2025	1,728	$	107.70	5.6	$	126.7

The aggregate intrinsic value of stock options exercised during the six months ended June 30, 2025 was $10.1 million. The total fair value of stock options vested during the six months ended June 30, 2025 was $13.7 million. As of June 30, 2025, there was approximately $20.2 million of expected future pre-tax compensation expense related to the 0.5 million non-vested stock options outstanding, which is expected to be recognized over a weighted average period of approximately two years.

The following is a summary of the Company’s non-vested restricted stock activity and related information:


	Shares	Weighted Average Grant Date Fair Value
	(In thousands)
Non-vested restricted stock outstanding at December 31, 2024	277	$	159.71
Granted	163	176.25
Vested	(134)	150.80
Forfeited	(18)	167.84
Non-vested restricted stock outstanding at June 30, 2025	288	$	172.72

The total fair value of restricted stock vested during the six months ended June 30, 2025 was $20.3 million. As of June 30, 2025, there was approximately $41.1 million of expected future pre-tax compensation expense related to the 0.3 million non-vested restricted shares outstanding, which is expected to be recognized over a weighted average period of approximately two years.

The following is a summary of the Company’s non-vested performance restricted stock activity and related information:


	Shares	Weighted Average Grant Date Fair Value
	(In thousands)
Non-vested performance restricted stock outstanding at December 31, 2024	235	$	150.92
Granted	93	176.08
Performance assumption change 1	8	134.69
Vested	(92)	134.69
Forfeited	(1)	157.01
Non-vested performance restricted stock outstanding at June 30, 2025	243	$	166.13

As of June 30, 2025, there was approximately $15.9 million of expected future pre-tax compensation expense related to the 0.2 million non-vested restricted shares outstanding, which is expected to be recognized over a weighted average period of less than one year.