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Stock Based Compensation Plans | 3 Months Ended
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Mar. 31, 2023
Share-Based Payment Arrangement [Abstract] |
Stock Based Compensation Plans | 6. Stock Based Compensation Plans In the first quarter of 2023, the Company updated its Long-Term Incentive Program (“LTIP”) to provide employees with an award of stock options and newly issued restricted stock units (“RSUs”) and made an initial grant of performance share units ("PSUs") to members of the Company's Executive Leadership Team ("ELT"). In connection with these amendments, the awards, which were granted in the second quarter in previous years, were permanently accelerated to the first quarter in 2023. The stock option terms remain unchanged and are summarized in more detail in the Stock Based Compensation footnote within the Company’s 2022 Form 10-K. The Company recognizes the grant-date fair value for each of these awards, less estimated forfeitures, as compensation expense ratably over the vesting period. Stock Options The following table provides a summary of option activity:
|  |  |  |  |  |  | Weighted |  |  |  |
|  |  |  |  |  |  | Average |  |  |  |
|  |  |  | Weighted |  |  | Remaining |  |  |  |
|  |  |  | Average |  |  | Contractual |  |  | Aggregate |
|  |  |  | Exercise |  |  | Term |  |  | Intrinsic |
| Options |  |  | Price |  |  | (in Years) |  |  | Value |
Outstanding at December 31, 2022 |  | 11.9 |  |  | $ | 62.64 |  |  |  |  |  |  |
Granted |  | 1.0 |  |  |  | 83.13 |  |  |  |  |  |  |
Exercised |  | (0.3 | ) |  |  | 44.95 |  |  |  |  |  |  |
Cancelled |  | (0.1 | ) |  |  | 81.43 |  |  |  |  |  |  |
Outstanding at March 31, 2023 |  | 12.5 |  |  | $ | 64.43 |  |  |  | 5.9 |  |  | $ | 300.1 |
Exercisable at March 31, 2023 |  | 7.0 |  |  | $ | 51.25 |  |  |  | 3.8 |  |  | $ | 261.8 |
The following table provides information regarding the intrinsic value of stock options exercised and stock compensation expense related to stock option awards:
| Three Months Ended |
| March 31, |  |  | March 31, |
| 2023 |  |  | 2022 |
Intrinsic Value of Stock Options Exercised | $ | 10.7 |  |  | $ | 16.8 |
Stock Compensation Expense Related to Stock Option Awards | $ | 14.5 |  |  | $ | 2.8 |
Issued Stock Options |  | 1.0 |  |  |  | - |
Weighted Average Fair Value of Stock Options issued (per share) | $ | 23.93 |  |  |  | - |
Fair Value of Stock Options Issued | $ | 23.7 |  |  |  | - |
| Three Months Ended |
| March 31, |  |  | March 31, |
| 2023 |  |  | 2022 |
Risk-free interest rate |  | 4.0 | % |  |  | - |
Expected life in years |  | 7.3 |  |  |  | - |
Expected volatility |  | 12.3 | % |  |  | - |
Dividend yield |  | 1.3 | % |  |  | - |
Restricted Stock Units The Company updated its LTIP in the first quarter of 2023 to add RSUs to its annual employee compensation program. As a result of this amendment, the Company granted employees 88,480 RSUs with a total fair value of $7.4 at a weighted average grant date fair value of $83.13 per RSU. The annual RSU grants vest one-third on each of the first, second and third anniversaries of the grant date, subject to the recipient’s continued employment with the Company from the grant date through the applicable vesting date, and are settled with shares of the Company’s common stock. Additionally, in connection with the Hero Acquisition (see Note 10), 854,882 shares of restricted stock were issued in October 2022. The restricted stock will be recognized as compensation expense as the stock is subject to vesting requirements for individuals who received the restricted stock and will continue to be employed by the Company. The vesting requirements are satisfied at various dates over a three-year period from the date of the acquisition. Performance Stock Units In the first quarter of 2023, the Company granted PSUs to members of the Executive Leadership Team including the CEO, with an aggregate award equal to 19,650 PSUs. The PSUs were valued at a weighted average grant date fair value equal to $110.95 per PSU using a Monte Carlo model. The performance target is based on the Company's total shareholder return ("TSR") relative to a Company selected peer group. The PSUs vest on the later of (i) the third anniversary of the grant date, and (ii) the date that the Compensation & Human Capital Committee certifies the achievement of the applicable performance goals, in each case, subject to the recipient’s continued employment with the Company from the grant date through the vesting date, and the number of shares that may be issued ranges from 0% to 200% based on relative TSR during the three-year performance period.

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