XML 23 R15.htm IDEA: XBRL DOCUMENT
v3.25.3

Stock Based Compensation Plans | 9 Months Ended
--- | ---
Sep. 30, 2025
Share-Based Payment Arrangement [Abstract] |
Stock Based Compensation Plans | 6. Stock Based Compensation Plans The Company's Long-Term Incentive Program (“LTIP”) provides employees with an award of stock options and grants of restricted stock units (“RSUs”), and grants of performance share units ("PSUs") to members of the Company's Executive Leadership Team ("ELT"). Awards are granted in the first quarter of each year. The Company recognizes the grant-date fair value for each of these awards, less estimated forfeitures, as compensation expense ratably over the vesting period. For employees and directors that meet retirement eligibility requirements, the expense related to share-based compensation is recognized on the date of grant as there is no future service period required for the awards to vest. Stock Options The following table provides a summary of option activity:
|  |  |  |  |  |  | Weighted |  |  |  |
|  |  |  |  |  |  | Average |  |  |  |
|  |  |  | Weighted |  |  | Remaining |  |  |  |
|  |  |  | Average |  |  | Contractual |  |  | Aggregate |
|  |  |  | Exercise Price |  |  | Term |  |  | Intrinsic |
| Options |  |  | (per share) |  |  | (in Years) |  |  | Value |
Outstanding at December 31, 2024 |  | 8.4 |  |  | $ | 77.10 |  |  |  |  |  |  |
Granted |  | 1.0 |  |  |  | 110.32 |  |  |  |  |  |  |
Exercised |  | (0.5 | ) |  |  | 58.39 |  |  |  |  |  |  |
Cancelled |  | (0.2 | ) |  |  | 91.36 |  |  |  |  |  |  |
Outstanding at September 30, 2025 |  | 8.7 |  |  | $ | 81.79 |  |  |  | 5.9 |  |  | $ | 87.8 |
Exercisable at September 30, 2025 |  | 5.9 |  |  | $ | 73.59 |  |  |  | 4.6 |  |  | $ | 83.7 |
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 |  |  | Nine Months Ended |
| September 30, |  |  | September 30, |  |  | September 30, |  |  | September 30, |
| 2025 |  |  | 2024 |  |  | 2025 |  |  | 2024 |
Intrinsic Value of Stock Options Exercised | $ | 1.9 |  |  | $ | 5.3 |  |  | $ | 22.6 |  |  | $ | 86.6 |
Stock Compensation Expense Related to Stock Option Awards | $ | 4.5 |  |  | $ | 4.3 |  |  | $ | 22.5 |  |  | $ | 24.8 |
Issued Stock Options |  | 0.0 |  |  |  | 0.0 |  |  |  | 1.0 |  |  |  | 1.0 |
Weighted Average Fair Value of Stock Options issued (per share) | $ | 0.0 |  |  | $ | 0.0 |  |  | $ | 32.92 |  |  | $ | 29.90 |
Fair Value of Stock Options Issued | $ | 0.0 |  |  | $ | 0.0 |  |  | $ | 34.8 |  |  | $ | 31.1 |
The following table provides a summary of the assumptions used in the valuation of issued stock options:
| Three Months Ended |  | Nine Months Ended
| September 30, |  | September 30, |  | September 30, |  | September 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
Risk-free interest rate | N/A |  | N/A |  | 4.2% |  | 4.2%
Expected life in years | N/A |  | N/A |  | 7.0 |  | 7.2
Expected volatility | N/A |  | N/A |  | 22.6% |  | 22.3%
Dividend yield | N/A |  | N/A |  | 1.1% |  | 1.1%
Restricted Stock Units The Company granted employe es 143,260 RSUs with a total fair value of $15.0 at a weighted average grant date fair value of $105.03 per RSU during the nine months ended September 30, 2025 and granted employees 105,600 RSUs with a total fair value of $10.8 at a weighted average grant date fair value of $101.93 per RSU during the nine months ended September 30, 2024. The annual RSU grants vest in one-third increments 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 within 60 days following the applicable vesting date. In connection with the Hero Acquisition, 854,882 shares of restricted stock were issued to certain individuals in October 2022 with a total fair value of $61.5. This restricted stock is recognized as compensation expense ratably over the vesting period if those individuals 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, including 641,157 shares which have vested through September 30, 2025, and the final 213,725 shares vested in October of 2025. The restricted stock expense associated with the Hero Acquisition for th e nine months ended September 30, 2025 and 2024 was $5.8 and $17.2, respectively, and is included in the non-cash compensation expense caption in the condensed consolidated statement of cash flows. In connection with the Touchland Acquisition, Touchland’s founder was granted rights to receive shares of our common stock valued at $50.0, with 50% of such shares vesting at each of the first and second year anniversaries of the closing. The value of common stock received by Touchland's founder will be recognized as a compensation expense ratably over the two-year vesting period if the individual continues to be employed by the Company. The restricted stock expense associated with the Touchland Acquisition for the nine months ended September 30, 2025 was $5.2, and is included in the non-cash compensation expense caption in the condensed consolidated statement of cash flows. Refer to Note 10 for additional details. Performance Stock Units In the first quarter of each of 2025 and 2024, respectively, the Company granted PSUs to members of the ELT, including the CEO, with an aggregate award of 18,140 and 19,960 PSUs, re spectively. The PSUs were valued at a weighted average grant date fair value equal to $136.76 in 2025 and $122.24 i n 2024 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 Board's 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. The number of shares that may be issued ranges from 0% to 200% based on relative TSR during the three-year performance period. Employee Stock Purchase Plan The Company’s Employee Stock Purchase Plan (“ESPP”) was adopted in February 2023 by the Company’s Board of Directors and became effective in April 2023 upon approval by the Company’s stockholders. There are 750,000 shares of Common Stock reserved for issuance under the ESPP. The ESPP, which is intended to be an “employee stock purchase plan” under Section 423 of the Internal Revenue Code, permits eligible employees to purchase Common Stock through after-tax payroll deductions. Currently, the purchase price under the ESPP is 85% of the fair market value of our Common Stock on the last trading day of the applicable quarterly purchase period. The maximum value of Common Stock that an eligible employee may purchase each calendar year is the lesser of 10% of an eligible employee’s annual pay and $25,000. There are four purchase periods in each calendar year under the ESPP, which begin on the first business day of each calenda r quarter and end on the last business day of each calendar quarter. The first purchase period commenced in January 2025. There are 684,628 Common Shares remaining as of September 30, 2025 that are reserved for issuance under the ESPP.

X
- Definition The entire disclosure for share-based payment arrangement. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (l) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480429/718-10-50-2 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480429/718-10-50-2 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (h)(2)(i) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480429/718-10-50-2 Reference 4: http://www.xbrl.org/2003/role/exampleRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a)(1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480429/718-10-50-2 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/718/tableOfContent Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (h)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480429/718-10-50-2 + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsSharebasedPaymentsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration