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Shareholders' Equity | 12 Months Ended
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Dec. 31, 2023
Stockholders' Equity Note [Abstract] |
Shareholders' Equity | Shareholders’ Equity Stock-Based Compensation The Company's active equity compensation plan, the 2014 Omnibus Equity Compensation Plan (the 2014 Plan), is the successor plan to the 2007 Equity Compensation Plan (the 2007 Plan) which was merged with and into the 2014 Plan in May 2014. Outstanding grants under the 2007 Plan will continue according to the terms in effect before the plan merger, but the outstanding shares will be issued or transferred under the 2014 Plan. The 2014 Plan provides for the grant of stock options, stock units, stock awards, stock appreciation rights, dividend equivalents and other stock-based awards. Permitted grantees under the 2014 Plan include employees, non-employee directors and consultants who perform services for the Company. The plan is administered by the Compensation Committee of the Board of Directors of the Company. As of December 31, 2023, the Company has restricted stock units and non-qualified stock options outstanding under the 2014 Plan. The Company recognized stock-based compensation expense in its Consolidated Financial Statements in 2023, 2022 and 2021 as follows:
|  | 2023 |  | 2022 |  | 2021
Stock-based compensation expense |  | $ | 31,308 |  |  | $ | 39,403 |  |  | $ | 41,451 |
Less: Deferred tax benefit |  | (5,989) |  |  | (7,340) |  |  | (8,444) |
Stock-based compensation expense, net of tax |  | $ | 25,319 |  |  | $ | 32,063 |  |  | $ | 33,007 |
Stock Options All outstanding stock options have performance-based vesting provisions that tie the vesting of stock options to the Company’s financial performance which are established at the time of grant. The Company’s stock options vest at a rate of 50 percent when a specified financial vesting target is achieved, and the remaining 50 percent when a second, higher-specified financial vesting target is achieved. Options do not vest solely due to the passage of time but as a result of achievement of the financial vesting targets. Options granted in December 2017 and thereafter include a service condition which requires a minimum two or four year waiting period from the grant date along with the attainment of the applicable financial vesting target. The targets are measured annually on December 31. The amount of stock-based compensation expense recognized in the period is based upon management’s estimate of when the financial vesting targets may be achieved. Any change in management’s estimate could result in the remaining amount of stock-based compensation expense to be accelerated, spread out over a longer period, or reversed. This may cause volatility in the recognition of stock-based compensation expense in future periods and could materially affect the Company’s earnings. The Company uses the Black-Scholes option pricing model to determine the fair value of stock options. The determination of the fair value of stock options on the date of grant using an option-pricing model is affected by the price of the Company’s common stock as well as other variables. These variables include expected stock price volatility over the term of the awards, actual and projected employee stock exercise behaviors, risk-free interest rate and expected dividends. The Company primarily uses historical data to estimate the variables used in the option-pricing model except expected volatility. The Company uses a combination of historical and implied volatility. The weighted average fair value of the Company’s stock options granted during 2023, 2022 and 2021 were $15.70, $17.95 and $14.94, respectively, using the following assumptions:
|  | 2023 |  | 2022 |  | 2021
Expected term (in years) |  | 5.32 |  | 5.84 |  | 5.60
Expected volatility |  | 24.32 | % |  | 27.79 | % |  | 28.67 | %
Expected dividend yield |  | 1.49 | % |  | 1.40 | % |  | 1.30 | %
Risk-free interest rate |  | 3.95 | % |  | 3.79 | % |  | 1.37 | %
The Company reviews its estimates of when vesting targets will be achieved based upon financial performance on an annual basis. The Company revised its estimates during 2023 which resulted in a decrease of $6,941 in stock-based compensation in comparison to the previous management estimate. The change in management’s estimate during 2022 resulted in a decrease of $4,915 and the change in estimate in 2021 resulted in an increase of $5,880 in stock-based compensation expense in comparison to the previous management estimates. The Company initiated a voluntary separation program to long-tenured employees in July 2022. Certain allowances provided to the participating employees in the program resulted in modifications to the Company's equity compensation plans related to the vesting of stock options during 2022 and the period in which the employee may exercise vested stock options after the termination of employment (See Note 14). These modifications impacted 52 grantees of stock options. The Company incurred additional stock-based compensation expense of $2,532 as a result of these modifications. During 2023 and 2022, the Company reversed previously recognized stock-option expense of $1,783 and $3,562, respectively, as a result of the cancellation of certain stock option awards to employees participating in the voluntary separation program. As of December 31, 2023, there was approximately 10,661,000 unvested employee stock options with an unrecognized compensation cost of $89,130 that the Company expects will vest and be expensed through 2027 with a weighted average period of 1.8 years. This table presents certain information relating to the Company’s stock option plans for 2023, 2022 and 2021:
|  | Number of Shares |  | Weighted Average Price
Balance as of December 31, 2020 |  | 18,495,000 |  |  | $ | 51.15 |
Granted |  | 3,323,000 |  |  | 60.48 |
Exercised |  | (1,719,000) |  |  | 29.73 |
Expired or canceled |  | (1,015,000) |  |  | 57.92 |
Balance as of December 31, 2021 |  | 19,084,000 |  |  | $ | 54.35 |
Granted |  | 2,215,000 |  |  | 61.74 |
Exercised |  | (1,537,000) |  |  | 35.03 |
Expired or canceled |  | (992,000) |  |  | 59.52 |
Balance as of December 31, 2022 |  | 18,770,000 |  |  | $ | 56.52 |
Granted |  | 1,871,000 |  |  | 62.01 |
Exercised |  | (2,148,000) |  |  | 45.11 |
Expired or canceled |  | (1,073,000) |  |  | 59.79 |
Balance as of December 31, 2023 |  | 17,420,000 |  |  | $ | 58.31 |
Exercisable as of December 31, 2023 |  | 6,759,000 |  |  | $ | 54.95 |
Available for future grant as of December 31, 2023 |  | 8,509,000 |  |  |
As of December 31, 2023 and 2022, there were 6,759,000 and 9,043,000 shares exercisable, respectively. The expiration dates for options outstanding at December 31, 2023 range from April 22, 2024 to December 15, 2033 with a weighted average remaining contractual life of 6.3 years. Upon exercise of stock options, the Company will issue new shares of its common shares. The Company does not hold any shares in treasury. The total intrinsic value of options exercised during 2023 and 2022 was $34,499 and $36,576, respectively. The total options exercisable as of December 31, 2023 had an intrinsic value of $64,577. The total options outstanding as of December 31, 2023 had an intrinsic value of $103,189. The total intrinsic value for options outstanding and options exercisable is calculated as the difference between the market value of the Company’s common stock and the exercise price of the shares. The market value of the Company’s common stock as of December 29, 2023 was $63.55 as reported by the Nasdaq Stock Market, LLC. Restricted Stock Units The Company's restricted stock units (RSUs) are equivalent to one share of the Company's common stock. These equity awards are time-based and are not based on the achievement of performance targets. RSUs accrue dividends based on dividends paid on the Company's common stock and are paid in cash upon satisfaction of the vesting requirements related to the underlying RSU. The majority of the Company's RSUs will vest on the third anniversary of the issuance date. There was no activity related to the Company's RSUs during 2021. This table presents certain information relating to the Company’s RSUs for 2023 and 2022:
|  | Number of RSUs |  | Weighted Average Grant-Date Fair Value
Balance as of December 31, 2021 |  | — |  |  | $ | — |
Granted |  | 467,000 |  |  | 61.27 |
Vested |  | — |  |  | — |
Expired or canceled |  | — |  |  | — |
Balance as of December 31, 2022 |  | 467,000 |  |  | $ | 61.27 |
Granted |  | 373,000 |  |  | 61.76 |
Vested |  | (20,000) |  |  | 57.39 |
Expired or canceled |  | (24,000) |  |  | 61.85 |
Balance as of December 31, 2023 |  | 796,000 |  |  | $ | 61.58 |
As of December 31, 2023, the unrecognized compensation cost associated with the Company's RSUs was $39,905, which will be expensed through 2026 over a weighed average remaining period of 1.78 years. Employee Stock Purchase Plan The Company has an employee stock purchase plan that provides for offerings of common stock to eligible employees at a price equal to 85 percent of the fair market value of the stock at the end of the stock purchase period, as defined. The Company has reserved 15,652,000 shares for issuance under this plan. At December 31, 2023, 12,482,000 cumulative shares have been issued. There were no material costs incurred by the Company related to the employee stock purchase plan in 2023, 2022 and 2021. Common Stock Buyback The Board of Directors, under multiple authorizations, has authorized the purchase of the Company’s common stock on the open market or through private transactions. As of December 31, 2023, the Company had approximately $282,079 of authorization remaining for the purchase of common stock. The following table provides the total number of shares repurchased and the related total costs in 2023, 2022 and 2021:
Year |  | Total Number of Shares Repurchased |  | Total Cost
2023 |  | 5,237,000 |  |  | $ | 310,769 |
2022 |  | 5,914,000 |  |  | 338,442 |
2021 |  | 6,747,000 |  |  | 411,534 |
The Company immediately retires its common stock when purchased. Upon retirement, the Company reduces Capital in excess of par value for the average capital per share outstanding and the remainder is charged against Retained earnings. If the Company reduces its Retained earnings to zero, any subsequent purchases of common stock will be charged entirely to Capital in excess of par value. Cash Dividends On May 31, 2023, the Board of Directors declared a cash dividend of $0.43 per share on the Company’s common stock, which was paid on June 21, 2023, to shareholders of record on June 12, 2023. On December 15, 2023, the Board of Directors declared a cash dividend of $0.46 per share on the Company’s common stock, which was paid on January 9, 2024, to shareholders of record on December 28, 2023. The cash dividends declared in 2023, 2022 and 2021 were $117,894, $112,429 and $107,840, respectively. The Board of Directors has indicated its intention to declare future cash dividends on a semiannual basis.

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