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Share-Based Compensation (Tables) | 6 Months Ended
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Jun. 30, 2023
Share-Based Payment Arrangement [Abstract] |
Summary of Stock Option Assumptions | The following weighted average assumptions were used to determine the fair value of the stock options granted on the original grant date for expense recognition purposes for options granted during the six months ended June 30, 2023 and 2022 using a Black Scholes-Merton Model:
| Six months ended
| June 30, 2023 |  | June 30, 2022
Directors and SLT 1: |  |  |
Expected (annual) dividend rate | $0.48 |  | $0.38
Expected volatility | 37.89% |  | 35.95%
Risk-free interest rate | 4.39% |  | 2.17%
Expected life (in years) | 4.0 |  | 4.0
Employees: |  |  |
Expected (annual) dividend rate | $0.48 |  | $0.38
Expected volatility | 38.52% |  | 37.29%
Risk-free interest rate | 4.40% |  | 2.11%
Expected life (in years) | 3.0 |  | 3.0
1 SLT consists of officers and key members of management.
The following weighted average assumptions were used to determine the fair value of the PSUs granted on the original grant date for expense recognition purposes for PSUs granted during the six months ended June 30, 2023 and 2022 using a Monte Carlo Model:
| Six months ended
| June 30, 2023 |  | June 30, 2022
Expected (annual) dividend rate | $0.48 |  | $0.38
Expected volatility | 32.71% |  | 37.60%
Risk-free interest rate | 4.66% |  | 2.00%
Expected life (in years) | 2.8 |  | 2.8
Summary of Stock Options Outstanding | The following is a summary of stock options vested and exercisable as of June 30, 2023:
Range of Exercise Prices |  | Number of Shares |  | Weighted Average Remaining Contractual Life (in years) |  | Weighted Average Exercise Price |  | Intrinsic Value (in thousands)
$ | 20.92 |  | - | $ | 41.37 |  |  | 1,048,962 |  |  | 4.79 |  | $ | 37.06 |  |  | $ | 60,579 |
$ | 42.42 |  | - | $ | 55.30 |  |  | 364,787 |  |  | 6.99 |  | 46.34 |  |  | 17,682 |
$ | 55.50 |  | - | $ | 97.89 |  |  | 137,879 |  |  | 7.66 |  | 72.62 |  |  | 3,060 |
|  | Total |  | 1,551,628 |  |  | 5.56 |  | $ | 42.40 |  |  | $ | 81,321 |
Summary of Stock Option Activity | A summary of stock option activity under the plans is as follows:
Stock Options | Shares |  | Weighted Average Exercise Price
Outstanding at December 31, 2022 | 3,040,347 |  |  | $ | 45.20 |
Granted | 213,164 |  |  | 91.49 |
Exercised | (532,830) |  |  | 43.62 |
Forfeited or Expired | (38,727) |  |  | 51.88 |
Outstanding at June 30, 2023 | 2,681,954 |  |  | $ | 49.09 |
Exercisable at June 30, 2023 | 1,551,628 |  |  | $ | 42.40 |
Summary of Unvested Restricted Stock Awards | A summary of the unvested restricted stock awards is as follows:
| Shares |  | Weighted Average Grant Date Fair Value
Unvested at December 31, 2022 | 144,826 |  |  | $ | 50.00 |
Granted | 46,492 |  |  | 89.26 |
Vested | (60,373) |  |  | 48.67 |
Forfeited | (1,112) |  |  | 56.35 |
Unvested at June 30, 2023 | 129,833 |  |  | $ | 64.62 |
Schedule of Nonvested Key Employee Award Activity | A summary of the unvested Key Employee Awards is as follows:
| Shares |  | Weighted Average Grant Date Fair Value
Unvested at December 31, 2022 | 26,599 |  |  | $ | 80.18 |
Granted | — |  |  | — |
Vested | — |  |  | — |
Forfeited | — |  |  | — |
Unvested at June 30, 2023 | 26,599 |  |  | $ | 80.18 |
Schedule of Nonvested Performance-based Units Activity | A summary of the unvested PSUs is as follows:
| Shares |  | Weighted Average Grant Date Fair Value
Unvested at December 31, 2022 | 62,659 |  |  | $ | 54.92 |
Granted | 38,759 |  |  | 126.61 |
Vested | — |  |  | — |
Forfeited | — |  |  | — |
Unvested at June 30, 2023 1 | 101,418 |  |  | $ | 82.32 |
1 Consists of 14,817 PSUs cliff vesting December 31, 2023, 47,842 PSUs cliff vesting December 31, 2024, and 38,759 PSUs cliff vesting December 31, 2025.
Summary of Share-Based Compensation Expense | A summary of share-based compensation is as follows:
| Three Months Ended |  | Six Months Ended
| June 30, 2023 |  | June 30, 2022 |  | June 30, 2023 |  | June 30, 2022
Grant date fair value of awards during the period: | (in thousands)
Options | $ | 445 |  |  | $ | 650 |  |  | $ | 5,118 |  |  | $ | 5,499 |
PSUs | 1,666 |  |  | 219 |  |  | 4,907 |  |  | 2,081 |
Restricted stock | 1,244 |  |  | 1,018 |  |  | 4,150 |  |  | 3,155 |
Total | $ | 3,355 |  |  | $ | 1,887 |  |  | $ | 14,175 |  |  | $ | 10,735 |
Share-based compensation expense: |  |  |  |  |  |  |
Options | $ | 2,311 |  |  | $ | 2,339 |  |  | $ | 4,376 |  |  | $ | 4,379 |
PSUs | 716 |  |  | 292 |  |  | 1,083 |  |  | 477 |
Restricted stock | 1,024 |  |  | 843 |  |  | 1,850 |  |  | 1,522 |
Key employee awards | 253 |  |  | 322 |  |  | 514 |  |  | 530 |
Total | $ | 4,304 |  |  | $ | 3,796 |  |  | $ | 7,823 |  |  | $ | 6,908 |
Income tax benefit related to share-based compensation:
Options | $ | 1,840 |  |  | $ | 198 |  |  | $ | 5,161 |  |  | $ | 491 |
Restricted stock | 199 |  |  | 9 |  |  | 664 |  |  | 228 |
Total | $ | 2,039 |  |  | $ | 207 |  |  | $ | 5,825 |  |  | $ | 719 |

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- Definition Tabular disclosure of option exercise prices, by grouped ranges, including the upper and lower limits of the price range, the number of shares under option, weighted average exercise price and remaining contractual option terms. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480429/718-10-50-2 + Details
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- Definition Tabular disclosure of the significant assumptions used during the year to estimate the fair value of stock options, including, but not limited to: (a) expected term of share options and similar instruments, (b) expected volatility of the entity's shares, (c) expected dividends, (d) risk-free rate(s), and (e) discount for post-vesting restrictions. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 718 -SubTopic 10 -Subparagraph (f)(2) -Name Accounting Standards Codification -Paragraph 2 -Section 50 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480429/718-10-50-2 + Details
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