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Share-Based Compensation (Tables) | 12 Months Ended
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Dec. 31, 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 years ended December 31, 2023, 2022, and 2021 using a Black Scholes-Merton Model:
| 2023 |  | 2022 |  | 2021
Directors and SLT 1: |  |  |  |  |
Expected dividend yield | $ | 0.32 |  |  | $ | 0.25 |  |  | $ | 0.25 |
Expected volatility | 37.89 | % |  | 36.07 | % |  | 35.78 | %
Risk-free interest rate | 4.39 | % |  | 2.31 | % |  | 0.51 | %
Expected life (in years) | 4.0 |  | 4.0 |  | 4.0
Employees: |  |  |  |  |
Expected dividend yield | $ | 0.32 |  |  | $ | 0.25 |  |  | $ | 0.25 |
Expected volatility | 38.25 | % |  | 37.49 | % |  | 38.67 | %
Risk-free interest rate | 4.41 | % |  | 2.35 | % |  | 0.32 | %
Expected life (in years) | 3.0 |  | 3.0 |  | 3.0
1 Senior Leadership Team ("SLT") consists of officers and key members of management.
Summary of Stock Options Outstanding | The following is a summary of stock options vested and exercisable as of December 31, 2023:
|  |  |  | Weighted Average |  | Weighted |  |
Range of |  | Number |  | Remaining |  | Average |  |
Exercise |  | of |  | Contractual |  | Exercise |  | Intrinsic
Prices |  | Shares |  | Life |  | Price |  | Value
|  |  |  |  |  |  |  | (in thousands)
$13.95 - 27.58 |  | 1,340,919 |  |  | 4.23 |  | $ | 24.46 |  |  | $ | 66,278 |
$28.28 - 37.07 |  | 478,793 |  |  | 6.54 |  | 31.04 |  |  | 20,509 |
$37.09 - 69.62 |  | 204,713 |  |  | 7.30 |  | 48.00 |  |  | 5,291 |
Total |  | 2,024,425 |  |  | 5.09 |  | $ | 28.39 |  |  | $ | 92,078 |
Summary of Stock Option Activity | A summary of option activity under the plans is as follows:
|  |  | Weighted Average Exercise
Options | Shares |  | Price
Outstanding at December 31, 2022 | 4,560,520 |  |  | $ | 30.14 |
Granted | 329,173 |  |  | 61.14 |
Exercised | (1,142,640) |  |  | 29.10 |
Forfeited or Expired | (127,468) |  |  | 34.80 |
Outstanding at December 31, 2023 | 3,619,585 |  |  | $ | 33.09 |
Exercisable at December 31, 2023 | 2,024,425 |  |  | $ | 28.39 |
Summary of Performance Share Units Assumptions | 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 years ended December 31, 2023 and 2022, using a Monte Carlo Model:
| 2023 |  | 2022 |  | 2021
Expected dividend rate | $ | 0.32 |  |  | $ | 0.25 |  |  | $ | 0.25 |
Expected volatility | 32.71 | % |  | 37.60 | % |  | 39.10 | %
Risk-free interest rate | 4.66 | % |  | 2.00 | % |  | 0.28 | %
Expected life (in years) | 2.80 |  | 2.80 |  | 2.80
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 | 93,982 |  |  | $ | 36.62 |
Granted | 58,130 |  |  | 84.42 |
Vested | — |  |  | — |
Forfeited | — |  |  | — |
Unvested at December 31, 2023 1, 2 | 152,112 |  |  | $ | 54.88 |
1 Consists of 22,222 PSUs cliff vesting December 31, 2023, 71,760 PSUs cliff vesting December 31, 2025, and 58,130 PSUs cliff vesting December 31, 2026.
2 The 22,222 PSUs cliff vesting December 31, 2023 were approved by the Compensation Committee and issued to holders in February 2024.
Summary of Unvested Restricted Stock Awards | A summary of the unvested restricted stock awards is as follows:
|  |  | Weighted Average Grant Date
Restricted stock | Shares |  | Fair Value
Unvested at December 31, 2022 | 217,168 |  |  | $ | 33.34 |
Granted | 75,499 |  |  | 59.67 |
Vested | (99,309) |  |  | 32.76 |
Forfeited | (6,274) |  |  | 39.64 |
Unvested at December 31, 2023 | 187,084 |  |  | $ | 44.07 |
A summary of the unvested Key Employee Awards is as follows:
| Shares |  | Weighted Average Grant Date Fair Value
Unvested at December 31, 2022 | 39,899 |  |  | $ | 53.45 |
Granted | — |  |  | — |
Vested | — |  |  | — |
Forfeited | — |  |  | — |
Unvested at December 31, 2023 | 39,899 |  |  | $ | 53.45 |
Summary of Share-Based Compensation Expense | A summary of share-based compensation is as follows for the years ended December 31, 2023, 2022, and 2021:
| 2023 |  | 2022 |  | 2021
Grant date fair value of awards during the period: | (in thousands)
Options | $ | 5,259 |  |  | $ | 6,522 |  |  | $ | 7,010 |
PSUs | 4,907 |  |  | 2,275 |  |  | 1,622 |
Restricted stock | 4,505 |  |  | 3,671 |  |  | 2,517 |
Key employee awards | — |  |  | — |  |  | 1,572 |
Total | $ | 14,671 |  |  | $ | 12,468 |  |  | $ | 12,721 |
| 2023 |  | 2022 |  | 2021
Share-based compensation expense: | (in thousands)
Options | $ | 8,810 |  |  | $ | 8,585 |  |  | $ | 8,724 |
PSUs | 2,561 |  |  | 958 |  |  | 525 |
Restricted stock | 3,977 |  |  | 3,105 |  |  | 2,519 |
Key employee awards | 1,036 |  |  | 1,052 |  |  | 44 |
Total | $ | 16,384 |  |  | $ | 13,700 |  |  | $ | 11,812 |
| 2023 |  | 2022 |  | 2021
Income tax benefit related to share-based compensation: | (in thousands)
Options | $ | 8,138 |  |  | $ | 2,715 |  |  | $ | 4,571 |
Restricted stock | 720 |  |  | 241 |  |  | 837 |
Total | $ | 8,858 |  |  | $ | 2,956 |  |  | $ | 5,408 |

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