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Share-Based Compensation (Tables) | 9 Months Ended
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Sep. 30, 2024
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 nine months ended September 30, 2024 and 2023, using a Black Scholes-Merton Model:
| Nine months ended
| September 30, 2024 |  | September 30, 2023
Senior Leadership 1: |  |  |
Expected (annual) dividend rate | $0.32 |  | $0.32
Expected volatility | 37.90% |  | 37.89%
Risk-free interest rate | 4.14% |  | 4.39%
Expected life (in years) | 4.0 |  | 4.0
Employees: |  |  |
Expected (annual) dividend rate | $0.32 |  | $0.32
Expected volatility | 33.56% |  | 38.30%
Risk-free interest rate | 4.27% |  | 4.41%
Expected life (in years) | 3.0 |  | 3.0
1 Senior Leadership 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 nine months ended September 30, 2024 and 2023, using a Monte Carlo Model:
| Nine months ended
| September 30, 2024 |  | September 30, 2023
Expected (annual) dividend rate | $0.32 |  | $0.32
Expected volatility | 33.99% |  | 32.71%
Risk-free interest rate | 4.31% |  | 4.66%
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 September 30, 2024:
Range of Exercise Prices |  | Number of Shares |  | Weighted Average Remaining Contractual Life (in years) |  | Weighted Average Exercise Price |  | Intrinsic Value (in thousands)
$ | 13.95 |  | - | $ | 27.58 |  |  | 1,267,078 |  |  | 3.75 |  | $ | 25.27 |  |  | $ | 104,618 |
$ | 28.28 |  | - | $ | 37.07 |  |  | 534,194 |  |  | 6.01 |  | 31.63 |  |  | 40,709 |
$ | 37.09 |  | - | $ | 107.85 |  |  | 332,194 |  |  | 6.97 |  | 50.80 |  |  | 18,947 |
|  | Total |  | 2,133,466 |  |  | 4.82 |  | $ | 30.84 |  |  | $ | 164,274 |
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, 2023 | 3,619,585 |  |  | $ | 33.09 |
Granted | 414,016 |  |  | 79.77 |
Exercised | (820,177) |  |  | 31.26 |
Forfeited or Expired | (44,816) |  |  | 52.50 |
Outstanding at September 30, 2024 | 3,168,608 |  |  | $ | 39.34 |
Exercisable at September 30, 2024 | 2,133,466 |  |  | $ | 30.84 |
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, 2023 | 187,084 |  |  | $ | 44.07 |
Granted | 65,187 |  |  | 78.26 |
Vested | (96,672) |  |  | 40.87 |
Forfeited | (5,560) |  |  | 56.41 |
Unvested at September 30, 2024 | 150,039 |  |  | $ | 60.53 |
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, 2023 | 152,112 |  |  | $ | 54.88 |
Granted | 47,965 |  |  | 106.24 |
Additional payout 1 | 2,059 |  |  | 58.53 |
Vested | (21,919) |  |  | 58.53 |
Forfeited | (5,957) |  |  | 69.81 |
Unvested at September 30, 2024 2 | 174,260 |  |  | $ | 68.09 |
1 The additional number of PSUs earned based on a 110% achievement at December 31, 2023 for awards vesting in 2024.
2 Consists of 70,852 PSUs cliff vesting December 31, 2024, 56,528 PSUs cliff vesting December 31, 2025, and 46,880 PSUs cliff vesting December 31, 2026.
Summary of Share-Based Compensation Expense | A summary of share-based compensation is as follows:
| Three Months Ended |  | Nine Months Ended
| September 30, 2024 |  | September 30, 2023 |  | September 30, 2024 |  | September 30, 2023
Grant date fair value of awards during the period: | (in thousands)
Options | $ | 222 |  |  | $ | 106 |  |  | $ | 9,342 |  |  | $ | 5,224 |
PSUs | 39 |  |  | — |  |  | 5,096 |  |  | 4,907 |
Restricted stock | 73 |  |  | 246 |  |  | 5,102 |  |  | 4,396 |
Total | $ | 334 |  |  | $ | 352 |  |  | $ | 19,540 |  |  | $ | 14,527 |
Share-based compensation expense: |  |  |  |  |  |  |
Options | $ | 1,960 |  |  | $ | 2,228 |  |  | $ | 6,213 |  |  | $ | 6,604 |
PSUs | 1,238 |  |  | 737 |  |  | 3,089 |  |  | 1,820 |
Restricted stock | 1,165 |  |  | 1,053 |  |  | 3,512 |  |  | 2,903 |
Key Employee Awards | — |  |  | 261 |  |  | — |  |  | 775 |
Total | $ | 4,363 |  |  | $ | 4,279 |  |  | $ | 12,814 |  |  | $ | 12,102 |
Income tax benefit (deficiency) related to share-based compensation:
Options | $ | 5,066 |  |  | $ | 478 |  |  | $ | 10,294 |  |  | $ | 5,639 |
PSUs | — |  |  | — |  |  | 169 |  |  | — |
Restricted stock | 32 |  |  | 16 |  |  | 1,003 |  |  | 680 |
Key Employee Awards | — |  |  | — |  |  | 282 |  |  | — |
Total | $ | 5,098 |  |  | $ | 494 |  |  | $ | 11,748 |  |  | $ | 6,319 |

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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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