Share-Based Compensation

12 Months Ended

Dec. 31, 2024

Share-Based Payment Arrangement [Abstract]

Share-Based Incentive Plans

The Company has established various plans under which it is authorized to grant restricted stock, restricted stock units,

stock options, and stock appreciation rights. The Company may also grant cash awards that can be notionally invested in one or

more specified measurement funds, including the Company’s common stock. Awards granted under the Company’s share-

based incentive plans typically participate in any dividends declared, but such amounts are deferred until delivery of the shares

and are forfeitable if the requisite service is not satisfied. Dividends may accrue in cash or may be reinvested in the Company’s

common stock.

Share-Based Compensation

The following table presents share-based compensation expense:


	Share-Based Compensation Expense	Tax Benefit
2022 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	$62.4	$7.6
2023 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	59.4	7.4
2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	52.0	6.3

The excess tax benefit recognized from share-based incentive plans was $1.8 million, $4.4 million, and $10.3 million for

the years ended December 31, 2022, 2023, and 2024, respectively.

As of December 31, 2023, the Company had unrecognized share-based compensation expense of $54.4 million. As of

December 31, 2024, the Company had unrecognized share-based compensation of $38.1 million, which will be recognized over

a weighted average period of approximately two years (assuming no forfeitures).

Restricted Stock

The following table summarizes transactions in the Company’s restricted stock units:


	Restricted Stock Units	Weighted Average Grant Date Value Per Unit
Unvested units–December 31, 2023 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	0.9	$138.51
Units granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	0.2	159.32
Units vested . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	(0.3)	129.72
Units forfeited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	(0.0)	143.25
Performance condition changes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	0.0	154.72
Unvested units–December 31, 2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	0.8	$147.46

The Company granted restricted stock units with fair values of $47.1 million, $49.3 million, and $31.3 million for the years

ended December 31, 2022, 2023, and 2024, respectively. These restricted stock units were valued based on the closing price of

the Company’s common stock on the grant date and the number of shares expected to vest. Restricted stock units containing

vesting conditions generally require service over a period of three years to four years and may also require the satisfaction of

certain performance conditions. For awards with performance conditions, the number of restricted stock units expected to vest

may change over time depending upon the performance level expected to be achieved.

The total fair value of shares vested was $54.6 million, $86.2 million, and $50.5 million for the years ended December 31,

2022, 2023, and 2024, respectively. As of December 31, 2024, the Company had 2.2 million shares available for grant under its

plans.

Stock Options

The following table summarizes transactions in the Company’s stock options:


	Stock Options	Weighted Average Exercise Price Per Option	Weighted Average Remaining Contractual Life (Years)
Unexercised options outstanding–December 31, 2023 . . . . . . . . . . . . . . . . . . .	3.2	$76.74
Options granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	—	—
Options exercised . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	(1.5)	74.78
Options forfeited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	—	—
Options expired . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	(0.0)	174.26
Performance condition changes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	0.0	129.17
Unexercised options outstanding–December 31, 2024 . . . . . . . . . . . . . . . . . . .	1.7	$78.45	1.8
Exercisable at December 31, 2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	1.3	$76.12	1.6

The Company granted stock options with fair values of $1.8 million for the year ended December 31, 2022. The Company

did not grant any stock options for the years ended December 31, 2023 and 2024. Stock options generally vest over a period of

three years to five years and expire seven years after the grant date. All stock options have been granted with exercise prices

equal to the closing price of the Company’s common stock on the grant date. Substantially all of the Company’s outstanding

stock options contain both service and performance conditions. For awards with performance conditions, the number of stock

options expected to vest may change over time depending upon the performance level expected to be achieved.

The Company generally uses treasury stock to settle stock option exercises. The total intrinsic value of stock options

exercised for the years ended December 31, 2022, 2023, and 2024 was $1.2 million, $0.2 million, and $150.7 million,

respectively. The cash received for stock options exercised was $2.6 million, zero, and $0.3 million for the years ended

December 31, 2022, 2023, and 2024, respectively. As of December 31, 2024, the intrinsic value of exercisable stock options

outstanding was $138.6 million, and 1.1 million options were available for grant under the Company’s option plans.

The weighted average fair value of stock options granted was $47.84 per option for the year ended December 31, 2022.

The Company uses the Black-Scholes option pricing model to determine the fair value of options. The weighted average grant

date assumptions used to estimate the fair value of stock options granted were as follows:


		For the Year Ended December 31,
		2022
Dividend yield . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .		0.0%
Expected volatility(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .		36.8%
Risk-free interest rate(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .		1.7%
Expected life of stock options (in years)(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .		5.7
Forfeiture rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .		0.0%

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(1)Expected volatility is based on historical and implied volatility.

(2)Risk-free interest rate is based on the U.S. Treasury yield curve in effect at the date of grant.

(3)Expected life of options (in years) is based on the Company’s historical and expected exercise behavior.