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Stock Plans | 9 Months Ended
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Sep. 30, 2022
Share-based Payment Arrangement [Abstract] |
Stock Plans | Stock Plans The 2016 Management Equity Incentive Plan provides for various forms of stock-based compensation for eligible employees through May 2026 including stock options, restricted stock awards, restricted stock units and performance stock units. The 2017 Non-Employee Directors’ Equity Incentive Plan provides for grants of stock options and restricted stock to non-employee directors through May 2027. Stock compensation expense is as follows:
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
(In thousands) |  | 2022 |  | 2021 |  | 2022 |  | 2021
Stock compensation expense |  | $ | 2,967 |  |  | $ | 2,867 |  |  | $ | 11,325 |  |  | $ | 13,562 |
Income tax benefit |  | 727 |  |  | 691 |  |  | 2,775 |  |  | 3,269 |
Stock compensation expense, net of tax |  | $ | 2,240 |  |  | $ | 2,176 |  |  | $ | 8,550 |  |  | $ | 10,293 |
A summary of stock option activity for the nine months ended September 30, 2022, is as follows:
|  | Shares |  | Weighted Average Exercise Price
Outstanding at January 1, 2022 |  | 161,701 |  |  | $ | 45.47 |
Exercised |  | (92,833) |  |  | 44.84 |
Outstanding at September 30, 2022 |  | 68,868 |  |  | 46.32 |
Exercisable at September 30, 2022 |  | 68,861 |  |  | $ | 46.32 |
Restricted stock awards and restricted stock units are valued at the market value of the stock on the grant date. A summary of restricted stock activity for the nine months ended September 30, 2022, is as follows:
|  | Shares |  | Weighted Average Grant Date Fair Value
Unvested at January 1, 2022 |  | 118,343 |  |  | $ | 132.62 |
Granted |  | 78,023 |  |  | 130.77 |
Vested |  | (49,661) |  |  | 113.52 |
Forfeited |  | (8,041) |  |  | 138.63 |
Unvested at September 30, 2022 |  | 138,664 |  |  | $ | 138.07 |
Performance stock units that have a market condition modifier are valued at an estimated fair value using a Monte Carlo model. The final number of shares to be issued for performance stock units granted in 2022 may range from 0% to 200% of the target award based on achieving the specified performance targets over the performance period plus an additional modifier based on total shareholder return ("TSR") over the performance period. The following weighted average assumptions were used in estimating the fair value of the performance stock units granted in the first quarter of 2022.
Fair value per unit | $143.60 |  |  |
Risk-free interest rate | 1.72% |  |  |
Expected dividend yield | 1.14% |  |  |
Expected volatility | 34.4% |  |  |
MSA stock beta | 0.890 |  |  |
The risk-free interest rate is based on the U.S. Treasury Constant Maturity rates as of the grant date converted into an implied spot rate yield curve. Expected dividend yield is based on the most recent annualized dividend divided by the one year average closing share price. Expected volatility is based on the three year historical volatility preceding the grant date using daily stock prices. Expected life is based on historical stock option exercise data. A summary of performance stock unit activity for the nine months ended September 30, 2022, is as follows:
|  | Shares |  | Weighted Average Grant Date Fair Value
Unvested at January 1, 2022 |  | 193,335 |  |  | $ | 129.86 |
Granted |  | 81,504 |  |  | 142.38 |
Performance adjustments |  | (22,147) |  |  | 99.84 |
Vested |  | (55,447) |  |  | 101.38 |
Forfeited |  | (18,180) |  |  | 147.81 |
Unvested at September 30, 2022 |  | 179,065 |  |  | $ | 146.27 |
The performance adjustments above relate primarily to the final number of shares issued for the 2019 performance unit awards which vested in the first quarter of 2022 at 64.2% of the target award based on both cumulative performance against the EBITDA margin and revenue growth targets and MSA's TSR during the three-year performance period.

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- Definition The entire disclosure for share-based payment arrangement. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 + Details
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