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Stock Plans | 12 Months Ended
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Dec. 31, 2022
Share-Based Payment Arrangement [Abstract] |
Stock Plans | Stock PlansThe 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 options are granted at market prices and expire after ten years. Stock options are exercisable beginning three years after the grant date. Restricted stock and restricted stock units are granted without payment to the Company and generally vest three years after the grant date. Restricted stock and restricted stock units are valued at the market value of the stock on the grant date. Performance stock units with a market condition are valued at an estimated fair value using a Monte Carlo simulation model. The final number of shares to be issued for performance stock units may range from zero to 240% of the target award based on achieving the specified performance targets over the performance period and further range based upon the achieved market metric over the performance period. In general, unvested stock options, restricted stock and performance stock units are forfeited if the participant’s employment with the Company terminates for any reason other than retirement, death or disability. We issue Treasury shares for stock option exercises and grants of restricted stock and performance stock. Please refer to Note 7—Capital Stock for further information regarding stock compensation share issuance. As of December 31, 2022, there were 598,813 and 76,890 shares, respectively, reserved for future grants under the management and non-employee directors’ equity incentive plans. Stock-based compensation expense was as follows:
(In thousands) | 2022 |  | 2021 |  | 2020
Restricted stock units | $ | 6,488 |  |  | $ | 5,797 |  |  | $ | 6,258 |
Stock options | 49 |  |  | 81 |  |  | 113 |
Performance stock units | 13,113 |  |  | 13,030 |  |  | 549 |
Total stock-compensation expense before income taxes | 19,650 |  |  | 18,908 |  |  | 6,920 |
Income tax benefit | 4,814 |  |  | 4,633 |  |  | 1,668 |
Total stock-compensation expense, net of income tax benefit | $ | 14,836 |  |  | $ | 14,275 |  |  | $ | 5,252 |
We did not capitalize any stock-based compensation expense, and all expense is included in Selling, general and administrative expense in the Consolidated Statements of Income. A summary of option activity follows:
| Shares |  | Weighted Average Exercise Price |  | Exercisable at Year-end
Outstanding January 1, 2020 | 559,656 |  |  | $ | 45.78 |  |  |
Exercised | (274,704) |  |  | 45.31 |  |  |
Forfeited | (954) |  |  | 42.00 |  |  |
Outstanding December 31, 2020 | 283,998 |  |  | 46.23 |  |  | 281,593 |
Exercised | (122,087) |  |  | 47.25 |  |  |
Forfeited | (210) |  |  | 43.75 |  |  |
Outstanding December 31, 2021 | 161,701 |  |  | 45.47 |  |  | 161,347 |
Exercised | (103,545) |  |  | 44.91 |  |  |
Outstanding December 31, 2022 | 58,156 |  |  | $ | 46.48 |  |  | 58,156 |
For various exercise price ranges, characteristics of outstanding and exercisable stock options at December 31, 2022 were as follows:
| Stock Options Outstanding
Range of Exercise Prices | Shares |  | Weighted-Average
Exercise Price |  | Remaining Life
$33.01 – $45.00 | 33,148 |  |  | $ | 44.50 |  |  | 2.41
$45.01 – $57.93 | 25,008 |  |  | 49.10 |  |  | 2.21
$33.01 – $57.93 | 58,156 |  |  | $ | 46.48 |  |  | 2.32
| Stock Options Exercisable
Range of Exercise Prices | Shares |  | Weighted-Average
Exercise Price |  | Remaining Life
$33.01 – $45.00 | 33,148 |  |  | $ | 44.50 |  |  | 2.41
$45.01 – $57.93 | 25,008 |  |  | 49.10 |  |  | 2.21
$33.01 – $57.93 | 58,156 |  |  | $ | 46.48 |  |  | 2.32
Cash received from the exercise of stock options was $4.7 million, $5.8 million and $12.4 million for the years ended December 31, 2022, 2021 and 2020, respectively. The tax benefit we realized from these exercises was $1.9 million, $4.3 million and $6.4 million for the years ended December 31, 2022, 2021 and 2020, respectively. Stock options become exercisable when they are vested. The aggregate intrinsic value of stock options exercisable and outstanding at December 31, 2022 was $5.7 million. 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 unit activity follows:
| Shares |  | Weighted Average Grant Date Fair Value
Unvested January 1, 2020 | 172,701 |  |  | $ | 90.38 |
Granted | 51,468 |  |  | 124.61 |
Vested | (70,399) |  |  | 81.58 |
Forfeited | (7,579) |  |  | 106.54 |
Unvested at December 31, 2020 | 146,191 |  |  | 105.83 |
Granted | 43,146 |  |  | 167.13 |
Vested | (65,225) |  |  | 95.43 |
Forfeited | (5,769) |  |  | 132.54 |
Unvested at December 31, 2021 | 118,343 |  |  | 132.62 |
Granted | 87,697 |  |  | 130.28 |
Vested | (51,369) |  |  | 113.96 |
Forfeited | (8,785) |  |  | 139.66 |
Unvested at December 31, 2022 | 145,886 |  |  | $ | 137.36 |
A summary of performance stock unit activity follows:
| Shares |  | Weighted Average Grant Date Fair Value
Unvested at January 1, 2020 | 238,035 |  |  | $ | 85.39 |
Granted | 67,479 |  |  | 127.48 |
Vested | (132,036) |  |  | 73.00 |
Performance adjustments | 33,499 |  |  | 72.36 |
Forfeited | (6,765) |  |  | 111.60 |
Unvested at December 31, 2020 | 200,212 |  |  | 104.69 |
Granted | 52,309 |  |  | 175.59 |
Vested | (64,543) |  |  | 85.41 |
Performance adjustments | 5,357 |  |  | 88.45 |
Unvested at December 31, 2021 | 193,335 |  |  | 129.86 |
Granted | 81,504 |  |  | 142.38 |
Vested | (55,447) |  |  | 101.38 |
Performance adjustments | (22,147) |  |  | 99.84 |
Forfeited | (18,485) |  |  | 147.66 |
Unvested at December 31, 2022 | 178,760 |  |  | $ | 146.28 |
The 2022 performance adjustments above relate primarily to 2019 performance unit awards that were below the performance targets when vested during 2022, including the final number of shares issued, which were 64.2% of the target award based on actual results during the three year performance period. During the years ended December 31, 2022, 2021 and 2020, the total intrinsic value of stock options exercised (the difference between the market price on the date of exercise and the option price paid to exercise the option) was $8.6 million, $13.0 million and $24.6 million, respectively. The fair values of restricted stock vested during the years ended December 31, 2022, 2021 and 2020 were $5.9 million, $6.2 million and $5.7 million, respectively. The fair value of performance stock units vested during the years ended December 31, 2022, 2021 and 2020 was $5.6 million, $5.5 million and $9.6 million, respectively. On December 31, 2022, there was $16.4 million of unrecognized stock-based compensation expense. The weighted average period over which this expense is expected to be recognized was approximately 1.8 years.

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