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Stock-Based Compensation | 9 Months Ended
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Sep. 30, 2023
Share-Based Payment Arrangement [Abstract] |
Stock-Based Compensation | Stock-Based Compensation We grant stock-based compensation awards, including restricted stock units, phantom stock, and unrestricted stock units, under the Second Amended and Restated 2010 Stock Incentive Plan (Stock Incentive Plan). Prior to December 31, 2020, stock options were also granted as part of the stock-based compensation awards. In the Stock Incentive Plan, we have 12,123,538 shares of common stock authorized for issuance subject to stock splits, dividends, and other similar events, and at September 30, 2023, 3,396,555 shares were available for grant. We issue new shares of common stock upon the exercise of stock options or when vesting conditions on restricted stock units are fully satisfied. These shares are subject to a fungible share provision such that the authorized share available for grant is reduced by (i) one share for every one share subject to a stock option or share appreciation right granted under the Plan and (ii) 1.7 shares for every one share of common stock that was subject to an award other than an option or share appreciation right. We also award phantom stock units, which are settled in cash upon vesting and accounted for as liability-based awards, with no impact to the shares available for grant. In addition, we maintain the Employee Stock Purchase Plan (ESPP), for which 534,418 shares of common stock were available for future issuance at September 30, 2023. In May 2023, the shareholders authorized, via a proxy approval, the reallocation of 500,000 reserved shares from the shares available for grant in the Stock Incentive Plan to the ESPP. ESPP activity and stock-based grants other than stock options and restricted stock units were not significant for the three and nine months ended September 30, 2023 and 2022. Stock-Based Compensation Expense Total stock-based compensation expense and the related tax benefit were as follows:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
In thousands | 2023 |  | 2022 |  | 2023 |  | 2022
Stock options | $ | 18 |  |  | $ | 236 |  |  | $ | 98 |  |  | $ | 798 |
Restricted stock units | 6,581 |  |  | 4,430 |  |  | 19,680 |  |  | 15,883 |
Unrestricted stock awards | 238 |  |  | 218 |  |  | 753 |  |  | 735 |
Phantom stock units | 1,190 |  |  | (176) |  |  | 3,114 |  |  | 596 |
Total stock-based compensation | $ | 8,027 |  |  | $ | 4,708 |  |  | $ | 23,645 |  |  | $ | 18,012 |
Related tax benefit | $ | 1,686 |  |  | $ | 1,195 |  |  | $ | 5,059 |  |  | $ | 4,264 |
Stock Options A summary of our stock option activity is as follows:
| Shares |  | Weighted Average Exercise Price per Share |  | Weighted Average Remaining Contractual Life |  | Aggregate Intrinsic Value |  | Weighted Average Grant Date Fair Value
| In thousands |  |  |  | Years |  | In thousands |  |
Outstanding, January 1, 2022 | 393 |  |  | $ | 61.18 |  |  | 5.9 |  | $ | 4,737 |  |  |
Granted | — |  |  | — |  |  |  |  |  |  | $ | — |
Exercised | — |  |  | — |  |  |  |  | — |  |  |
Forfeited | (2) |  |  | 87.27 |  |  |  |  |  |  |
Canceled | (8) |  |  | 78.76 |  |  |  |  |  |  |
Outstanding, September 30, 2022 | 383 |  |  | $ | 60.69 |  |  | 5.1 |  | $ | 729 |  |  |
Outstanding, January 1, 2023 | 381 |  |  | $ | 60.63 |  |  | 4.8 |  | $ | 1,892 |  |  |
Granted | — |  |  | — |  |  |  |  |  |  | $ | — |
Exercised | (6) |  |  | 56.83 |  |  |  |  | 88 |  |  |
Forfeited | — |  |  | — |  |  |  |  |  |  |
Canceled | — |  |  | — |  |  |  |  |  |  |
Outstanding, September 30, 2023 | 375 |  |  | $ | 60.69 |  |  | 4.1 |  | $ | 3,316 |  |  |
Exercisable, September 30, 2023 | 375 |  |  | $ | 60.64 |  |  | 4.1 |  | $ | 3,316 |  |  |
At September 30, 2023, all stock-based compensation expense related to nonvested stock options has been recognized. Restricted Stock Units The following table summarizes restricted stock unit activity:
In thousands, except fair value | Number of Restricted Stock Units |  | Weighted Average Grant Date Fair Value |  | Aggregate Intrinsic Value
Outstanding, January 1, 2022 | 430 |  |  |  |  |
Granted | 371 |  |  | $ | 53.32 |  |  |
Released (1) | (220) |  |  |  |  | $ | 11,441 |
Forfeited | (62) |  |  |  |  |
Outstanding, September 30, 2022 | 519 |  |  |  |  |
Outstanding, January 1, 2023 | 528 |  |  | $ | 66.39 |  |  |
Granted | 459 |  |  | 56.62 |  |  |
Released (1) | (235) |  |  | 71.83 |  |  | $ | 739 |
Forfeited | (25) |  |  | 62.32 |  |  |
Outstanding, September 30, 2023 | 727 |  |  | 58.81 |  |  |
Vested but not released, September 30, 2023 | 15 |  |  |  |  | $ | 887 |
(1) Shares released is presented as gross shares and does not reflect shares withheld by us for employee payroll tax obligations. At September 30, 2023, total unrecognized compensation expense on restricted stock units was $37.5 million, which is expected to be recognized over a weighted average period of approximately 1.8 years. The weighted average assumptions used to estimate the fair value of performance-based restricted stock units granted with a service and market condition and the resulting weighted average fair value are as follows:
|  |  | Nine Months Ended September 30,
|  |  |  |  | 2023 |  | 2022
Expected volatility |  |  |  |  | 50.0 | % |  | 55.7 | %
Risk-free interest rate |  |  |  |  | 4.6 | % |  | 1.7 | %
Expected term (years) |  |  |  |  | 2.2 |  | 2.9
Weighted average fair value |  |  |  |  | $ | 59.52 |  |  | $ | 57.88 |

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