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Share-Based Compensation and Capital Stock | 12 Months Ended
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Dec. 31, 2022
Share-Based Payment Arrangement [Abstract] |
Share-Based Compensation and Capital Stock | Share-Based Compensation and Capital Stock Share-Based Compensation The Company recognizes compensation cost related to share-based payment transactions in the financial statements based on the fair value of the equity or liability instruments issued. Compensation expense related to the fair value of share-based awards is recognized over the requisite service period. Over the life of the grant, the estimate of share-based compensation expense for awards with performance and/or service requirements is adjusted so that compensation cost i s rec ognized only for awards that ultimately vest; for the grants with market conditions, the fair value of the award is determined at grant date and expensed over the life of the grant. The Company has stock compensation plans pursuant to which it is authorized to grant stock-based awards of which 1.6 million shares of the Company's common stock remain available for grant as of December 31, 2022. The Company’s policy allows the issuance of new or treasury shares to satisfy stock-based awards. Restricted stock, stock options, stock appreciation rights and performance share awards may be granted to officers, key employees and non-employee directors with contractual terms set by the Compensation and Management Development Committee of the Board of Directors. Stock Options The Company granted approximately 0.2 million, 0.3 million and 0.2 million options to certain employees of the Company at a fair value of approximately $7.4 million, $7.9 million and $2.7 million during the years ended December 31, 2022, 2021 and 2020, respectively. The stock options granted by the Company had an exercise price equal to the market price of the Company’s common stock on the date of grant. The fair value of the options granted was estimated on the grant date using the Black-Scholes option-pricing model with the following weighted average assumptions:
| 2022 |  | 2021 |  | 2020
Risk-free interest rate | 2.01 | % |  | 0.94 | % |  | 0.99 | %
Expected volatility | 29.46 | % |  | 29.23 | % |  | 20.88 | %
Expected life of stock option | 5.9 years |  | 5.9 years |  | 5.9 years
Dividend yield | 0.66 | % |  | 0.82 | % |  | 0.99 | %
Requisite service period | 4 years |  | 4 years |  | 4 years
Contractual life | 10 years |  | 10 years |  | 10 years
Weighted average fair value of options granted (per option) | $ | 42.66 |  |  | $ | 28.00 |  |  | $ | 17.25 |
The expected life of the options and volatility are based on the historical data which is believed to be indicative of future exercise patterns and volatility. Historical volatility is calculated based on a period that corresponds to the expected life of the stock option. The dividend yield and the risk-free rate of return are calculated on the grant date based on the then current dividend rate and the risk-free rate for the period corresponding to the expected life of the stock option. Compensation expense related to the fair value of these awards is recognized straight-line over the requisite service period based on those awards that ultimately vest. The aggregate intrinsic value of stock options outstanding and exercisable as of December 31, 2022 was $23.1 million and $18.8 million, respectively. The total intrinsic value of options exercised during the years ended December 31, 2022, 2021 and 2020 was $5.4 million, $10.6 million and $8.9 million, respectively. The Company received $3.8 million, $11.1 million and $10.2 million in proceeds from the exercise of 0.1 million, 0.2 million and 0.2 million employee stock options during the years ended December 31, 2022, 2021 and 2020, respectively. The following table summarizes information about stock options outstanding as of December 31, 2022:
|  | Options Outstanding |  | Options Exercisable
Range of Exercise Prices |  | Number Outstanding at December 31, 2022 |  | Weighted Average Remaining Contractual Life (Years) |  | Weighted Average Exercise Price |  | Number Exercisable at December 31, 2022 |  | Weighted Average Exercise Price
$45.59 to $55.00 |  | 105,172 |  |  | 0.16 |  | $ | 51.49 |  |  | 105,172 |  |  | $ | 51.49 |
$55.01 to $65.00 |  | 78,855 |  |  | 1.22 |  | 60.69 |  |  | 78,855 |  |  | 60.69 |
$65.01 to $85.00 |  | 230,110 |  |  | 2.75 |  | 81.31 |  |  | 194,648 |  |  | 81.34 |
$85.01 to $91.28 |  | 153,692 |  |  | 7.17 |  | 91.28 |  |  | 76,838 |  |  | 91.28 |
$91.29 to $104.87 |  | 273,567 |  |  | 8.16 |  | 104.87 |  |  | 68,343 |  |  | 104.87 |
$104.88 to $117.98 |  | 16,667 |  |  | 9.63 |  | 117.98 |  |  | — |  |  | — |
$117.99 to $146.68 |  | 152,584 |  |  | 9.16 |  | 146.68 |  |  | — |  |  | — |
|  | 1,010,647 |  |  | 5.58 |  | $ | 94.97 |  |  | 523,856 |  |  | $ | 76.77 |
Restricted Stock The following table is a summary of activity related to restricted stock grants:
| For the Year Ended December 31,
| 2022 |  | 2021 |  | 2020
Restricted shares granted | 273,777 |  |  | 61,009 |  |  | 158,133 |
Weighted average grant date fair value per share | $ | 143.76 |  |  | $ | 111.25 |  |  | $ | 90.18 |
Aggregate grant date fair value (in thousands) | $ | 39,357 |  |  | $ | 6,787 |  |  | $ | 14,260 |
Restricted shares forfeited | 14,443 |  |  | 19,209 |  |  | 36,860 |
Vesting service period of shares granted | 9 - 60 months |  | 9 - 48 months |  | 12 - 48 months
Fair value of shares vested (in thousands) | $ | 13,784 |  |  | $ | 11,927 |  |  | $ | 9,000 |
Compensation expense related to the fair value of these awards is recognized straight-line over the requisite service period based on those restricted stock grants that ultimately vest. The fair value of grants is measured by the market price of the Company’s common stock on the date of grant. Restricted stock awards generally vest ratably over the service period beginning with the first anniversary of the grant date. Awards granted to retirement eligible non-employee directors are recognized over the shorter of the requisite service period or the length of time until retirement since the terms of the grant provide that awards will vest upon retirement. Performance Vested Restricted Stock Units The Company has granted performance vested restricted stock units (“PVRSU”) to certain employees. The Company grants three types of PVRSU awards: i) PVRSUs with performance conditions based on internal performance metrics, ii) PVRSUs with market conditions based on the Company's total shareholder return ("TSR") relative to a predetermined peer group, and iii) PVRSUs with both performance and market conditions. The vesting of PVRSU awards is contingent upon the Company achieving internal performance and/or TSR targets over a specified period and the employees' continued employment for a service period. These performance and market conditions affect the number of shares that will ultimately vest. During the year ended December 31, 2022, the Company granted PVRSUs with market conditions, PVRSUs with performance conditions and PVRSUs with performance and market conditions with requisite service periods between 9 months and 60 months with award vesting ranges generally between 0% and 300% of the initial units granted. The fair value of PVRSUs with only internal performance metrics is measured by the market price of the Company's common stock on the date of award grant. Compensation expense is recognized ratably over the requisite service period based on the Company's estimate of the achievement of the performance conditions. Management monitors current results and forecasts of the relevant internal performance metrics and, as necessary, adjusts the performance-based leveraging of unvested PVRSUs. The fair value of PVRSUs with market conditions is estimated using a Monte Carlo simulation method as of the date of award grant. Compensation expense is recognized ratably over the requisite service period, regardless of whether the market conditions are achieved and the awards ultimately vest. The fair value of PVRSUs with both performance and market conditions is estimated using a Monte Carlo simulation as of the date of award grant. Compensation is recognized ratable over the requisite service period based on the Company's estimate of the achievement of the performance conditions, with subsequent adjustments made for performance-based leveraging of unvested PVRSUs, as necessary. The Company has currently estimated that between 54% and 266.7% of the various award targets will be achieved. The following table is a summary of activity related to PVRSU grants:
| For the Years Ended December 31,
| 2022 |  | 2021 |  | 2020
PVRSUs granted at target | 111,585 |  |  | 98,544 |  |  | 170,471 |
Weighted average grant date fair value per share | $ | 181.91 |  |  | $ | 108.75 |  |  | $ | 134.26 |
Aggregate grant date fair value (in thousands) | $ | 20,298 |  |  | $ | 10,716 |  |  | $ | 22,888 |
PVRSUs forfeited & expired | 83,563 |  |  | 78,500 |  |  | 33,080 |
Requisite service period | 9 - 60 months |  | 9 to 60 months |  | 31 to 36 months
During the year ended December 31, 2022, no PVRSUs vested. During the years ended December 31, 2021 and 2020, PVRSUs totaling 3,986 and 176,471 vested at a fair value of $0.3 million and $17.5 million, respectively. During the years ended December 31, 2021 and 2020, an additional 920 and 30,116 units, respectively, were awarded because the Company's performance exceeded the conditions provided in the awards. As a result of the Company's operating results not achieving certain performance conditions contained in the PVRSU awards, the number of PVRSUs that expired was 78,370 shares for the year ended December 31, 2022, 72,944 shares for the year ended December 31, 2021, and 16,117 shares for the year ended December 31, 2020. A summary of stock-based award activity as of December 31, 2022, 2021 and 2020 and the changes during those years are presented below:
| 2022
| Stock Options |  | Restricted Stock |  | Performance Vested Restricted Stock Units
| Options |  | Weighted Average Exercise Price |  | Weighted Average Remaining Contractual Life |  | Shares |  | Weighted Average Grant Date Fair Value |  | Shares |  | Weighted Average Grant Date Fair Value
Outstanding as of January 1, 2022 | 910,944 |  |  | $ | 83.14 |  |  |  |  | 236,599 |  |  | $ | 92.60 |  |  | 412,642 |  |  | $ | 114.70 |
Granted | 172,441 |  |  | 143.91 |  |  |  |  | 273,777 |  |  | 143.76 |  |  | 111,585 |  |  | 181.91 |
Performance-based leveraging* | — |  |  | — |  |  |  |  | — |  |  | — |  |  | (3,484) |  |  | 121.34 |
Exercised/vested | (66,192) |  |  | 57.55 |  |  |  |  | (96,834) |  |  | 87.34 |  |  | — |  |  | — |
Expired | (986) |  |  | 51.49 |  |  |  |  | — |  |  | — |  |  | (78,370) |  |  | 81.15 |
Forfeited | (5,560) |  |  | 128.86 |  |  |  |  | (14,443) |  |  | 106.35 |  |  | (5,193) |  |  | 132.06 |
Outstanding as of December 31, 2022 | 1,010,647 |  |  | $ | 94.97 |  |  | 5.6 years |  | 399,099 |  |  | $ | 128.47 |  |  | 437,180 |  |  | $ | 140.05 |
Options exercisable as of December 31, 2022 | 523,856 |  |  | $ | 76.77 |  |  | 3.3 years |  |  |  |  |  |  |  |
* PVRSU units outstanding have been adjusted by 3,484, net units during the year ended December 31, 2022, due to a decrease in outstanding PVRSU units due to the Company partially meeting the targeted performance conditions offset by an increase in outstanding PVRSU units due to the Company exceeding the targeted performance conditions in PVRSU's granted in prior periods.
| 2021
| Stock Options |  | Restricted Stock |  | Performance Vested Restricted Stock Units
| Options |  | Weighted Average Exercise Price |  | Weighted Average Remaining Contractual Life |  | Shares |  | Weighted Average Grant Date Fair Value |  | Shares |  | Weighted Average Grant Date Fair Value
Outstanding as of January 1, 2021 | 819,610 |  |  | $ | 70.48 |  |  |  |  | 304,439 |  |  | $ | 84.48 |  |  | 321,752 |  |  | $ | 109.25 |
Granted | 280,811 |  |  | 104.87 |  |  |  |  | 61,009 |  |  | 111.25 |  |  | 98,544 |  |  | 108.75 |
Performance-based leveraging* | — |  |  | — |  |  |  |  | — |  |  | — |  |  | 74,832 |  |  | 107.51 |
Exercised/vested | (185,437) |  |  | 59.61 |  |  |  |  | (109,640) |  |  | 80.83 |  |  | (3,986) |  |  | 81.55 |
Expired | — |  |  | — |  |  |  |  | — |  |  | — |  |  | (72,944) |  |  | 81.55 |
Forfeited | (4,040) |  |  | 104.87 |  |  |  |  | (19,209) |  |  | 90.23 |  |  | (5,556) |  |  | 55.76 |
Outstanding as of December 31, 2021 | 910,944 |  |  | $ | 83.14 |  |  | 5.5 years |  | 236,599 |  |  | $ | 92.60 |  |  | 412,642 |  |  | $ | 114.70 |
Options exercisable as of December 31, 2021 | 421,592 |  |  | $ | 67.09 |  |  | 2.8 years |  |  |  |  |  |  |  |
* PVRSU units outstanding have been increased by 74,832 units during the year ended December 31, 2021, due to the Company exceeding the targeted performance conditions contained in PVRSU's granted in prior periods.
| 2020
| Stock Options |  | Restricted Stock |  | Performance Vested Restricted Stock Units
| Options |  | Weighted Average Exercise Price |  | Weighted Average Remaining Contractual Life |  | Shares |  | Weighted Average Grant Date Fair Value |  | Shares |  | Weighted Average Grant Date Fair Value
Outstanding as of January 1, 2020 | 873,895 |  |  | $ | 61.69 |  |  |  |  | 312,097 |  |  | $ | 75.23 |  |  | 330,716 |  |  | $ | 70.03 |
Granted | 158,620 |  |  | 91.28 |  |  |  |  | 158,133 |  |  | 90.18 |  |  | 170,471 |  |  | 134.26 |
Performance-based leveraging* | — |  |  | — |  |  |  |  | — |  |  | — |  |  | 30,116 |  |  | 60.68 |
Exercised/vested | (209,209) |  |  | 49.17 |  |  |  |  | (128,931) |  |  | 69.80 |  |  | (176,471) |  |  | 58.68 |
Expired | — |  |  | — |  |  |  |  | — |  |  | — |  |  | (16,117) |  |  | 60.50 |
Forfeited | (3,696) |  |  | 91.28 |  |  |  |  | (36,860) |  |  | 81.98 |  |  | (16,963) |  |  | 82.25 |
Outstanding as of December 31, 2020 | 819,610 |  |  | $ | 70.48 |  |  | 4.2 years |  | 304,439 |  |  | $ | 84.48 |  |  | 321,752 |  |  | $ | 109.25 |
Options exercisable as of December 31, 2020 | 480,255 |  |  | $ | 60.70 |  |  | 2.5 years |  |  |  |  |  |  |  |
* PVRSU units outstanding have been increased by 30,116 units during the year ended December 31, 2020, due to the Company exceeding the targeted performance conditions contained in PVRSU's granted in prior periods. The components of the Company’s pretax stock-based compensation expense and associated income tax benefits are as follows:
| For the Year Ended December 31,
(in thousands) | 2022 |  | 2021 |  | 2020
Stock options | $ | 4,674 |  |  | $ | 3,396 |  |  | $ | 1,975 |
Restricted stock | 14,349 |  |  | 9,281 |  |  | 8,731 |
Performance vested restricted stock units | 21,436 |  |  | 10,703 |  |  | (3,466) |
Total share-based compensation expense | $ | 40,459 |  |  | $ | 23,380 |  |  | $ | 7,241 |
The total unrecognized compensation costs related to stock-based awards that have not yet vested and the related weighted average amortization period over which the costs are to be recognized as of December 31, 2022 are as follows:
(in thousands) | Unrecognized Compensation Expense on Unvested Awards |  | Weighted Average Remaining Amortization Period
Stock options | $ | 10,528 |  |  | 3.0 years
Restricted stock | 37,634 |  |  | 3.6 years
Performance vested restricted stock units | 28,545 |  |  | 2.5 years
Total | $ | 76,707 |  |  |
Dividends On February 28, 2020, the Company’s Board of Directors declared a quarterly cash dividend of $0.225 per share of common stock for $12.5 million. The dividend was payable on April 16, 2020 to shareholders of record on April 2, 2020. Subsequent to the payment of the dividend, in light of uncertainty resulting from the COVID-19 pandemic, the Company’s Board of Directors suspended future, undeclared dividends. During the fourth quarter of 2021, the Company's Board of Directors announced a 6% increase to the quarterly dividend rate to $0.2375 per share from $0.225 per share, beginning with the dividend payable in the first quarter of 2022. During the year ended December 31, 2022, the Company's quarterly dividend rate was $0.2375 per share. Annual dividends declared during the year ended December 31, 2022 were $0.95 per share or $51.7 million. During the year ended December 31, 2021, the Company's quarterly dividend rate was $0.225 per share for the second and third quarter and was $0.2375 per share in the fourth quarter of 2021. Annual dividends declared during the year ended December 31, 2021 were $0.688 per share or $38.2 million. During the year ended December 31, 2020, the Company's quarterly dividend rate was $0.225 per share. Annual dividends declared during the year ended December 31, 2020 were $0.225 per share or $12.5 million. The Company may not declare or make any payment if under the Restated Credit agreement there is an existing event of default or if the payment would create an event of default. In addition, during the years ended December 31, 2022, 2021 and 2020, the Company paid previously declared but unrecorded dividends totaling $5 thousand, $8 thousand, and $0.4 million, respectively, that were contingent upon the vesting of performance vested restricted units. Share Repurchases and Redemptions In 1998, we instituted a share repurchase program. The Company may purchase stock under the share repurchase program to return excess capital to its shareholders. Treasury stock activity is recorded at cost in the consolidated balance sheets. During the three months ended March 31, 2020, the Company repurchased 0.5 million shares of common stock under the repurchase program at a total cost of $43.3 million. In light of uncertainty resulting from the COVID-19 pandemic, the Company subsequently temporarily suspended activity under the share repurchase program and no additional repurchases were made pursuant to the program for the balance of 2020. On May 7, 2021, the Company's Board of Directors approved resumption of the share repurchase program. During the year ended December 31, 2021, the Company repurchased 57,754 shares of its common stock under the repurchase program at a total cost of $7.3 million. During the year ended December 31, 2022, the Company repurchased 3,666,298 shares of its common stock under the repurchase program at a total cost of $429.4 million. On a cumulative basis through December 31, 2022, the Company repurchased 88.4 million shares of its common stock (including 33.0 million prior to the two-for-one stock split effected in October 2005) under the share repurchase program at a total cost of $1.9 billion. During the year ended December 31, 2022, the Company redeemed 36,120 shares of common stock at a total cost of approximately $5.4 million from employees to satisfy the option exercise price and statutory minimum tax-withholding requirements related to the exercising of stock options and vesting of performance vested restricted stock units and restricted stock grants. During 2021 and 2020, the Company redeemed 54,441 and 125,996 shares of common stock at a total cost of $6.0 million and $12.2 million, respectively, from employees to satisfy the option price and minimum tax-withholding requirements related to the exercising of options and vesting of performance vested restricted stock units and restricted stock grants. These redemptions were outside the share repurchase program.

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- Definition The entire disclosure for share-based payment arrangement. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=128089324&loc=d3e5070-113901 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI https://asc.fasb.org/topic&trid=2228938 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (l) -URI https://asc.fasb.org/extlink&oid=128089324&loc=d3e5070-113901 Reference 4: http://www.xbrl.org/2003/role/exampleRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a)(1) -URI https://asc.fasb.org/extlink&oid=128089324&loc=d3e5070-113901 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (h)(2)(i) -URI https://asc.fasb.org/extlink&oid=128089324&loc=d3e5070-113901 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (h)(2) -URI https://asc.fasb.org/extlink&oid=128089324&loc=d3e5070-113901 + Details
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