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Share-Based Compensation and Capital Stock | 12 Months Ended
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Dec. 31, 2023
Share-Based Payment Arrangement [Abstract] |
Share-Based Compensation and Capital Stock | Share-Based Compensation and Capital Stock Share-Based Compensation The Company has stock compensation plans pursuant to which it is authorized to grant share-based awards, including restricted stock, stock options, stock appreciation rights, and performance-based share awards, to officers, key employees, and non-employee directors with contractual terms that are set by the Compensation and Management Development Committee of the Board of Directors. Approximately 1.4 million shares of the Company's common stock remain available for grant as of December 31, 2023. The Company’s policy allows the issuance of new common stock shares or treasury shares to satisfy the share-based awards. Stock Options During the years ended December 31, 2023, 2022, and 2021, the Company granted approximately 0.1 million, 0.2 million, and 0.3 million stock options to certain employees of the Company at a fair value of approximately $3.8 million, $7.4 million, and $7.9 million, 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:
| 2023 |  | 2022 |  | 2021
Risk-free interest rate | 4.10 | % |  | 2.01 | % |  | 0.94 | %
Expected volatility | 30.90 | % |  | 29.46 | % |  | 29.23 | %
Expected life of stock option | 6.0 years |  | 5.9 years |  | 5.9 years
Dividend yield | 0.90 | % |  | 0.66 | % |  | 0.82 | %
Requisite service period | 4 years |  | 4 years |  | 4 years
Contractual life | 10 years |  | 10 years |  | 10 years
Weighted average fair value of the stock options granted (per stock option) | $ | 42.59 |  |  | $ | 42.66 |  |  | $ | 28.00 |
The expected life of the stock options and the expected volatility are based on historical data which is believed to be indicative of future exercise patterns and volatility. The 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 interest rate are calculated on the grant date based on the then-current dividend rate and the risk-free interest rate for the period corresponding to the expected life of the stock option. The Company recognizes compensation expense related to the fair value of these awards on a straight-line basis over the requisite service period for the share-based awards that ultimately vest. As of December 31, 2023, the aggregate intrinsic value of the stock options outstanding and exercisable was $15.7 million and $13.7 million, respectively. For the years ended December 31, 2023, 2022, and 2021, the total intrinsic value of the stock options exercised was $9.2 million, $5.4 million, and $10.6 million, respectively. During the years ended December 31, 2023, 2022, and 2021, the Company received $6.3 million, $3.8 million, and $11.1 million in proceeds from the exercise of approximately 0.1 million, 0.1 million, and 0.2 million employee stock options, respectively. The following table summarizes information about the stock options outstanding as of December 31, 2023:
|  | Options Outstanding |  | Options Exercisable
Range of Exercise Prices |  | Number Outstanding at December 31, 2023 |  | Weighted Average Remaining Contractual Life (in Years) |  | Weighted Average Exercise Price |  | Number Exercisable at December 31, 2023 |  | Weighted Average Exercise Price
$55.01 to $65.00 |  | 62,946 |  |  | 0.2 |  | $ | 60.74 |  |  | 62,946 |  |  | $ | 60.74 |
$65.01 to $85.00 |  | 211,358 |  |  | 1.8 |  | 81.30 |  |  | 211,358 |  |  | 81.30 |
$85.01 to $91.28 |  | 153,692 |  |  | 6.2 |  | 91.28 |  |  | 115,257 |  |  | 91.28 |
$91.29 to $104.87 |  | 267,361 |  |  | 7.2 |  | 104.87 |  |  | 133,206 |  |  | 104.87 |
$104.88 to $117.98 |  | 16,667 |  |  | 8.6 |  | 117.98 |  |  | 4,166 |  |  | 117.98 |
$117.99 to $146.68 |  | 231,617 |  |  | 8.5 |  | 138.42 |  |  | 37,071 |  |  | 146.68 |
|  | 943,641 |  |  | 5.7 |  | $ | 102.90 |  |  | 564,004 |  |  | $ | 91.18 |
Restricted Stock The following table is a summary of the activity related to restricted stock grants:
| For the Year Ended December 31,
| 2023 |  | 2022 |  | 2021
Restricted shares granted | 65,991 |  |  | 273,777 |  |  | 61,009 |
Weighted average grant date fair value per share | $ | 123.65 |  |  | $ | 143.76 |  |  | $ | 111.25 |
Aggregate grant date fair value (in thousands) | $ | 8,160 |  |  | $ | 39,357 |  |  | $ | 6,787 |
Restricted shares forfeited | 13,202 |  |  | 14,443 |  |  | 19,209 |
Vesting service period for the restricted shares granted | 9 - 48 months |  | 9 - 60 months |  | 9 - 48 months
Fair value of the restricted shares vested (in thousands) | $ | 11,134 |  |  | $ | 13,784 |  |  | $ | 11,927 |
The Company recognizes compensation expense related to the fair value of the restricted stock awards on a straight-line basis over the requisite service period for the restricted stock awards that ultimately vest. The fair value of the grants is measured by the market price of the Company’s common stock on the date of grant. The restricted stock awards generally vest ratably over the service period beginning on the first anniversary of the grant date. The restricted stock 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 the PVRSU awards is contingent upon the Company achieving the internal performance and/or TSR targets over a specified period and the employees' continued employment over the service period. The performance and market conditions affect the number of shares that will ultimately vest. During the year ended December 31, 2023, the Company granted PVRSUs with performance conditions, PVRSUs with market conditions, and PVRSUs with performance and market conditions, with requisite service periods between 9 months and 48 months and with award vesting ranges generally between 0% and 230% of the initial units granted. The fair value of the PVRSUs with performance conditions based on internal performance metrics is measured by the market price of the Company's common stock on the date of the award grant. The Company recognizes compensation expense ratably over the requisite service period based on the Company's estimate of achieving the performance conditions. The Company monitors its current results and forecasts of the relevant internal performance metrics and, as necessary, adjusts the performance-based leveraging of any unvested PVRSUs. The fair value of the PVRSUs with market conditions is estimated using a Monte Carlo simulation method as of the date of the award grant. The Company recognizes compensation expense ratably over the requisite service period regardless of whether the market conditions are achieved and the awards ultimately vest. The fair value of the PVRSUs with both performance and market conditions is estimated using a Monte Carlo simulation as of the date of the award grant. The Company recognizes compensation expense ratably over the requisite service period based on the Company's estimate of achieving the performance conditions, with subsequent adjustments being made for the performance-based leveraging of any unvested PVRSUs, as necessary. The Company has currently estimated that between 0% and 267% of the various award targets will be achieved. The following table is a summary of the activity related to the PVRSU grants:
| For the Years Ended December 31,
| 2023 |  | 2022 |  | 2021
PVRSUs granted at target | 110,636 |  |  | 111,585 |  |  | 98,544 |
Weighted average grant date fair value per share | $ | 128.71 |  |  | $ | 181.91 |  |  | $ | 108.75 |
Aggregate grant date fair value (in thousands) | $ | 14,240 |  |  | $ | 20,298 |  |  | $ | 10,716 |
PVRSUs forfeited & expired | 16,504 |  |  | 83,563 |  |  | 78,500 |
Requisite service period | 9 - 48 months |  | 9 - 60 months |  | 9 - 60 months
During the year ended December 31, 2023, 119,751 PVRSUs vested at a fair value of $17.4 million. During the year ended December 31, 2022, there were no PVRSUs vested. During the year ended December 31, 2021, 3,986 PVRSUs vested at a fair value of $0.3 million and an additional 920 units were awarded because the Company's performance exceeded the conditions provided in the PVRSU awards. During the years ended December 31, 2023, 2022, and 2021, the number of PVRSUs that expired was 0 shares, 78,370 shares, and 72,944 shares, respectively, as a result of the Company's operating results not achieving the performance conditions contained in the PVRSU awards. For the years ended December 31, 2023, 2022, and 2021, the following tables present a summary of the share-based award activity during those respective years:
| 2023
| 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, 2023 | 1,010,647 |  |  | $ | 94.97 |  |  |  |  | 399,099 |  |  | $ | 128.47 |  |  | 437,180 |  |  | $ | 140.05 |
Granted | 88,733 |  |  | 123.62 |  |  |  |  | 65,991 |  |  | 123.65 |  |  | 110,636 |  |  | 128.71 |
Performance-based leveraging* | — |  |  | — |  |  |  |  | — |  |  | — |  |  | 46,934 |  |  | 139.47 |
Exercised/vested | (143,357) |  |  | 57.72 |  |  |  |  | (90,220) |  |  | 96.14 |  |  | (119,751) |  |  | 145.41 |
Expired | (1,054) |  |  | 146.68 |  |  |  |  | — |  |  | — |  |  | — |  |  | — |
Forfeited | (11,328) |  |  | 124.94 |  |  |  |  | (13,202) |  |  | (118.56) |  |  | (16,504) |  |  | 131.91 |
Outstanding as of December 31, 2023 | 943,641 |  |  | $ | 102.90 |  |  | 5.6 years |  | 361,668 |  |  | $ | 136.05 |  |  | 458,495 |  |  | $ | 136.14 |
Options exercisable as of December 31, 2023 | 564,004 |  |  | $ | 91.18 |  |  | 4.3 years |  |  |  |  |  |  |  |
* The outstanding PVRSUs have been adjusted by 46,934 net units during the year ended December 31, 2023, due to an increase in the outstanding PVRSUs as a result of the Company exceeding the targeted performance conditions.
| 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 |  |  |  |  |  |  |  |
* The outstanding PVRSUs have been adjusted by 3,484 net units during the year ended December 31, 2022, due to a decrease in the outstanding PVRSUs as a result of the Company partially meeting the targeted performance conditions, partially offset by an increase in the outstanding PVRSUs due to the Company exceeding the targeted performance conditions for the PVRSUs that were 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 |  |  |  |  |  |  |  |
* The outstanding PVRSUs were increased by 74,832 units during the year ended December 31, 2021, due to the Company exceeding the targeted performance conditions contained in the PVRSUs that were granted in prior periods. The components of the Company’s share-based compensation expense were as follows:
| For the Year Ended December 31,
(in thousands) | 2023 |  | 2022 |  | 2021
Stock options | $ | 5,816 |  |  | $ | 4,674 |  |  | $ | 3,396 |
Restricted stock awards | 13,774 |  |  | 14,349 |  |  | 9,281 |
Performance vested restricted stock units | 20,924 |  |  | 21,436 |  |  | 10,703 |
Total share-based compensation expense | $ | 40,514 |  |  | $ | 40,459 |  |  | $ | 23,380 |
The following table as of December 31, 2023 is a summary of the total unrecognized compensation expense related to the share-based awards that have not yet vested and the related weighted average amortization periods over which the compensation expense will be recognized:
(in thousands) | Unrecognized Compensation Expense on Unvested Awards |  | Weighted Average Remaining Amortization Period
Stock options | $ | 7,952 |  |  | 2.1 years
Restricted stock awards | 30,350 |  |  | 2.9 years
Performance vested restricted stock units | 25,634 |  |  | 2.1 years
Total | $ | 63,936 |  |  |
Dividends In March 2023, the Company's board of directors approved a 21% increase in the quarterly cash dividend to $0.2875 per share, which is the current per share dividend amount that was utilized in each of the dividends that were declared in 2023. The annual dividends declared during the year ended December 31, 2023 was $1.15 per share or $57.9 million. During the year ended December 31, 2022, the Company's quarterly dividend rate was $0.2375 per share. The annual dividends declared during the year ended December 31, 2022 was $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 quarters and $0.2375 per share for the fourth quarter. The annual dividends declared during the year ended December 31, 2021 was $0.688 per share or $38.2 million. The Company may not declare or make any payment under the Restated Credit agreement and the 2023 Term Loan if there is an existing event of default or if the payment would create an event of default. 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. On May 7, 2021, the Company's Board of Directors approved a motion to resume the share repurchase program. During the year ended December 31, 2021, the Company repurchased less than 0.1 million shares of its common stock under the share repurchase program at a total cost of $7.3 million. During the year ended December 31, 2022, the Company repurchased 3.7 million shares of its common stock under the share repurchase program at a total cost of $429.4 million. During the year ended December 31, 2023, the Company repurchased 2.9 million shares of its common stock under the share repurchase program at a total cost of $351.7 million. On a cumulative basis through December 31, 2023, the Company has repurchased 91.3 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 $2.3 billion. During the years ended December 31, 2023, 2022, and 2021, the Company redeemed 114,242, 36,120, and 54,441, respectively, shares of common stock at a total cost of approximately $14.2 million, $5.4 million, and $6.0 million, respectively, from employees to satisfy the stock option exercise price and the statutory minimum tax-withholding requirements related to exercising stock options and the vesting of performance vested restricted stock units and restricted stock grants. These redemptions were outside the share repurchase program.

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