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Share-based Compensation Plans (Tables) | 12 Months Ended
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Dec. 31, 2022
Share-Based Payment Arrangement [Abstract] |
Share-based Payment Arrangement, Expensed Amount | Stock-based compensation expense, which is included in Operations and maintenance on the accompanying Consolidated Statements of Income, was as follows for the years ended December 31 (in thousands):
|  | 2022 |  |  | 2021 |  |  | 2020 |
Stock-based compensation expense |  | $ | 8,551 |  |  | $ | 9,655 |  |  | $ | 5,373 |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | A summary of the status of the restricted stock and restricted stock units at December 31, 2022, was as follows:
|  | Restricted Stock |  |  | Weighted-Average Grant Date Fair Value |
|  | (in thousands) |  |  |  |
Balance at January 1, 2022 |  |  | 219 |  |  | $ | 67.64 |
Granted |  |  | 70 |  |  |  | 69.03 |
Vested |  |  | (94 | ) |  |  | 69.64 |
Forfeited |  |  | (16 | ) |  |  | 66.03 |
Balance at December 31, 2022 |  |  | 179 |  |  | $ | 67.23 |
The weighted-average grant-date fair value of restricted stock granted, and the total fair value of shares vested during the years ended December 31, were as follows:
|  | Weighted-Average Grant Date Fair Value |  |  | Total Fair Value of Shares Vested |
|  |  |  |  | (in thousands) |
2022 |  | $ | 69.03 |  |  | $ | 6,436 |
2021 |  | $ | 65.64 |  |  | $ | 5,400 |
2020 |  | $ | 69.49 |  |  | $ | 6,722 |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award | The outstanding performance periods at December 31, 2022 were as follows (shares in thousands):
|  |  |  |  |  |  | Possible Payout Range of Target
Grant Date |  | Performance Period |  | Target Grant of Shares |  |  | Minimum |  | Maximum
January 1, 2020 |  | January 1, 2020 - December 31, 2022 |  |  | 36 |  |  | 0% |  | 200%
A summary of the status of the Performance Share Plan at December 31, 2022 was as follows:
|  | Equity Portion |  |  | Liability Portion |
|  |  |  |  | Weighted-Average Grant Date |  |  |  |  |  | Weighted-Average Fair Value at |
|  | Shares |  |  | Fair Value (a) |  |  | Shares |  |  | December 31, 2022 |
|  | (in thousands) |  |  |  |  |  | (in thousands) |  |  |  |
Performance Shares balance at beginning of period |  |  | 36 |  |  | $ | 68.14 |  |  |  | 36 |  |  |  |
Granted |  |  | — |  |  |  | — |  |  |  | — |  |  |  |
Forfeited |  |  | — |  |  |  | — |  |  |  | — |  |  |  |
Vested |  |  | (18 | ) |  |  | 68.72 |  |  |  | (18 | ) |  |  |
Performance Shares balance at end of period |  |  | 18 |  |  | $ | 81.42 |  |  |  | 18 |  |  | $ | 32.74 |
(a) The grant date fair values for the performance shares granted in 2020 were determined by Monte Carlo simulation using a blended volatility of 18%, comprised of 50% historical volatility and 50% implied volatility and the average risk-free interest rate of the three-year United States Treasury security rate in effect as of the grant date. The weighted-average grant-date fair value of performance share awards granted was as follows in the years ended:
|  | Weighted Average Grant Date Fair Value |
December 31, 2020 |  | $ | 81.42 |
Performance Plan Payouts | Performance plan payouts have been as follows (in thousands):
Performance Period |  | Year Paid |  | Stock Issued |  |  | Cash Paid |  |  | Total Intrinsic Value |
January 1, 2019 to December 31, 2021 |  | 2022 |  |  | 8 |  |  | $ | 519 |  |  | $ | 1,038 |
January 1, 2018 to December 31, 2020 |  | 2021 |  |  | 28 |  |  | $ | 1,647 |  |  | $ | 3,294 |
January 1, 2017 to December 31, 2019 |  | 2020 |  |  | 14 |  |  | $ | 1,100 |  |  | $ | 2,199 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The Monte Carlo simulation is used to estimate expected share payout based on the Company’s TSR for a three-year performance period relative to the designated peer group beginning January 1 of the award year.
|  | 2022 | 2021
Fair value of share units award |  | 74.48 | 64.97
Three-year risk-free rate |  | 0.97% | 0.17%
Black Hills Corporation’s common stock volatility |  | 30% | 33%
Volatility range for the peer group |  | 22-67% | 25-76%
Schedule of Nonvested Share Activity | The following table summarizes the performance share unit activity for the year ended December 31, 2022:
|  | Performance Share Units - Market Condition |  |  | Performance Share Units - Performance Condition |
|  | Share Units |  |  | Weighted-Average Fair Value per Share Unit |  |  | Share Units |  |  | Weighted-Average Fair Value per Share Unit |
Nonvested at January 1, 2022 |  |  | 32,903 |  |  | $ | 64.97 |  |  |  | 21,948 |  |  | $ | 61.45 |
Granted |  |  | 35,571 |  |  |  | 74.48 |  |  |  | 23,718 |  |  |  | 70.57 |
Nonvested at December 31, 2022 |  |  | 68,474 |  |  | $ | 69.91 |  |  |  | 45,666 |  |  | $ | 66.19 |

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- Definition Tabular disclosure of the significant assumptions used during the year to estimate the fair value of stock options, including, but not limited to: (a) expected term of share options and similar instruments, (b) expected volatility of the entity's shares, (c) expected dividends, (d) risk-free rate(s), and (e) discount for post-vesting restrictions. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (f)(2) -URI https://asc.fasb.org/extlink&oid=128089324&loc=d3e5070-113901 + Details
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