Stock-Based Compensation

3 Months Ended

Mar. 31, 2022

Deferred Compensation Arrangements [Abstract]

Note 9. Share-Based Compensation

The Company’s outstanding stock incentive awards have been granted under two incentive plans – the 2012 Stock Incentive Plan (“2012 Plan”) and the 2019 Stock Incentive Plan (“2019 Plan”). During the first quarter of 2022, we granted options to purchase 693,000 shares of common stock under the 2019 Plan. As of March 31, 2022, shares available for future grants totaled

1,447,336 under the 2019 Plan. The following is a summary of share-based compensation expense, net of any forfeitures, included in “General and administrative expenses” in the Condensed Consolidated Statements of Income ($ in thousands):


	Three Months Ended
	March 31,
	2022		2021
Non-cash share-based compensation expense	$	5,083	$	5,446

The weighted average fair value of options granted during the three months ended March 31, 2022 and 2021 was $11.81 and $14.54 per option, respectively. The fair value of each grant is estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions:


	2022	2021
Dividend yield	7.1%	6.7%
Expected volatility	49.2%	48.1%
Expected lives	2.9 years	2.9 years
Risk-free interest rate	1.72%	0.33%

The following table summarizes our outstanding stock options:


			Weighted Average
	Number	Weighted Average	Remaining
	of Shares	Exercise Price	Contractual Life (Years)
Options outstanding, January 1, 2021	1,033,838	$83.54
Options granted	652,000	$69.20
Options exercised	(20,000)	$60.52

Options outstanding, March 31, 2021	1,665,838	$78.20

Exercisable at March 31, 2021	1,180,824	$79.31

Options outstanding, January 1, 2022	1,652,505	$78.10
Options granted	693,000	$53.41
Options exercised	(7,500)	$53.41
Options forfeited	(23,000)	$62.33
Options expired	(74,498)	$77.93
Options outstanding, March 31, 2022	2,240,507	$70.71	3.57

Exercisable at March 31, 2022	1,719,487	$74.34	3.27

At March 31, 2022, the aggregate intrinsic value of stock options outstanding and exercisable was $3.8 million and $1.9 million, respectively. The aggregate intrinsic value of stock options exercised during the three months ended March 31, 2022 and 2021 was $4.94 per share or less than $0.1 million; and $9.27 per share or $0.2 million, respectively.

As of March 31, 2022, unrecognized compensation expense totaling $4.9 million associated with unvested stock options is expected to be recognized over the following periods: remainder of 2022 - $3.2 million, 2023 - $1.5 million and 2024 - $0.2 million.