Stock-Based Compensation

3 Months Ended

Mar. 31, 2023

Stock-Based Compensation [Abstract]

Stock-Based Compensation

12.STOCK-BASED COMPENSATION

Stock Options

The Company records compensation expense for employee stock options based on the estimated fair value of the options on the date of grant using the Black-Scholes option-pricing model. The Company uses a combination of historical data and historical volatility to establish the expected volatility, as well as to estimate the expected option life. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant for the estimated life of the option. There were no options granted during the three months ended March 31, 2023.

The following table summarizes the Company’s activities with respect to its stock option plans for the three months ended March 31, 2023 as follows (dollars and shares in thousands, except for per share data):

		Weighted-		Weighted-Average
		Average		Remaining
	Number	Exercise Price		Contractual	Aggregate
	of Shares	Per Share		Life (in years)	Intrinsic Value
Outstanding at December 31, 2022	1,673	$	161.02
Exercised	(112)	$	107.43
Forfeited/canceled	(1)	$	217.40
Outstanding at March 31, 2023	1,560	$	164.84	2.3	$	150,596
Exercisable at March 31, 2023	1,543	$	163.68	2.2	$	150,375
Unvested at March 31, 2023	17	$	282.56	7.2	$	221

The total intrinsic value for options exercised during the three months ended March 31, 2023 was $19.0 million.

Restricted Stock Units and Performance-Based Restricted Stock Units

The following table summarizes the Company’s RSU and PSU activity for the three months ended March 31, 2023:

	RSUs			PSUs (1)
		Weighted-Average			Weighted-Average
	Number of	Grant Date Fair		Number of	Grant Date Fair
	Shares	Value per Share		Shares	Value per Share
	(in thousands)			(in thousands)
Outstanding at December 31, 2022	222	$	280.66	429	$	332.18
Granted	163	$	256.19	95	$	263.53
PSU adjustment (2)	—	$	—	65	$	302.96
Vested	(111)	$	262.07	(207)	$	345.08
Forfeited/canceled	(7)	$	281.10	(13)	$	295.77
Outstanding at March 31, 2023	267	$	273.43	369	$	298.88

(1)PSUs represent the target number of shares granted that are issuable at the end of the three year performance period. Fair value for a portion of the PSUs was calculated using a Monte Carlo simulation model.

(2)PSU adjustment represents the net PSUs awarded above or below their target grants resulting from the achievement of performance targets established at the grant date.