Stock-Based Compensation

12 Months Ended

Dec. 31, 2022

Share-Based Payment Arrangement, Noncash Expense [Abstract]

We grant stock-based compensation awards, including restricted stock units, phantom stock, and unrestricted stock units, under the Second Amended and Restated 2010 Stock Incentive Plan (Stock Incentive Plan). Prior to December 31, 2020, stock options were also granted as part of the stock-based compensation awards. In the Stock Incentive Plan, we have 12,623,538 shares of common stock reserved and authorized for issuance subject to stock splits, dividends, and other similar events, and at December 31, 2022, 4,602,456 shares were available for grant. We issue new shares of common stock upon the exercise of stock options or when vesting conditions on restricted stock units are fully satisfied. These shares are subject to a fungible share provision such that the authorized share available for grant is reduced by (i) one share for every one share subject to a stock option or share appreciation right granted under the Plan and (ii) 1.7 shares for every one share of common stock that was subject to an award other than an option or share appreciation right.

We also award phantom stock units, which are settled in cash upon vesting and accounted for as liability-based awards, with no impact to the shares available for grant.

In addition, we maintain the ESPP, for which 71,253 shares of common stock were available for future issuance at December 31, 2022.

ESPP activity and stock-based grants other than stock options and restricted stock units were not significant for the years ended December 31, 2022, 2021, and 2020.

Stock-Based Compensation Expense

Total stock-based compensation expense and the related tax benefit were as follows:


	Year Ended December 31,
In thousands	2022		2021		2020
Stock options	$	891	$	1,371	$	1,944
Restricted stock units	20,038		21,391		22,285
Unrestricted stock awards	952		856		824
Phantom stock units	1,315		3,242		3,720
Total stock-based compensation	$	23,196	$	26,860	$	28,773

Related tax benefit	$	5,371	$	4,991	$	5,086

Stock Options

A summary of our stock option activity is as follows:


	Shares	Weighted Average Exercise Price per Share		Weighted Average Remaining Contractual Life	Aggregate Intrinsic Value		Weighted Average Grant Date Fair Value
	In thousands			Years	In thousands
Outstanding, January 1, 2020	458	$	56.38	7.0	$	12,641


Granted	83	84.39					$	26.37
Exercised	(103)	53.99			2,061
Forfeited	(5)	83.94

Outstanding, December 31, 2020	433	$	61.95	6.9	$	14,697


Granted	—	—					$	—
Exercised	(34)	67.21			1,215
Forfeited	(6)	83.33

Outstanding, December 31, 2021	393	$	61.18	5.9	$	4,737


Granted	—	—					$	—
Exercised	(1)	45.90			4
Canceled	(9)	80.00
Forfeited	(2)	87.27
Outstanding, December 31, 2022	381	$	60.63	4.8	$	1,892

Exercisable, December 31, 2022	360	$	59.25	4.7	$	1,892

At December 31, 2022, total unrecognized stock-based compensation expense related to nonvested stock options was $0.1 million, which is expected to be recognized over a weighted average period of approximately 0.6 year.

The weighted average assumptions used to estimate the fair value of stock options granted and the resulting weighted average fair value are as follows:


	Year Ended December 31,
	2022		2021		2020
Expected volatility	—	%	—	%	32.3	%
Risk-free interest rate	—	%	—	%	1.3	%
Expected term (years)	N/A		N/A		5.3

Employee stock options are no longer a part of our stock compensation plan as of December 31, 2020.

Restricted Stock Units

The following table summarizes restricted stock unit activity:


	Number of Restricted Stock Units	Weighted Average Grant Date Fair Value		Aggregate Intrinsic Value
	In thousands			In thousands
Outstanding, January 1, 2020	684	$	64.38


Granted	262	83.42
Released (1)	(363)			$	23,702
Forfeited	(39)
Outstanding, December 31, 2020	544	$	71.79


Granted	230	97.66
Released (1)	(293)			$	20,639
Forfeited	(51)
Outstanding, December 31, 2021	430	$	85.77

Granted	391	53.33
Released (1)	(227)	80.08		$	18,169
Forfeited	(66)	71.08
Outstanding, December 31, 2022	528	$	66.39

Vested but not released, December 31, 2022	12	$	50.65	$	606

(1) Shares released is presented as gross shares and does not reflect shares withheld by us for employee payroll tax obligations.

At December 31, 2022, total unrecognized compensation expense on restricted stock units was $21.0 million, which is expected to be recognized over a weighted average period of approximately 1.7 years.

The weighted average assumptions used to estimate the fair value of performance-based restricted stock units granted with a service and market condition and the resulting weighted average fair value are as follows:


	Year Ended December 31,
	2022			2021			2020
Expected volatility	55.7		%	54.2		%	44.9		%
Risk-free interest rate	1.7		%	0.4		%	1.0		%
Expected term (years)	2.9			1.9			1.8

Weighted average fair value	$	57.88		$	77.65		$	93.97

Phantom Stock Units

The following table summarizes phantom stock unit activity:


	Number of Phantom Stock Units	Weighted Average Grant Date Fair Value		Aggregate Intrinsic Value
	In thousands			In thousands
Outstanding, January 1, 2020	89	$	62.85

Granted	38	87.27
Released	(40)			$	2,971
Forfeited	(5)
Outstanding, December 31, 2020	82	$	73.13





Granted	35	96.49
Released	(41)			$	4,100
Forfeited	(7)
Outstanding, December 31, 2021	69	$	85.47




Granted	59	53.07
Released	(34)	79.08		$	1,780
Forfeited	(9)	76.02
Outstanding, December 31, 2022	85	$	66.46

At December 31, 2022, total unrecognized compensation expense on phantom stock units was $2.6 million, which is expected to be recognized over a weighted average period of approximately 1.9 years. As of December 31, 2022 and 2021, we have recognized a phantom stock liability of $1.7 million and $1.9 million within wages and benefits payable in the Consolidated Balance Sheets.