Share-Based Compensation

6 Months Ended

Jun. 30, 2023

8 -	Share–Based Compensation

We measure all share-based payments to employees, including grants of stock options, and use a fair-value-based method for the recording of related compensation expense in our results of operations. In determining the expense we record for stock options granted to directors and employees of our subsidiaries and affiliates, we estimate the fair value of each option award on the date of grant using the Black-Scholes option pricing model. The significant assumptions we utilize in applying the Black-Scholes option pricing model are the risk-free interest rate, the expected term, the dividend yield and the expected volatility.

We recorded compensation expense related to our stock compensation plans of $249,481 and $241,645 for the three months ended June 30, 2023 and 2022, respectively, with a corresponding income tax benefit of $52,391 and $50,745, respectively. We recorded compensation expense related to our stock compensation plans of $501,254 and $485,785 for the six months ended June 30, 2023 and 2022, respectively, with a corresponding income tax benefit of $105,263 and $102,015, respectively. At June 30, 2023, we had $1.2 million of unrecognized compensation expense related to nonvested share-based compensation granted under our stock compensation plans that we expect to recognize over a weighted average period of approximately 1.7 years.

We received cash from option exercises under all stock compensation plans during the three months ended June 30, 2023 and 2022 of $ 2.7 million and $11.2 million, respectively. We received cash from option exercises under all stock compensation plans during the six months ended June 30, 2023 and 2022 of $4.7 million and $11.3 million, respectively. We realized actual tax benefits for the tax deductions related to those option exercises of $ 66,955 and $264,659 for the three months ended June 30, 2023 and 2022, respectively. We realized actual tax benefits for the tax deductions related to those option exercises of $113,143 and $264,812 for the six months ended June 30, 2023 and 2022, respectively.