Share-Based Compensation

9 Months Ended

Sep. 30, 2022

Share-based Payment Arrangement [Abstract]

Stock-Based Compensation

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 nine months ended September 30, 2022, we granted options to purchase 0.7 million shares of common stock under the 2019 Plan. As of September 30, 2022, shares available for future grants totaled 1.4 million 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				Nine Months Ended
	September 30,				September 30,
	2022		2021		2022		2021
Non-cash share-based compensation expense	$	1,065	$	989	$	7,576	$	7,427

The weighted average fair value of options granted during the nine months ended September 30, 2022 and 2021 was $11.92 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	7.0%	6.7%
Expected volatility	49.3%	48.1%
Expected lives	2.9 years	2.9 years
Risk-free interest rate	1.75%	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, September 30, 2021	1,665,838	$78.20
Exercisable at September 30, 2021	1,183,324	$79.25
Options outstanding, January 1, 2022	1,652,505	$78.10
Options granted	718,000	$53.62
Options exercised	(56,832)	$53.41
Options forfeited	(23,000)	$62.33
Options expired	(74,498)	$77.93
Options outstanding, September 30, 2022	2,216,175	$70.97	3.06
Exercisable at September 30, 2022	1,695,155	$74.73	2.75

At September 30, 2022, the aggregate intrinsic value of stock options outstanding and exercisable was $2.0 million and $0.9 million, respectively. The aggregate intrinsic value of stock options exercised during the nine months ended September 30, 2022 and 2021 was $0.1 million or $4.94 per share; and $0.2 million or $9.27 per share, respectively.

As of September 30, 2022, unrecognized compensation expense totaling $2.7 million associated with unvested stock options is expected to be recognized over the following periods: remainder of 2022 - $1.0 million, 2023 - $1.5 million and 2024 - $0.2 million.