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Stock-Based Compensation
 12 Months Ended
Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation Stock-Based Compensation
 
Equity Plans: The Company has equity-based compensation plans authorizing the granting of stock options, restricted shares, restricted share units, and other stock rights to employees and directors. As of December 31, 2022, there were 0.6 million shares available for issuance of future awards under the Company’s equity-based compensation plans.
 
Stock options generally vest over a three-year period and are exercisable over either a seven or ten-year period commencing from the date of the grant. Restricted shares and share units granted by the Company generally vest over three years. Stock options and restricted share units may have accelerated vesting upon meeting certain qualified conditions.

The following table provides a reconciliation of outstanding stock options for the fiscal year ended December 31, 2022.
 
 Shares Under
Option		Weighted
Average
Price		Weighted
Average
Remaining
Contract Life
(Years)		Aggregate
Intrinsic
Value
(000’s)
Outstanding January 1, 2022563,226 $165.98 
Granted86,220 231.64 
Exercised(29,353)132.31 
Forfeited(2,237)153.14 
Outstanding December 31, 2022617,856 176.79 4.2$30,555 
Exercisable December 31, 2022292,824 159.93 3.218,566 
 
The following table provides a reconciliation of non-vested restricted share and share unit awards ("RSU") for the fiscal year ended December 31, 2022.
 
 SharesWeighted Average
Grant-Date Fair Value
Nonvested January 1, 2022156,659 $192.44 
Granted90,970 228.78 
Vested(71,822)185.06 
Forfeited(7,521)227.96 
Nonvested December 31, 2022168,286 213.65 
 
The total intrinsic value of options exercised during 2022, 2021, and 2020 was $3.7 million, $23.8 million, and $20.6 million, respectively. The total fair value of the vested RSU shares was $15.4 million, $18.9 million, and $9.5 million for 2022, 2021,
and 2020, respectively. The total amount of share-based liabilities paid was $1.1 million, $1.3 million and $0.5 million for 2022, 2021, and 2020, respectively.
 
The Company recognizes compensation cost of all share-based awards as an expense on a straight-line basis over the vesting period of the awards. At December 31, 2022, the unrecognized compensation cost for options and restricted shares was $21.1 million before tax, and will be recognized over a weighted average period of 1.8 years. Compensation cost included as a component of cost of sales, research and development and selling, general, and administrative expenses for all equity compensation plans discussed above was $24.6 million, $21.4 million, and $19.1 million for 2022, 2021, and 2020, respectively. The total related income tax benefit recognized in the Consolidated Statements of Net Income was $3.5 million, $3.3 million and $3.1 million for 2022, 2021, and 2020, respectively.
 
The Company uses the Black-Scholes option valuation model to determine the fair value of stock option awards granted. The weighted average fair value of and related assumptions for options granted are as follows:
 
 202220212020
Weighted average fair value of options granted$70.39$74.04$38.09
Assumptions:
Risk-free interest rate2.83%0.66%0.30%
Expected dividend yield0.92%0.72%1.27%
Expected stock price volatility35.0%35.0%33.0%
Expected life of options (years)4.44.44.7
 
Expected volatilities are based on the historical volatility of the Company’s stock price. The expected life of options is based on historical data for options granted by the Company. The risk-free rates are based on yields available at the time of grant on U.S. Treasury bonds with maturities consistent with the expected life assumption. Historical nonvested forfeiture information is the basis for the forfeiture rate assumptions.

The fair value of RSU is determined based on the Company's stock price on the grant date reduced by the present value of expected dividends through the vesting period.

Preferred Stock: The Board of Directors may authorize the issuance of preferred stock from time to time in one or more series with such designations, preferences, qualifications, limitations, restrictions, and optional or other special rights as the Board may fix by resolution.
 
Share Repurchase Program

On April 29, 2020, the Company announced that the Board of Directors authorized a new program to repurchase up to 1,000,000 shares of the Company's common stock for the period May 1, 2020 to April 30, 2021 (the "2020 program") . On April 28, 2021, the Company announced that the Board of Directors authorized a new three-year program to repurchase up to $300 million in the aggregate of shares of the Company’s common stock for the period May 1, 2021 to April 30, 2024 to replace its previous 2020 program. There are $300 million in the aggregate of shares available for purchase under the new program as of December 31, 2022.

During the fiscal years 2022 and 2021, the Company did not repurchase any shares of its common stock. During the fiscal year 2020, the Company repurchased 175,110 shares of its common stock totaling $22.9 million.