XML 48 R27.htm IDEA: XBRL DOCUMENT v3.24.0.1
Share-Based Compensation Level 1 (Notes)
 12 Months Ended
Dec. 31, 2023
Share-Based Payment Arrangement, Noncash Expense [Abstract]  
Share-based Payment Arrangement [Text Block] Share-Based Compensation
Stock Benefit Plans
We maintain benefit plans whereby shares of our common stock may be issued pursuant to the exercise of stock options or restricted stock granted to officers and key associates. Our Amended and Restated Incentive Plan ("the 1996 Plan") reserved 44,000,000 shares of our common stock for outstanding and future awards of stock options, restricted stock, and other share-based awards to officers and key associates. In May 2017, our shareholders approved the amended 2016 Equity Incentive Plan ("the 2016 Plan"), which reserved 13,404,404 shares of common stock for outstanding and future awards of stock options, restricted stock, and other awards to officers and key associates.
Our benefit plans allow for options to be granted as either non-qualified or incentive stock options. The options historically have been granted annually, or upon hire, as approved by the Compensation Committee of the Board of Directors. The options are granted with an exercise price equal to the market price of our common stock on the date of the grant, as approved by the Compensation Committee of the Board of Directors. The options are generally exercisable at a rate of 331/3% each year unless alternative vesting methods are approved by the Compensation Committee of the Board of Directors. Outstanding options will expire, if not exercised or forfeited, within eight years from the date of grant. Restricted shares are generally expensed ratably over the period during which the restrictions lapse, which is typically 331/3% each year. At December 31, 2023 and 2022, 3,470,575 and 4,090,978 shares, respectively, were reserved for future option and restricted share grants under our stock benefit plans.
We utilize the Black-Scholes option valuation model for estimating the fair value of our stock options. This model allows the use of a range of assumptions related to volatility, risk-free interest rate, expected holding period, and dividend yield. The expected volatility utilized in the valuation model is based on the historical volatility of our stock price. The dividend yield and expected holding period are based on historical experience and management’s estimate of future events. The risk-free interest rate is derived from the U.S. Treasury yield curve based on the expected life of the option in effect at the time of grant. The fair values of our stock options are calculated using the following weighted average assumptions, based on the methods described above:
Years Ended December 31,
Assumptions202320222021
Dividend yield1.6%1.5%1.8%
Expected volatility25.4%23.9%23.5%
Risk-free interest rate4.0%1.8%0.4%
Expected holding period (years)4.54.04.0
The following table summarizes certain information with respect to stock option and restricted share compensation included in our Consolidated Statement of Operations:
Years Ended December 31,
 202320222021
 (In thousands)
Total pretax employee share-based compensation expense included in net income$15,423 $14,709 $14,168 
Income tax benefit related to share-based compensation included in net income$3,822 $3,877 $3,537 
Stock Options
The following table sets forth stock option activity for the year ended December 31, 2023 (shares reported in whole numbers):
OptionsWeighted-Average
Exercise Price
Outstanding at December 31, 2022
5,461,105 $40.47 
Granted371,700 $70.34 
Exercised(926,610)$26.10 
Outstanding at December 31, 2023
4,906,195 $45.44 
Exercisable at December 31, 2023
3,989,812 $41.68 
The aggregate intrinsic value for stock options outstanding and exercisable was $113.6 million and $106.8 million, respectively, at December 31, 2023.
Set forth below is certain information related to stock options outstanding and exercisable at December 31, 2023 (shares reported in whole numbers):
 Options OutstandingOptions Exercisable
Range of Exercise Price
Number
Outstanding at
December 31, 2023
Weighted-Average Remaining Contractual Life
(in years)		Weighted-
Average Exercise Price
Number
Exercisable at
December 31, 2023
Weighted-
Average Exercise Price
$0.00 — 25.0055,320 0.1$22.28 55,320 $22.28 
$25.01 — 35.00894,450 1.1$29.25 894,450 $29.25 
$35.01 — 45.001,519,695 2.6$39.65 1,519,695 $39.65 
$45.01 — 55.001,506,810 4.6$50.31 1,308,944 $50.42 
$55.01 — 65.00558,220 6.1$59.76 211,403 $59.76 
$65.01 — 75.00371,700 7.1$70.34 — $— 
$0.00 — 75.004,906,195 3.6$45.44 3,989,812 $41.68 
Other information pertaining to stock options was as follows (in thousands, except weighted-average grant date fair value):
Years Ended December 31,
202320222021
Weighted average grant-date fair value of stock options granted$16.86 $11.02 $7.50 
Total fair value of stock options vested$6,059 $5,538 $5,708 
Total intrinsic value of stock options exercised$37,115 $42,700 $59,180 
Cash received from the exercise of stock options
$24,181 $27,814 $39,354 
Recognized compensation expense
$5,929 $5,738 $5,514 
As of December 31, 2023, the unrecognized compensation expense related to stock options of $6.8 million is expected to be recognized over a weighted average period of 1.8 years.
Restricted Shares
The fair value of our restricted share awards and units, as determined on the grant date, is being amortized and charged to income (with an offsetting credit to Capital in excess of par value) generally over the average period during which the restrictions lapse.
Restricted share award activity was as follows (share awards reported in whole numbers):
Restricted
Share Awards		Weighted-Average
Grant-Date
Fair Value
Nonvested restricted share awards at December 31, 2022
212,115 $54.66 
Granted89,484 $70.34 
Vested(114,826)$53.38 
Nonvested restricted share awards at December 31, 2023
186,773 $62.95 
Other information pertaining to restricted share awards was as follows (in thousands, except weighted-average grant date fair value):
Years Ended December 31,
202320222021
Recognized compensation expense related to restricted share awards
$6,128 $5,739 $5,647 
Weighted-average grant date fair value for nonvested restricted stock granted
$70.34 $59.76 $49.59 
Total fair market value of restricted share awards vested
$6,130 $5,639 $5,496 
Aggregate intrinsic value of restricted share awards vested
$1,715 $2,552 $3,513 
At December 31, 2023, unrecognized compensation expense of $7.0 million related to restricted share awards is expected to be recognized over a weighted average period of 1.8 years.