Stock-Based Compensation (Tables)
|
12 Months Ended |
Dec. 31, 2024 |
|---|
| Share-Based Payment Arrangement [Abstract] |
|
| Schedule of Weighted Average Assumptions |
The weighted average assumptions for stock options granted and resulting fair value is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
|
2024 |
|
2023 |
|
2022 |
| Expected option term |
|
4.43 years |
|
4.39 years |
|
4.36 years |
| Expected stock price volatility |
|
26.39% |
|
27.37% |
|
25.38% |
| Risk-free interest rate |
|
4.34% |
|
4.03% |
|
1.72% |
| Expected annual dividend yield |
|
1.45% |
|
1.36% |
|
1.26% |
| Weighted average grant date fair value per stock option granted |
|
$20.86 |
|
$22.61 |
|
$18.33 |
|
| Summary of Stock Option Activity |
The following table summarizes stock option activity under the Plan:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of
Options |
|
Weighted
Average
Exercise
Price |
|
Weighted Average Remaining Contractual Life |
|
Aggregate Intrinsic Value (1)
(in thousands)
|
Outstanding as of December 31, 2023 |
|
2,280,014 |
|
|
$ |
87.08 |
|
|
|
|
|
| Granted |
|
156,277 |
|
|
82.55 |
|
|
|
|
|
| Exercised |
|
(94,391) |
|
|
64.84 |
|
|
|
|
|
| Forfeited or expired |
|
(195,252) |
|
|
90.24 |
|
|
|
|
|
Outstanding as of December 31, 2024 |
|
2,146,648 |
|
|
$ |
87.44 |
|
|
6.16 |
|
$ |
5,925 |
|
|
|
|
|
|
|
|
|
|
Vested and expected to vest as of December 31, 2024 |
|
2,104,270 |
|
|
$ |
87.46 |
|
|
6.11 |
|
$ |
5,886 |
|
Exercisable as of December 31, 2024 |
|
1,434,401 |
|
|
$ |
87.07 |
|
|
5.30 |
|
$ |
5,475 |
|
|
| Schedule of Share-Based Payment Award, Non-Option Equity Awards, Valuation Assumptions |
The weighted average assumptions for time-based RSUs granted and resulting fair value is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
|
2024 |
|
2023 |
|
2022 |
| Vesting period |
|
3.82 years |
|
3.78 years |
|
3.76 years |
| Expected annual dividend yield |
|
1.45% |
|
1.39% |
|
1.30% |
| Weighted average grant date fair value per time-based RSU granted |
|
$78.26 |
|
$82.37 |
|
$85.25 |
The weighted average assumptions for performance-based RSUs granted and resulting fair value is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
|
2024 |
|
2023 |
|
2022 |
| Vesting period |
|
2.82 years |
|
2.99 years |
|
2.87 years |
| Expected annual dividend yield |
|
1.50% |
|
1.36% |
|
1.35% |
Weighted average grant date fair value per performance-based RSU granted |
|
$76.54 |
|
$84.77 |
|
$85.64 |
The weighted average assumptions for market-based RSUs granted and resulting fair value is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
|
2024 |
|
2023 |
|
2022 |
| Vesting period |
|
2.82 years |
|
0 years |
|
0 years |
Weighted average grant date fair value per market-based RSU granted |
|
$89.25 |
|
$— |
|
$— |
|
| Share-Based Payment Arrangement, Performance Shares, Activity |
The following table summarizes the performance-based RSU activity under the Plan:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of Shares(1)
|
|
Weighted Average
Grant Date Fair Value
|
Outstanding as of December 31, 2023 |
|
23,374 |
|
|
$ |
85.18 |
|
| Granted |
|
30,533 |
|
|
76.54 |
|
Vested(2)
|
|
— |
|
|
— |
|
| Forfeited |
|
(2,028) |
|
|
83.73 |
|
Outstanding as of December 31, 2024 |
|
51,879 |
|
|
$ |
80.15 |
|
(1) Reflects activity at target level of awards and has not been adjusted for performance conditions, except for awards that vested during the period.
(2) The number of awards vested is net of shares withheld by the Company to pay up to maximum statutory requirements to taxing authorities on behalf of the employee. For the year ended December 31, 2024, the Company did not withhold any shares to satisfy employees' tax obligations since no awards vested.
The following table summarizes the market-based RSU activity under the Plan:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of Shares(1)
|
|
Weighted Average
Grant Date Fair Value
|
Outstanding as of December 31, 2023 |
|
— |
|
|
$ |
— |
|
| Granted |
|
26,613 |
|
|
89.25 |
|
Vested(2)
|
|
— |
|
|
— |
|
| Forfeited |
|
(340) |
|
|
89.25 |
|
Outstanding as of December 31, 2024 |
|
26,273 |
|
|
$ |
89.25 |
|
(1) Reflects activity at target level of awards and has not been adjusted for market conditions, except for awards that vested during the period. (2) The number of awards vested is net of shares withheld by the Company to pay up to maximum statutory requirements to taxing authorities on behalf of the employee. For the year ended December 31, 2024, the Company did not withhold any shares to satisfy employees' tax obligations since no awards vested.
|
| Schedule of Stock-Based Compensation Expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
| (in thousands) |
|
2024 |
|
2023 |
|
2022 |
Share-based compensation expense - equity awards |
|
$ |
24,777 |
|
|
$ |
23,051 |
|
|
$ |
21,021 |
|
Share-based compensation expense - liability awards |
|
390 |
|
|
— |
|
|
— |
|
Pre-tax share-based compensation expense |
|
25,167 |
|
|
23,051 |
|
|
21,021 |
|
| Income tax benefits |
|
(5,774) |
|
|
(5,365) |
|
|
(4,867) |
|
Total share-based compensation expense, net of tax |
|
$ |
19,393 |
|
|
$ |
17,686 |
|
|
$ |
16,154 |
|
|
| Summary of Restricted Stock Unit Activity |
The following table summarizes the time-based RSU activity under the Plan:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of
Shares
|
|
Weighted Average
Grant Date Fair Value
|
Outstanding as of December 31, 2023 |
|
455,641 |
|
|
$ |
84.77 |
|
| Granted |
|
369,353 |
|
|
78.26 |
|
Vested(1)
|
|
(177,341) |
|
|
84.25 |
|
| Forfeited |
|
(61,637) |
|
|
81.85 |
|
Outstanding as of December 31, 2024 |
|
586,016 |
|
|
$ |
81.13 |
|
(1) The number of awards vested is net of shares withheld by the Company to pay up to maximum statutory requirements to taxing authorities on behalf of the employee. For the year ended December 31, 2024, the Company withheld 59,877 to satisfy $4.9 million of employees' tax obligations for time-based RSUs.
|