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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.

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.