Equity-Based Compensation

6 Months Ended

Jun. 30, 2025

Share-Based Payment Arrangement, Noncash Expense [Abstract]

NOTE 8. EQUITY-BASED COMPENSATION

We issue new shares of common stock to settle performance share awards (PSAs), restricted stock units (RSUs) and deferred compensation stock equivalent units. At June 30, 2025, approximately 1.2 million shares were available for future use under our stock incentive plans.

Share-based compensation activity during the six months ended June 30, 2025 included the following:


	Granted		Vested		Forfeited
Performance Share Awards (PSAs)		122,251		—		1,249
Restricted Stock Units (RSUs)		113,263		29,206		824

Approximately 0.1 million shares of common stock were issued to employees during the six months ended June 30, 2025, as a result of PSA and RSU vesting during 2024 and 2025.

The following table details compensation expense and the related income tax benefit for company specific equity-based awards:


	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2025		2024		2025		2024
Equity-based compensation expense:
Performance share awards	$	1,725	$	1,624	$	3,156	$	2,993
Restricted stock units		1,448		1,289		2,754		2,431
Deferred compensation stock equivalent units expense		22		49		44		98
Total equity-based compensation expense	$	3,195	$	2,962	$	5,954	$	5,522

Total tax benefit recognized for equity-based expense	$	207	$	198	$	389	$	357

Performance Share Awards

The weighted-average grant date fair value of PSAs granted during the six months ended June 30, 2025, was $66.00 per share. PSAs granted under the stock incentive plans have a three-year performance period and shares are issued after the end of the period if the performance measures are met. The number of shares actually issued, as a percentage of the amount subject to the PSA, could range from 0% to 200%. PSAs granted under the stock incentive plans do not have voting rights unless and until shares are issued upon settlement. If shares are issued at the end of the performance measurement period, the recipients will receive dividend equivalents in the form of additional shares of common stock at the date of settlement equal to the dividends that would have been paid on the shares earned had the recipients owned the shares during the three-year period. The share awards are not considered participating securities.

The following table presents the key inputs used in the Monte Carlo simulation to calculate the fair value of the performance share awards granted in 2025:


Stock price as of valuation date	$	45.19
Risk-free rate		4.18	%
Expected volatility		26.64	%
Expected dividend yield1		—
Expected term (years)		3.00

Full dividend reinvestment assumed.

Restricted Stock Units

The weighted-average fair value of all RSUs granted during the six months ended June 30, 2025, was $43.30 per share. The fair value of RSUs granted equaled our common share price on the date of grant factoring in any required post-vesting holding periods. The RSU awards granted accrue dividend equivalents based on dividends paid during the RSU vesting period. Recipients will receive dividend equivalents in the form of additional shares of common stock at the date the vested RSUs are settled. Any forfeited RSUs will not receive dividends. The share awards are not considered participating securities.