The Company's Long-Term Incentive Program (“LTIP”) provides employees with an award of stock options and grants of restricted stock units (“RSUs”), and grants of performance share units ("PSUs") to members of the Company's Executive Leadership

Team ("ELT"). Awards are granted in the first quarter of each year. The Company recognizes the grant-date fair value for each of these awards, less estimated forfeitures, as compensation expense ratably over the vesting period. For employees and directors that meet retirement eligibility requirements, the expense related to share-based compensation is recognized on the date of grant as there is no future service period required for the awards to vest.

The following table provides a summary of option activity:


						Weighted
						Average
				Weighted		Remaining
				Average		Contractual		Aggregate
				Exercise		Term		Intrinsic
	Options			Price (per share)		(in Years)		Value
Outstanding at December 31, 2024		8.4		$	77.10
Granted		1.0			110.70
Exercised		(0.4	)		57.01
Cancelled		(0.1	)		94.46
Outstanding at June 30, 2025		8.9		$	81.65		6.1	$	148.3
Exercisable at June 30, 2025		6.0		$	73.41		4.8	$	136.0

The following table provides information regarding the intrinsic value of stock options exercised and stock compensation expense related to stock option awards:


	Three Months Ended				Six Months Ended
	June 30,		June 30,		June 30,		June 30,
	2025		2024		2025		2024
Intrinsic Value of Stock Options Exercised	$	4.4	$	12.5	$	20.7	$	81.3
Stock Compensation Expense Related to Stock Option Awards	$	4.9	$	4.0	$	18.0	$	20.5
Issued Stock Options		0.0		0.0		1.0		1.0
Weighted Average Fair Value of Stock Options issued (per share)	$	0.0	$	0.0	$	33.05	$	29.90
Fair Value of Stock Options Issued	$	0.0	$	0.0	$	34.2	$	30.8

The following table provides a summary of the assumptions used in the valuation of issued stock options:


	Three Months Ended		Six Months Ended
	June 30,	June 30,	June 30,			June 30,
	2025	2024	2025			2024
Risk-free interest rate	N/A	N/A		4.2	%		4.2	%
Expected life in years	N/A	N/A		7.0			7.2
Expected volatility	N/A	N/A		22.6	%		22.3	%
Dividend yield	N/A	N/A		1.1	%		1.1	%

The Company granted employees 138,080 RSUs with a total fair value of $14.6 at a weighted average grant date fair value of $105.49 per RSU during the six months ended June 30, 2025 and granted employees 100,050 RSUs with a total fair value of $10.2 at a weighted average grant date fair value of $101.88 per RSU during the six months ended June 30, 2024. The annual RSU grants vest in one-third increments on each of the first, second and third anniversaries of the grant date, subject to the recipient’s continued employment with the Company from the grant date through the applicable vesting date, and are settled with shares of the Company’s Common Stock within 60 days following the applicable vesting date.

Additionally, in connection with the Hero Acquisition (see Note 10), 854,882 shares of restricted stock were issued to certain individuals in October 2022 with a total fair value of $61.5. This restricted stock is recognized as compensation expense ratably over the vesting period if those individuals continue to be employed by the Company. The vesting requirements are satisfied at various dates over a three-year period from the date of the acquisition, including 641,157 shares which have vested as of June 30, 2025, and

the final 213,725 shares vesting in October of 2025. The restricted stock expense associated with the Hero Acquisition for the six months ended June 30, 2025 and 2024 was $4.4 and $12.5, respectively, and is included in the non-cash compensation expense caption in the condensed consolidated statement of cash flows.

In the first quarter of each of 2025 and 2024, respectively, the Company granted PSUs to members of the ELT including the CEO, with an aggregate award of 18,140 and 19,960 PSUs, respectively. The PSUs were valued at a weighted average grant date fair value equal to $136.76 in 2025 and $122.24 in 2024 per PSU using a Monte Carlo model. The performance target is based on the Company’s total shareholder return (“TSR”) relative to a Company selected peer group. The PSUs vest on the later of (i) the third anniversary of the grant date, and (ii) the date that the Board's Compensation & Human Capital Committee certifies the achievement of the applicable performance goals, in each case, subject to the recipient’s continued employment with the Company from the grant date through the vesting date. The number of shares that may be issued ranges from 0% to 200% based on relative TSR during the three-year performance period.

The Company’s discounted Employee Stock Purchase Plan (“ESPP”) was adopted in February 2023 by the Company’s Board of Directors and became effective in April 2023 upon approval by the Company’s stockholders. There are 750,000 shares of Common Stock reserved for issuance under the ESPP. The ESPP, which is intended to be an “employee stock purchase plan” under Section 423 of the Internal Revenue Code, permits eligible employees to purchase Common Stock through after-tax payroll deductions. Currently, the purchase price under the ESPP is 85% of the fair market value of our Common Stock on the last trading day of the applicable quarterly purchase period. The maximum value of Common Stock that an eligible employee may purchase each calendar year is the lesser of 10% of an eligible employee’s annual pay and $25,000. There are four purchase periods in each calendar year under the ESPP, which begin on the first business day of each calendar quarter and end on the last business day of each calendar quarter. The first purchase period commenced in January 2025. There are 708,643 Common Shares remaining on June 30, 2025 that are reserved for issuance under the ESPP.