XML 63 R42.htm IDEA: XBRL DOCUMENT v3.24.0.1
Employee Benefit Plans (Tables)
12 Months Ended
Dec. 31, 2023
Compensation Related Costs [Abstract]  
Schedule of Accumulated and Projected Benefit Obligations
The funded status of the Company's pension plan is reflected below.
Years Ended December 31:202320222021
Projected benefit obligation at beginning of year$452.8 $604.6 $639.7 
Increases (decreases) during the year attributable to:
Interest cost23.4 16.4 15.2 
Actuarial (gains) losses10.9 (138.7)(22.2)
Benefits paid(30.7)(29.5)(28.0)
Net increase (decrease) for the year3.6 (151.8)(35.1)
Projected benefit obligation at end of year$456.4 $452.8 $604.6 
Schedule of Changes in Fair Value of Plan Assets
Years Ended December 31:202320222021
Fair value of net assets available for plan benefits
At beginning of the year$507.1 $556.0 $479.6 
Increases (decreases) during the year attributable to:
Actual return on plan assets44.2 (19.2)104.4 
Benefits paid(30.7)(29.5)(28.0)
Net increase (decrease) for year13.4 (48.8)76.3 
Fair value of net assets available for plan benefits
At end of the year$520.6 $507.1 $556.0 
Schedule of Net Funded Status [Table Text Block]
Funded status$64.1 $54.3 $(48.6)
Amounts recognized in accumulated other comprehensive income$(27.8)$(38.5)$(123.2)
Schedule of Assumptions Used
The projected benefit obligation and net periodic benefit cost for the Plan were determined using the following weighted-average assumptions:
Projected Benefit ObligationNet Periodic Benefit Cost
As of December 31:20232022202320222021
Settlement discount rates5.15 %5.40 %5.40 %2.80 %2.45 %
Long-term rates of return on plan assetsN/AN/A4.60 %7.00 %7.00 %
Schedule of Weighted Average Asset Allocations Of Benefit Plans The weighted-average asset allocations of the Plan were as follows:
Current Investment Policy Asset Allocation % Range Target
As of December 31:20232022
Equity securities:
Common shares of Company stock16.0 %13.5 %
Other— 38.9 
Subtotal
16.0 52.4 
0% to 25%
Fixed income securities78.1 44.4 
75% to 100%
Other5.9 3.2    1% to 10%
Total100.0 %100.0 %
Schedule of Allocation of Plan Assets
The following tables present a summary of the Plan's assets segregated among the various input levels described in Note 3.
Fair Value Measurements
As of December 31, 2023:Level 1Level 2Level 3Total
Equity securities: Company stock
$83.1 $— $— $83.1 
Fixed income securities3.7 402.7 — 406.5 
Other17.0 — 7.3 24.3 
Total at fair value$103.9 $402.7 $7.3 514.0 
Securities at net asset value6.5 
Total$520.6 
As of December 31, 2022:
Equity securities:
Common shares of Company stock$68.3 $— $— $68.3 
Other197.5 — — 197.5 
Subtotal
265.8 — — 265.8 
Fixed income securities— 225.0 — 225.0 
Other7.1 — 5.9 13.0 
Total at fair value$273.0 $225.0 $5.9 504.0 
Securities at net asset value3.1 
Total$507.1 
Schedule of Expected Benefit Payments
The following table presents a summary of the benefits expected to be paid as of December 31, 2023 for the next 10 years:

202420252026202720282029 and after
December 31, 2023$33.7 $34.3 $34.9 $34.6 $34.6 $169.4 
Schedule of Stock Based Compensation and Tax Benefit
Years Ended December 31:202320222021
Stock-based compensation expense
$19.5 $9.0 $3.2 
Income tax benefit$4.1 $1.8 $0.6 
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions
The following table presents the key assumptions used to value the option awards granted during the periods presented. Expected volatilities are based on the historical experience of Old Republic's common stock. The expected term of stock options represents the period of time that stock options granted are assumed to be outstanding. The Company uses historical data to estimate the effect of stock option exercise and employee departure behavior; groups of employees that have similar historical behavior are considered separately for valuation purposes. The risk-free rate of return for periods within the contractual term of the share option is based on the U.S. Treasury rate in effect at the time of the grant.
202320222021
Expected volatility0.23 0.22 0.20 
Expected dividends4.66 %4.32 %4.76 %
Expected term (in years)667
Risk-free rate3.69 %2.68 %1.21 %
Schedule of Share-based Compensation, Stock Options, Activity
A summary of stock option activity under the 2022 and 2016 Incentive Plans as of December 31, 2023, 2022, and 2021, and changes in outstanding options during the years then ended is presented below:
As of and for the Years Ended December 31,
202320222021
SharesWeighted
Average
Exercise
Price
SharesWeighted
Average
Exercise
Price
SharesWeighted
Average
Exercise
Price
Outstanding at beginning of year9,619,004 $20.68 8,344,470$19.57 9,494,651 $18.36 
Granted2,990,000 25.22 2,660,00023.28 2,216,250 21.30 
Exercised1,694,106 19.49 1,285,78318.94 3,259,273 17.28 
Forfeited and expired44,684 22.04 99,68319.78 107,158 18.32 
Outstanding at end of year10,870,214 22.10 9,619,00420.68 8,344,470 19.57 
Exercisable at end of year4,790,571 $20.31 4,562,063$19.53 4,652,951 $19.22 
Weighted average fair value of
    options granted during the year (a)$3.76 per share$3.31 per share$1.86 per share
__________

(a)    Based on the Black-Scholes-Merton option pricing model and the assumptions outlined above.
Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding
A summary of stock options outstanding and exercisable at December 31, 2023 follows:
Options OutstandingOptions Exercisable
Weighted Average
Weighted
Average
Exercise
Price
Exercise PricesYear of GrantNumber
Outstanding
Remaining
Contractual
Life
Exercise
Price
Number
Exercisable
$16.06201474,788 0.25$16.06 74,788 $16.06 
$15.262015123,061 1.2515.26 123,061 15.26 
$18.142016252,893 2.2518.14 252,893 18.14 
$19.982017407,633 3.2519.98 407,633 19.98 
$20.982018573,174 4.2520.98 573,174 20.98 
$21.12to$21.992019973,628 5.2521.16 973,628 21.16 
$16.17to$22.7220201,295,913 6.2517.45 878,634 17.50 
$21.3020211,761,193 7.2521.30 829,759 21.30 
$22.92to$24.4920222,429,431 8.2523.30 677,001 23.33 
$24.31to$25.5220232,978,500 9.2525.22 — — 
Total10,870,214 $22.10 4,790,571 $20.31 
Schedule of Cash Proceeds Received from Share-based Payment Awards
The cash received from stock option exercises, the total intrinsic value of stock options exercised, and the actual tax benefit realized for the tax deductions from option exercises are as follows:
202320222021
Cash received from stock option exercise$33.0 $24.3 $56.3 
Intrinsic value of stock options exercised17.5 7.9 24.2 
Actual tax benefit realized for tax deductions
from stock options exercised
$3.6 $1.6 $5.0 
Share-based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity
A summary of restricted stock activity under the 2022 Incentive Plan as of December 31, 2023 and 2022, and changes in outstanding restricted stock awards during the years then ended is presented below:
As of and for the Year Ended December 31,
20232022
WeightedWeighted
AverageAverage
Grant DateGrant Date
SharesFair ValueSharesFair Value
Nonvested at beginning of year659,874$23.70 33,539$21.32 
Granted823,90725.15 644,35623.76 
Vested(225,289)23.60 (16,901)21.20 
Forfeited(1,376)25.05 (1,120)22.34 
Nonvested at end of year1,257,116$24.67 659,874$23.70 
Schedule of Profit Sharing and Other Incentive Compensation Programs
The Company has a number of profit sharing and other incentive compensation programs for the benefit of a substantial number of its employees. The costs related to such programs are summarized below:
Years Ended December 31:202320222021
ORI 401(k) Savings and Profit Sharing Plan$65.8 $77.8 $70.5 
Cash, deferred and other incentive compensation$81.2 $70.3 $71.8