Share-Based Compensation

12 Months Ended

Dec. 31, 2023

Share-Based Payment Arrangement [Abstract]

Compensation cost included in income from continuing operations, primarily selling, general and administrative expense, and the income tax benefit recognized for our share-based compensation arrangements is included below:


	Years Ended December 31,
	2023		2022		2021
	(In thousands)
Total share-based compensation cost	$	21,024	$	23,454	$	22,627
Income tax benefit	5,004		5,582		5,385

We currently have outstanding stock appreciation rights (SARs), restricted stock units with service vesting conditions, restricted stock units with performance vesting conditions, and restricted stock units with market conditions. We grant SARs with an exercise price equal to the closing market price of our common stock on the grant date. Generally, SARs may be converted into shares of our common stock in equal amounts on each of the first three anniversaries of the grant date and expire 10 years from the grant date. Certain awards provide for accelerated vesting in certain circumstances, including following a change in control of the Company. Restricted stock units with service conditions generally vest 3-5 years from the grant date. Restricted stock units issued based on the attainment of the performance conditions generally vest on the second or third anniversary of their grant date. Restricted stock units issued based on the attainment of market conditions generally vest on the third anniversary of their grant date.

We recognize compensation cost for all awards based on their fair values. The fair values for SARs are estimated on the grant date using the Black-Scholes-Merton option-pricing formula which incorporates the assumptions noted in the following table. Expected volatility is based on historical volatility, and expected term is based on historical exercise patterns of SAR holders. The fair value of restricted stock units with service vesting conditions or performance vesting conditions is the closing market price of our common stock on the date of grant. We estimate the fair value of certain restricted stock units with market conditions using a Monte Carlo simulation valuation model with the assistance of a third party valuation firm. Compensation costs for awards with service conditions are amortized to expense using the straight-line method. Compensation costs for awards with performance conditions and graded vesting are amortized to expense using the graded attribution method.


	Years Ended December 31,
	2023			2022			2021
	(In thousands, except weighted average fair value and assumptions)
Weighted-average fair value of SARs granted	$	39.44		$	21.85		$	18.30
Total intrinsic value of SARs exercised	12,229			4,384			1,581
Tax benefit from SARs exercised	660			678			327
Weighted-average fair value of restricted stock units granted	95.32			61.61			51.76
Total fair value of restricted stock units vested	19,821			16,830			12,623
Expected volatility	43.45		%	43.00		%	45.34		%
Expected term (in years)	5.7			5.6			5.7
Risk-free rate	4.26		%	1.89		%	0.70		%
Dividend yield	0.23		%	0.37		%	0.44		%


	SARs						Restricted Stock Units
	Number	Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term	Aggregate Intrinsic Value		Number	Weighted- Average Grant-Date Fair Value
	(In thousands, except exercise prices, fair values, and contractual terms)




Outstanding at January 1, 2023	958	$	64.13	4.8	$	10,017	897	$	54.59
Granted	115	85.77					410	95.32
Exercised or converted	(576)	67.85					(398)	49.77
Forfeited or expired	(84)	63.97					(210)	59.98
Outstanding at December 31, 2023	413	$	64.97	6.6	$	6,220	699	$	71.95

Exercisable or convertible at December 31, 2023	213	$	61.16	4.8	$	3,684

At December 31, 2023, the total unrecognized compensation cost related to all nonvested awards was $31.5 million. That cost is expected to be recognized over a weighted-average period of 2.0 years. Historically, we have issued treasury shares, if available, to satisfy award conversions and exercises.