Share-Based Compensation (Tables)
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6 Months Ended |
Jun. 30, 2026 |
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| Share-Based Payment Arrangement [Abstract] |
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| Schedule of Weighted Average Option Fair Values and Assumptions |
The assumptions used in determining the fair value of the stock options granted in the respective periods were as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended June 30, | | Six Months Ended June 30, | | | 2026 | | 2025 | | 2026 | | 2025 | | Weighted average fair value of grants | $45.91 | | n/a | | $49.13 | | $46.74 | | Dividend yield | 1.49% | | n/a | | 1.37% | | 1.41% | | Volatility | 23.98% | | n/a | | 23.81% | | 23.06% | | Risk-free interest rate | 3.94% | | n/a | | 3.61% | | 4.28% | | Expected life (in years) | 4.90 | | n/a | | 4.90 | | 4.70 |
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| Schedule of Stock Option Activity |
A summary of the Company’s stock option activity as of June 30, 2026 and changes during the six months ended June 30, 2026 are presented in the following table: | | | | | | | | | | | | | | | | | | | | | | | | | Stock Options | Shares | | Weighted
Average
Exercise Price | | Weighted-Average
Remaining
Contractual Term (years) | | Aggregate
Intrinsic
Value | | Outstanding at January 1, 2026 | 954,201 | | | $ | 192.03 | | | 5.82 | | $ | 8.9 | | | Granted | 86,575 | | | 207.43 | | | | | | | Exercised | (80,632) | | | 148.18 | | | | | | | Forfeited | (29,849) | | | 222.13 | | | | | | | Outstanding at June 30, 2026 | 930,295 | | | $ | 196.30 | | | 5.86 | | $ | 29.7 | | | Vested and expected to vest as of June 30, 2026 | 918,018 | | | $ | 196.06 | | | 5.82 | | $ | 29.5 | | | Exercisable at June 30, 2026 | 699,529 | | | $ | 190.02 | | | 5.00 | | $ | 26.4 | |
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| Schedule of Restricted Stock Activity |
A summary of the Company’s restricted stock activity as of June 30, 2026 and changes during the six months ended June 30, 2026 are presented in the following table: | | | | | | | | | | | | | Restricted Stock | Shares | | Weighted-Average
Grant Date Fair
Value | | Unvested at January 1, 2026 | 190,822 | | | $ | 198.64 | | | Granted | 97,180 | | | 203.24 | | | Vested | (25,025) | | | 210.50 | | | Forfeited | (18,588) | | | 202.22 | | | Unvested at June 30, 2026 | 244,389 | | | $ | 198.98 | |
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| Schedule of Unvested Cash-settled Restricted Stock Activity |
A summary of the Company’s unvested cash-settled restricted stock activity as of June 30, 2026 and changes during the six months ended June 30, 2026 are presented in the following table: | | | | | | | | | | | | | Cash-Settled Restricted Stock | Shares | | Weighted-Average
Fair Value | | Unvested at January 1, 2026 | 62,292 | | | $ | 177.94 | | | Granted | 31,360 | | | 207.71 | | | Vested | (14,365) | | | 206.67 | | | Forfeited | (3,785) | | | 226.95 | | | Unvested at June 30, 2026 | 75,502 | | | $ | 226.95 | |
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| Schedule of Weighted Average Performance Share Units Fair Values and Assumptions |
The assumptions used in the Monte Carlo simulation model to determine the fair value of the market condition portion of the performance share units granted in the respective periods were as follows: | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended June 30, | Six Months Ended June 30, | | 2026 | | 2025 | 2026 | | 2025 | | Weighted average fair value of grants | $250.95 | | n/a | $274.15 | | $232.44 | | Dividend yield | —% | | n/a | —% | | —% | | Volatility | 24.28% | | n/a | 24.07% | | 22.93% | | Risk-free interest rate | 3.84% | | n/a | 3.47% | | 4.23% | | Expected life (in years) | 2.82 | | n/a | 2.94 | | 2.94 |
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| Schedule of Performance Shares Units Activity |
A summary of the Company’s performance share unit activity as of June 30, 2026 and changes during the six months ended June 30, 2026 are presented in the following table: | | | | | | | | | | | | | Performance Share Units | Shares | | Weighted-Average
Grant Date Fair
Value | | Unvested at January 1, 2026 | 78,205 | | | $ | 267.78 | | | Granted | 41,030 | | | 252.58 | | | Vested | — | | | n/a | | Forfeited | (25,485) | | | 301.18 | | | Unvested at June 30, 2026 | 93,750 | | | $ | 259.10 | |
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| Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs |
Total compensation cost related to all share-based awards was as follows: | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended June 30, | | Six Months Ended June 30, | | 2026 | | 2025 | | 2026 | | 2025 | | Stock options expense | $ | 0.6 | | | $ | 1.1 | | | $ | 3.7 | | | $ | 4.3 | | | Restricted stock expense | 4.5 | | | 3.3 | | | 11.0 | | | 8.8 | | Cash-settled restricted stock expense | 2.1 | | | 0.6 | | | 4.3 | | | 1.2 | | Performance share units expense | 1.0 | | | 0.8 | | | 7.2 | | | 5.7 | Total pre-tax share-based compensation expense(1) | 8.2 | | | 5.8 | | | 26.2 | | | 20.0 | | Income tax benefit | (1.1) | | | (1.2) | | | (2.4) | | | (2.4) | | | Total share-based compensation expense, net of income taxes | $ | 7.1 | | | $ | 4.6 | | | $ | 23.8 | | | $ | 17.6 | |
(1) Pre-tax compensation cost is recognized in the Condensed Consolidated Statements of Income depending on the functional area of the underlying employees, as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended June 30, | | Six Months Ended June 30, | | 2026 | | 2025 | | 2026 | | 2025 | | Cost of sales | $ | 0.7 | | | $ | 0.3 | | | $ | 1.8 | | | $ | 1.1 | | | Selling, general and administrative expenses | 7.5 | | | 5.5 | | | 24.4 | | | 19.5 | Restructuring expenses and asset impairments(2) | — | | | — | | | — | | | (0.6) | | | Total pre-tax share-based compensation expense | $ | 8.2 | | | $ | 5.8 | | | $ | 26.2 | | | $ | 20.0 | |
(2) During the six months ended June 30, 2025, a benefit of $0.6 million was recognized in Restructuring expenses and asset impairments in the Condensed Consolidated Statements of Income related to forfeitures of share-based compensation awards resulting from restructuring actions initiated during the first quarter of 2025.
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