v3.26.1
Share-based Compensation
6 Months Ended
Jun. 30, 2026
Share-Based Payment Arrangement, Noncash Expense [Abstract]  
Share-based Compensation

Note 10. Share-based Compensation

Total share-based compensation expense was $9.3 million and $7.5 million for the three months ended June 30, 2026 and 2025, respectively, and $15.7 million and $13.5 million for the six months ended June 30, 2026 and 2025, respectively. The income tax benefit related to share-based compensation expense was $2.5 million and $2.0 million for the three months ended June 30, 2026 and 2025, respectively, and $4.7 million and $4.3 million for the six months ended June 30, 2026 and 2025, respectively. As of June 30, 2026, $56.8 million of total unrecognized share-based compensation expense is expected to be recognized over a weighted-average period of 2.1 years.

Restricted Stock Units

RSUs outstanding as of June 30, 2026 and December 31, 2025, and changes during the six months ended June 30, 2026, were as follows:

 

 

Shares (thousands)

 

 

Weighted-Average Grant Date Fair Value

 

Nonvested at December 31, 2025

 

 

654

 

 

$

48.58

 

Granted

 

 

467

 

 

 

49.73

 

Vested

 

 

(279

)

 

 

50.43

 

Forfeited

 

 

(21

)

 

 

51.91

 

Nonvested at June 30, 2026

 

 

821

 

 

$

48.52

 

As of June 30, 2026, $28.6 million of unrecognized share-based compensation expense related to RSUs is expected to be recognized over a weighted-average period of 2.2 years.

Performance Share Units

PSUs include a market condition related to the Company’s stock price performance relative to a peer group, or relative total shareholder return (“TSR”) modifier, which can affect the number of shares ultimately issued to grantees at the end of the three-year performance period. The grant-date fair value of the PSUs is determined based on a Monte Carlo valuation model. The total potential payout for the PSUs is payable upon the achievement of certain established performance targets and can also be impacted by the TSR modifier.

PSUs outstanding as of June 30, 2026 and December 31, 2025, and changes during the six months ended June 30, 2026, were as follows:

 

 

Shares (thousands)

 

 

Weighted-Average Grant Date Fair Value

 

Nonvested at December 31, 2025

 

 

785

 

 

$

54.24

 

Granted

 

 

485

 

 

 

54.11

 

Vested

 

 

(328

)

 

 

41.85

 

Forfeited

 

 

(4

)

 

 

41.85

 

Nonvested at June 30, 2026

 

 

938

 

 

$

58.55

 

During the six months ended June 30, 2026, 485 thousand PSUs were granted to certain executive officers and senior management, 412 thousand of which related to the 2026 performance grant and 73 thousand of which related to additional shares issued due to the achievement of certain targets associated with the 2023 PSUs.

Year Granted

 

Performance /
Service Period
(a)

 

Estimated or Actual Attainment (b)

 

PSUs Outstanding as of June 30, 2026
(thousands)

 

 

Estimated PSU Attainment or Actual PSUs Earned
(thousands)

 

2026

 

2026

 

57% (c)

 

 

41

 

 

 

23

 

2026

 

2027

 

(d)

 

 

41

 

 

 

 

2026

 

2028

 

(d)

 

 

41

 

 

 

 

2026

 

2026-2028

 

100% (e)

 

 

82

 

 

 

82

 

2026

 

2026-2028

 

100% (e)

 

 

207

 

 

 

207

 

 

 

 

 

 

 

 

412

 

 

 

312

 

 

 

 

 

 

 

 

 

 

 

 

2025

 

2025

 

61% (f)

 

 

30

 

 

 

18

 

2025

 

2026

 

52% (c)

 

 

30

 

 

 

16

 

2025

 

2027

 

(d)

 

 

30

 

 

 

 

2025

 

2025-2027

 

100% (e)

 

 

60

 

 

 

60

 

2025

 

2025-2027

 

100% (e)

 

 

150

 

 

 

150

 

 

 

 

 

 

 

 

300

 

 

 

244

 

 

 

 

 

 

 

 

 

 

 

 

2024

 

2024

 

66% (f)

 

 

23

 

 

 

15

 

2024

 

2025

 

0% (f)

 

 

23

 

 

 

 

2024

 

2026

 

50% (c)

 

 

23

 

 

 

12

 

2024

 

2024-2026

 

0% (c)

 

 

45

 

 

 

 

2024

 

2024-2026

 

200% (c)

 

 

112

 

 

 

224

 

 

 

 

 

 

 

 

226

 

 

 

251

 

 

(a)
PSUs contain five performance periods, including three annual performance periods and two three-year cumulative performance periods.
(b)
Attainment percentage does not include the TSR modifier that is determined at the end of the three-year cumulative performance period and applied to PSUs that are earned based on the achievement of the service and performance conditions.
(c)
Amounts represent estimated attainment and estimated PSUs.
(d)
As the performance period has not yet commenced, expense is not being recognized.
(e)
Expense for the cumulative performance/service period is recognized at 100% of the estimated attainment until the attainment expected by the end of the cumulative three-year performance period can be estimated, which generally occurs at the end of the second service year.
(f)
Amounts represent actual attainment and actual PSUs earned as the performance period is complete.

As of June 30, 2026, $28.2 million of unrecognized share-based compensation expense related to PSUs is expected to be recognized over a weighted-average period of 2.0 years.