STOCK INCENTIVE PLAN AND OTHER EQUITY ACTIVITY


13.			STOCK INCENTIVE PLAN AND OTHER EQUITY ACTIVITY

General—The Company has a stock incentive plan (the “Stock Incentive Plan”) and an employee stock purchase plan (the “ESPP”) that are administered by the Compensation and Talent Development Committee of the Board of Directors. Under the Stock Incentive Plan, the Company can issue shares to employees and directors in the form of restricted stock awards (“RSAs”), restricted stock units (“RSUs”) and performance share units (“PSUs”). Changes in common stock and additional paid in capital during the six months ended June 30, 2026 primarily relate to activity associated with the Stock Incentive Plan, the ESPP, shares withheld for taxes and repurchases of the Company’s common stock.

Share Grants—During the six months ended June 30, 2026, the Company granted the following awards under the Stock Incentive Plan:


(In thousands, except per share data)	Shares	Weighted Average Grant-Date Fair Value per Share
RSAs	1	$	886.22
RSUs	60	$	600.32
PSUs – EPS Based (at target)	17	$	306.23
PSUs – Market Based	5	$	428.56

Total shares granted	83

Share Issuances—During the six months ended June 30, 2026, the Company issued the following shares under the Stock Incentive Plan and the ESPP:


(In thousands)						Shares
RSAs (issued upon grant)						1
RSUs (issued upon vesting)						13
PSUs – EPS Based (issued upon vesting)						56

ESPP (issued upon sale)						3
Total shares issued						73

Stock-Based Compensation—The Company recognized $7.9 million and $15.2 million of stock-based compensation expense during the three and six months ended June 30, 2026, respectively. The Company recognized $5.2 million and $11.6 million of stock-based compensation expense during the three and six months ended June 30, 2025, respectively. ESPP expense, which is included in the total stock-based compensation expense, was $150 thousand and $289 thousand for the three and six months ended June 30, 2026, respectively, and $80 thousand and $167 thousand for the three and six months ended June 30, 2025, respectively. Additionally, the Company has liability-based PSUs for which the number of shares awarded is not determined until the vesting date. During the three months ended June 30, 2026 and 2025, the Company recognized $207 thousand and $348 thousand, respectively, as a liability and compensation expense. During the six months ended June 30, 2026 and 2025, the Company recognized $413 thousand and $687 thousand, respectively, as a liability and compensation expense, and upon vesting, reclassified the grant date fair value of $732 thousand and $632 thousand, respectively, from a liability to additional paid in capital. Stock-based compensation expense is primarily recognized within general and administrative expense. The Company recognizes forfeitures as they occur, rather than estimating expected forfeitures.

Shares Withheld for Taxes—The Company withheld 2 thousand and 26 thousand shares for taxes on the vesting of employee stock-based compensation for $1.2 million and $11.9 million during the three and six months ended June 30, 2026.

Treasury Stock—Effective November 12, 2025, the Board of Directors authorized a stock repurchase program, permitting the repurchase of up to $400 million of the Company’s outstanding common stock. The stock repurchase program expires on November 12, 2027 and may be modified, extended or terminated by the Board of Directors at any time. Under the program, the Company may repurchase its common stock in the open market or through privately negotiated transactions at such times and at such prices as determined to be in the Company’s best interest. The Company accounts for the repurchase of treasury shares under the cost method and during the three and six months ended June 30, 2026, the Company repurchased 29 thousand and 69 thousand shares, respectively, of its common stock for $23.0 million and $35.3 million, respectively.