Company: NPO
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0001164863-25-000009
Chunk: 296

Company: Enpro Inc.
Filing Date: 2025-02-21
Form: 10-K
Item: Item 1A
Chunk 296
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 $80.0025,724 25,724 $53.78 5.16Over $80.00 and under $100.0041,182 41,182 $80.88 6.19Over $100.00 and under $120.00103,981 55,658 $108.39 7.59Over $120.00 and under $140.002,908 968 $120.79 8.83Over $140.0038,073 — $156.20 9.16Total211,868 123,532 $105.17 7.32We determine the fair value of stock options using the Black-Scholes option pricing formula. Key inputs into this formula include expected term, expected volatility, expected dividend yield, and the risk-free interest rate. We use the closing stock price on the grant date for determining the fair value. This fair value is amortized on a straight line basis over the vesting period.  All options issued vest in equal annual increments over three years with the exception of options granted on November 26, 2021 that vest equally at the end of one quarter years, one and one quarter years, and two and one quarter years. 

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The expected term represents the period that our stock options are expected to be outstanding, and is determined based on historical experience of similar awards, given the contractual terms of the awards, vesting schedules, and expectations of future employee behavior. The fair value of stock options reflects a volatility factor calculated using historical market data for Enpro's common stock. The dividend assumption is based on our current expectations for our dividend policy. We base the risk-free interest rate on the yield to maturity at the time of the stock option grant on zero-coupon U.S. government bonds having a remaining life equal to the option's expected life. The following assumptions were used to estimate the indicated fair value of the 2024 option awards:Grant DateFebruary 15, 2024February 27, 2024Fair-value at grant date (per share)$66.29 $66.84 Assumptions:Average expected term6 years6 yearsExpected volatility40.58 %40.61 %Risk-free interest rate4.24 %4.33 %Expected dividend yield0.77 %0.77 %The following assumptions were used to estimate the indicated fair value of the 2023 option awards:Grant DateFebruary 16,