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Stock Based Compensation Plans
 9 Months Ended
Sep. 30, 2016
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Stock Based Compensation Plans

6.

Stock Based Compensation Plans

The following table provides a summary of option activity during the nine months ended September 30, 2016:

 

 

 

 

 

 

 

 

 

 

Weighted

 

 

 

 

 

 

 

 

 

 

Weighted

 

 

Average

 

 

 

 

 

 

 

 

 

 

Average

 

 

Remaining

 

 

Aggregate

 

 

 

 

 

 

Exercise

 

 

Contractual

 

 

Intrinsic

 

 

Options

 

 

Price

 

 

Term

 

 

Value

 

Outstanding at December 31, 2015

 

17.2

 

 

$

25.89

 

 

 

 

 

 

 

 

 

Granted

 

2.0

 

 

 

46.75

 

 

 

 

 

 

 

 

 

Exercised

 

(2.8

)

 

 

16.68

 

 

 

 

 

 

 

 

 

Cancelled

 

(0.3

)

 

 

38.84

 

 

 

 

 

 

 

 

 

Outstanding at September 30, 2016

 

16.1

 

 

$

29.99

 

 

 

6.0

 

 

$

291.0

 

Exercisable at September 30, 2016

 

9.8

 

 

$

22.90

 

 

 

4.6

 

 

$

245.0

 

 

The following table provides information regarding the intrinsic value of stock options exercised and stock compensation expense related to stock option awards.  

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

September 30,

 

 

September 30,

 

 

September 30,

 

 

September 30,

 

 

2016

 

 

2015

 

 

2016

 

 

2015

 

Intrinsic Value of Stock Options Exercised

$

34.1

 

 

$

9.4

 

 

$

89.4

 

 

$

41.7

 

Stock Compensation Expense Related to Stock Option Awards

$

1.6

 

 

$

1.7

 

 

$

12.8

 

 

$

13.1

 

Issued Stock Options

 

0.0

 

 

 

0.0

 

 

 

2.0

 

 

 

2.2

 

Weighted Average Fair Value of Stock Options issued (per share)

$

0.0

 

 

$

0.0

 

 

$

7.58

 

 

$

6.87

 

Fair Value of Stock Options Issued

$

0.0

 

 

$

0.0

 

 

$

15.4

 

 

$

14.8

 

  

The following table provides a summary of the assumptions used in the valuation of issued stock options:

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

September 30,

 

 

September 30,

 

 

September 30,

 

 

September 30,

 

 

2016

 

 

2015

 

 

2016

 

 

2015

 

Risk-free interest rate

 

-

 

 

 

-

 

 

 

1.7

%

 

 

2.0

%

Expected life in years

 

-

 

 

 

-

 

 

 

6.8

 

 

 

6.3

 

Expected volatility

 

-

 

 

 

-

 

 

 

17.0

%

 

 

17.2

%

Dividend yield

 

-

 

 

 

-

 

 

 

1.5

%

 

 

1.6

%

 

The fair value of stock options is based upon the Black Scholes option pricing model.  The Company determined the stock options’ lives based on historical exercise behavior and their expected volatility and dividend yield based on historical changes in stock price and dividend payments.  The risk free interest rate is based on the yield of an applicable term U.S. Treasury instrument.