Stockholders' Equity

3 Months Ended

Mar. 31, 2016

Stockholders' Equity Note [Abstract]

Stockholders' Equity

(2) Stockholders’ Equity

Our authorized, issued, and outstanding shares (stated in whole numbers) consist of the following:

	Par Value		March 31, 2016	December 31, 2015	March 31, 2015
Preferred stock	$.01	/share
Shares authorized			5,000,000	5,000,000	5,000,000
Shares issued and outstanding			—	—	—
Common stock	$.01	/share
Shares authorized			400,000,000	400,000,000	400,000,000
Shares issued and outstanding			288,872,549	289,581,682	293,955,044

Dividends

On April 11, 2016, our board of directors declared a dividend of $0.30 per share of common stock. This dividend is to be paid in cash on May 24, 2016 to shareholders of record at the close of business on April 26, 2016. Since 2011, we have paid quarterly dividends. Our board of directors expects to continue paying quarterly dividends, provided the future determination as to payment of dividends will depend on the financial needs of the Company and such other factors as deemed relevant by the board of directors.

The following table presents the dividends either paid previously or declared by our board of directors for future payment on a per share basis:

	2016		2015
First quarter	$	0.30	0.28
Second quarter	0.30		0.28
Third quarter			0.28
Fourth quarter			0.28
Total	$	0.60	1.12

Stock Options

The following tables summarize the details of grants made under our stock option plan that are still outstanding, and the assumptions used to value these grants. All options granted were effective at the close of business on the date of grant.

	Options Granted	Option Exercise (Strike) Price		Closing Stock Price on Date of Grant		March 31, 2016
Date of Grant						Options Outstanding	Options Exercisable
April 21, 2015	893,220	$	42.00	$	41.26	806,206	—
April 22, 2014	955,000	$	56.00	$	50.53	690,000	5,000
April 16, 2013	205,000	$	54.00	$	49.25	125,000	2,500
April 17, 2012	1,235,000	$	54.00	$	49.01	1,033,250	341,250
April 19, 2011	410,000	$	35.00	$	31.78	245,300	145,300
April 20, 2010	530,000	$	30.00	$	27.13	186,700	96,700
April 21, 2009	790,000	$	27.00	$	17.61	269,100	179,100
April 15, 2008	550,000	$	27.00	$	24.35	118,250	93,250
April 17, 2007	4,380,000	$	22.50	$	20.15	38,275	38,275
Total	9,948,220					3,512,081	901,375

Date of Grant	Risk-free Interest Rate		Expected Life of Option in Years	Expected Dividend Yield		Expected Stock Volatility		Estimated Fair Value of Stock Option
April 21, 2015	1.3	%	5.00	2.7	%	26.84	%	$	7.35
April 22, 2014	1.8	%	5.00	2.0	%	28.55	%	$	9.57
April 16, 2013	0.7	%	5.00	1.6	%	37.42	%	$	12.66
April 17, 2012	0.9	%	5.00	1.4	%	39.25	%	$	13.69
April 19, 2011	2.1	%	5.00	1.6	%	39.33	%	$	11.20
April 20, 2010	2.6	%	5.00	1.5	%	39.10	%	$	8.14
April 21, 2009	1.9	%	5.00	1.0	%	38.80	%	$	3.64
April 15, 2008	2.7	%	5.00	1.0	%	30.93	%	$	7.75
April 17, 2007	4.6	%	4.85	1.0	%	31.59	%	$	5.63

All of the options in the tables above vest and become exercisable over a period of up to eight years. Generally, each option will terminate approximately nine years after the grant date.

The fair value of each share-based option is estimated on the date of grant using a Black-Scholes valuation method that uses the assumptions listed above. The risk-free interest rate is based on the U.S. Treasury rate over the expected life of the option at the time of grant. The expected life is the average length of time over which we expect the employee groups will exercise their options, which is based on historical experience with similar grants. The dividend yield is estimated over the expected life of the option based on our current dividend payout, historical dividends paid, and expected future cash dividends. Expected stock volatilities are based on the movement of our stock price over the most recent historical period equivalent to the expected life of the option.

Compensation expense equal to the grant date fair value is recognized for all of these awards over the vesting period. The stock-based compensation expense for the three-month periods ended March 31, 2016 and 2015 was $1,000 and $1,620, respectively. Unrecognized stock-based compensation expense related to outstanding unvested stock options as of March 31, 2016 was $13,391 and is expected to be recognized over a weighted average period of 4.50 years. Any future changes in estimated forfeitures will impact this amount.

Earnings Per Share

The following tables present a reconciliation of the denominators used in the computation of basic and diluted earnings per share and a summary of the options to purchase shares of common stock which were excluded from the diluted earnings calculation because they were anti-dilutive:

	Three-month Period
Reconciliation	2016	2015
Basic weighted average shares outstanding	288,808,019	295,237,625
Weighted shares assumed upon exercise of stock options	315,584	699,093
Diluted weighted average shares outstanding	289,123,603	295,936,718

	Three-month Period
Summary of Anti-dilutive Options Excluded	2016		2015
Options to purchase shares of common stock	2,661,571		2,066,000
Weighted average exercise price of options	$	50.89	$	54.82

Any dilutive impact summarized above relates to periods when the average market price of our stock exceeded the exercise price of the potentially dilutive option securities then outstanding.