XML 21 R12.htm IDEA: XBRL DOCUMENT v3.20.2
Stockholders' Equity
 9 Months Ended
Sep. 30, 2020
Stockholders' Equity Note [Abstract]  
Stockholders' Equity
(4) Stockholders' Equity
Dividends
On October 12, 2020, our board of directors declared a dividend of $0.25 per share of common stock to be paid in cash on November 24, 2020 to shareholders of record at the close of business on October 27, 2020. Since 2011, we have paid quarterly dividends. Our board of directors currently intends to continue paying quarterly dividends, provided that any future determination as to payment of dividends will depend on the financial condition and results of operations of the company and such other factors as are 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:
20202019
First quarter$0.250 0.215 
Second quarter0.250 0.215 
Third quarter0.250 0.220 
Fourth quarter0.250 0.220 
Total$1.000 0.870 
Stock Options
The following tables summarize the details of options granted under our stock option plans that were outstanding as of September 30, 2020, and the assumptions used to value these grants. All such grants 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		September 30, 2020
Date of GrantOptions
Outstanding		Options
Exercisable
January 2, 2020902,263 $38.00 $37.230 878,190 24,964 
January 2, 20191,316,924 $26.00 $25.705 1,222,784 25,010 
January 2, 20181,087,936 $27.50 $27.270 898,184 281,144 
January 3, 20171,529,578 $23.50 $23.475 996,285 385,821 
April 19, 20161,690,880 $23.00 $22.870 957,561 460,857 
April 21, 20151,786,440 $21.00 $20.630 607,209 360,577 
April 22, 20141,910,000 $28.00 $25.265 342,000 187,000 
April 16, 2013410,000 $27.00 $24.625 40,466 21,728 
April 17, 20122,470,000 $27.00 $24.505 92,748 92,748 
Total13,104,021 6,035,427 1,839,849 

Date of GrantRisk-free
Interest Rate		Expected Life of
Option in Years		Expected
Dividend
Yield		Expected
Stock
Volatility		Estimated Fair
Value of Stock
Option
January 2, 20201.7 %5.002.4 %25.70 %$6.81 
January 2, 20192.5 %5.002.9 %23.96 %$4.40 
January 2, 20182.2 %5.002.3 %23.45 %$5.02 
January 3, 20171.9 %5.002.6 %24.49 %$4.20 
April 19, 20161.3 %5.002.6 %26.34 %$4.09 
April 21, 20151.3 %5.002.7 %26.84 %$3.68 
April 22, 20141.8 %5.002.0 %28.55 %$4.79 
April 16, 20130.7 %5.001.6 %37.42 %$6.33 
April 17, 20120.9 %5.001.4 %39.25 %$6.85 
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 ten 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 nine-month periods ended September 30, 2020 and 2019 was $4.3 and $4.3, respectively. Unrecognized stock-based compensation expense related to outstanding unvested stock options as of September 30, 2020 was $13.8 and is expected to be recognized over a weighted average period of 4.01 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 per share calculation because they were anti-dilutive:
 Nine-month PeriodThree-month Period
Reconciliation2020201920202019
Basic weighted average shares outstanding573,673,031 572,934,475 573,913,929 573,452,002 
Weighted shares assumed upon exercise of stock options1,797,201 1,042,830 2,203,402 914,771 
Diluted weighted average shares outstanding575,470,232 573,977,305 576,117,331 574,366,773 
 Nine-month PeriodThree-month Period
Summary of Anti-dilutive Options Excluded2020201920202019
Options to purchase shares of common stock852,728 460,824 — 553,366 
Weighted average exercise prices of options$38.00 27.55 $— 27.59 
Any dilutive impact summarized above related to periods when the average market price of our stock exceeded the exercise price of the potentially dilutive stock options then outstanding.