Stockholders' Equity

6 Months Ended

Jun. 30, 2021

Stockholders' Equity Note [Abstract]

Stockholders' Equity

(3) Stockholders' Equity

Dividends

On July 12, 2021, our board of directors declared a quarterly dividend of $0.28 per share of common stock to be paid in cash on August 24, 2021 to shareholders of record at the close of business on July 27, 2021. Since 2011, we have paid quarterly cash dividends, and in 2020, we paid a special cash dividend late in the year. Our board of directors currently intends to continue paying quarterly cash 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 cash dividends either paid previously or declared by our board of directors for future payment on a per share basis:

	2021		2020
First quarter	$	0.28	$	0.25
Second quarter	$	0.28	$	0.25
Third quarter	$	0.28	$	0.25
Fourth quarter			$	0.25
Fourth quarter (special)			$	0.40
Total	$	0.84	$	1.40

Stock Options

The following tables summarize the details of options granted under our stock option plans that were outstanding as of June 30, 2021, 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		June 30, 2021
Date of Grant						Options Outstanding	Options Exercisable
January 4, 2021	741,510	$	48.00	$	47.650	724,219	26,643
January 2, 2020	902,263	$	38.00	$	37.230	855,563	24,964
January 2, 2019	1,316,924	$	26.00	$	25.705	1,079,070	321,940
January 2, 2018	1,087,936	$	27.50	$	27.270	806,121	376,785
January 3, 2017	1,529,578	$	23.50	$	23.475	860,329	486,483
April 19, 2016	1,690,880	$	23.00	$	22.870	842,593	645,649
April 21, 2015	1,786,440	$	21.00	$	20.630	540,418	377,234
April 22, 2014	1,910,000	$	28.00	$	25.265	251,372	175,138
April 16, 2013	410,000	$	27.00	$	24.625	18,771	18,771
Total	11,375,531					5,978,456	2,453,607

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
January 4, 2021	0.4	%	5.00	2.0	%	29.17	%	$	9.57
January 2, 2020	1.7	%	5.00	2.4	%	25.70	%	$	6.81
January 2, 2019	2.5	%	5.00	2.9	%	23.96	%	$	4.40
January 2, 2018	2.2	%	5.00	2.3	%	23.45	%	$	5.02
January 3, 2017	1.9	%	5.00	2.6	%	24.49	%	$	4.20
April 19, 2016	1.3	%	5.00	2.6	%	26.34	%	$	4.09
April 21, 2015	1.3	%	5.00	2.7	%	26.84	%	$	3.68
April 22, 2014	1.8	%	5.00	2.0	%	28.55	%	$	4.79
April 16, 2013	0.7	%	5.00	1.6	%	37.42	%	$	6.33

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 six-month periods ended June 30, 2021 and 2020 was $2.9 and $2.9, respectively. Unrecognized stock-based compensation expense related to outstanding unvested stock options as of June 30, 2021 was $15.3 and is expected to be recognized over a weighted average period of 4.27 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:

	Six-month Period		Three-month Period
Reconciliation	2021	2020	2021	2020
Basic weighted average shares outstanding	574,465,377	573,550,730	574,592,653	573,197,303
Weighted shares assumed upon exercise of stock options	2,289,356	1,577,540	2,359,005	1,754,697
Diluted weighted average shares outstanding	576,754,733	575,128,270	576,951,658	574,952,000

	Six-month Period			Three-month Period
Summary of Anti-dilutive Options Excluded	2021		2020	2021		2020
Options to purchase shares of common stock	688,058		893,428	696,951		895,566
Weighted average exercise prices of options	$	48.00	38.00	$	48.00	38.00

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.