Stockholders' Equity

9 Months Ended

Sep. 30, 2021

Stockholders' Equity Note [Abstract]

Stockholders' Equity

(3) Stockholders' Equity

Dividends

On October 11, 2021, our board of directors declared a quarterly dividend of $0.28 per share of common stock to be paid in cash on November 23, 2021 to shareholders of record at the close of business on October 26, 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	$	0.28	$	0.25
Fourth quarter (special)			$	0.40
Total	$	1.12	$	1.40

Stock Options

The following tables summarize the details of options granted under our stock option plans that were outstanding as of September 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		September 30, 2021
Date of Grant						Options Outstanding	Options Exercisable
January 4, 2021	741,510	$	48.00	$	47.650	715,053	26,643
January 2, 2020	902,263	$	38.00	$	37.230	848,066	24,964
January 2, 2019	1,316,924	$	26.00	$	25.705	1,035,830	285,098
January 2, 2018	1,087,936	$	27.50	$	27.270	763,921	337,067
January 3, 2017	1,529,578	$	23.50	$	23.475	750,260	380,596
April 19, 2016	1,690,880	$	23.00	$	22.870	693,029	498,611
April 21, 2015	1,786,440	$	21.00	$	20.630	441,398	278,570
April 22, 2014	1,910,000	$	28.00	$	25.265	224,937	149,953
April 16, 2013	410,000	$	27.00	$	24.625	13,696	13,696
Total	11,375,531					5,486,190	1,995,198

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 nine-month periods ended September 30, 2021 and 2020 was $4.3 and $4.3, respectively. Unrecognized stock-based compensation expense related to outstanding unvested stock options as of September 30, 2021 was $14.0 and is expected to be recognized over a weighted average period of 4.11 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 Period		Three-month Period
Reconciliation	2021	2020	2021	2020
Basic weighted average shares outstanding	574,637,254	573,673,031	574,973,196	573,913,929
Weighted shares assumed upon exercise of stock options	2,291,000	1,797,201	2,286,643	2,203,402
Diluted weighted average shares outstanding	576,928,254	575,470,232	577,259,839	576,117,331

	Nine-month Period			Three-month Period
Summary of Anti-dilutive Options Excluded	2021		2020	2021		2020
Options to purchase shares of common stock	680,227		852,728	688,410		—
Weighted average exercise prices of options	$	48.00	38.00	$	48.00	—

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.