Stockholders' Equity

3 Months Ended

Mar. 31, 2022

Stockholders' Equity Note [Abstract]

Stockholders' Equity

(3) Stockholders' Equity

Dividends

On April 12, 2022, our board of directors declared a quarterly dividend of $0.31 per share of common stock to be paid in cash on May 25, 2022 to shareholders of record at the close of business on April 27, 2022. 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:

	2022		2021
First quarter	$	0.31	$	0.28
Second quarter	$	0.31	$	0.28
Third quarter			$	0.28
Fourth quarter			$	0.28
Total	$	0.62	$	1.12

Stock Options

The following tables summarize the details of options granted under our stock option plans that were outstanding as of March 31, 2022, 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		March 31, 2022
Date of Grant						Options Outstanding	Options Exercisable
January 3, 2022	713,438	$	62.00	$	61.980	701,829	53,355
January 4, 2021	741,510	$	48.00	$	47.650	691,096	26,643
January 2, 2020	902,263	$	38.00	$	37.230	796,263	272,843
January 2, 2019	1,316,924	$	26.00	$	25.705	958,946	421,462
January 2, 2018	1,087,936	$	27.50	$	27.270	712,852	435,272
January 3, 2017	1,529,578	$	23.50	$	23.475	706,446	542,046
April 19, 2016	1,690,880	$	23.00	$	22.870	520,571	330,717
April 21, 2015	1,786,440	$	21.00	$	20.630	394,072	232,732
April 22, 2014	1,910,000	$	28.00	$	25.265	182,839	107,855
April 16, 2013	410,000	$	27.00	$	24.625	5,672	5,672
Total	12,088,969					5,670,586	2,428,597

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 3, 2022	1.3	%	5.00	1.7	%	28.52	%	$	13.68
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 three-month periods ended March 31, 2022 and 2021 was $1.5 and $1.5, respectively. Unrecognized stock-based compensation expense related to outstanding unvested stock options as of March 31, 2022 was $18.5 and is expected to be recognized over a weighted average period of 4.56 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:

	Three-month Period
Reconciliation	2022	2021
Basic weighted average shares outstanding	575,559,161	574,336,112
Weighted shares assumed upon exercise of stock options	2,059,645	2,210,857
Diluted weighted average shares outstanding	577,618,806	576,546,969

	Three-month Period
Summary of Anti-dilutive Options Excluded	2022		2021
Options to purchase shares of common stock	930,401		711,977
Weighted average exercise prices of options	$	58.40	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.

Translation Adjustment Upon Merger of Foreign Subsidiary

For the three months ended March 31, 2022, we recognized $0.9 of historical cumulative translation to retained earnings upon the merger of a foreign subsidiary.