Stockholders' Equity

9 Months Ended

Sep. 30, 2023

Stockholders' Equity Note [Abstract]

Stockholders' Equity

(3) Stockholders' Equity

Dividends

On October 11, 2023, our board of directors declared a quarterly dividend of $0.35 per share of common stock to be paid in cash on November 24, 2023 to shareholders of record at the close of business on October 26, 2023.

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:

	2023		2022
First quarter	$	0.35	$	0.31
Second quarter	0.35		0.31
Third quarter	0.35		0.31
Fourth quarter	0.35		0.31
Total	$	1.40	$	1.24

Stock Options

The following tables summarize the details of options granted under our stock option plans that were outstanding as of September 30, 2023, and the assumptions used to value those grants. All such grants were effective at the close of business on the date of grant.

	Options Granted	Option Exercise Price		Closing Stock Price on Date of Grant		September 30, 2023
Date of Grant						Options Outstanding	Options Exercisable
January 3, 2023	1,071,943	$	48.00	$	47.400	1,023,837	70,562
January 3, 2022	713,438	$	62.00	$	61.980	630,718	53,355
January 4, 2021	741,510	$	48.00	$	47.650	623,549	228,275
January 2, 2020	902,263	$	38.00	$	37.230	709,736	361,582
January 2, 2019	1,316,924	$	26.00	$	25.705	836,512	520,618
January 2, 2018	1,087,936	$	27.50	$	27.270	614,407	491,475
January 3, 2017	1,529,578	$	23.50	$	23.475	615,307	515,809
April 19, 2016	1,690,880	$	23.00	$	22.870	401,641	343,901
April 21, 2015	1,786,440	$	21.00	$	20.630	189,501	189,501
Total	10,840,912					5,645,208	2,775,078

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, 2023	4.0	%	5.00	2.6	%	29.58	%	$	11.62
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

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 10 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, net of forfeitures, 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, 2023 and 2022 was $5.6 and $4.4, respectively, while the third quarter of 2023 and 2022 was $1.8 and $1.4, respectively. Unrecognized stock-based compensation expense related to outstanding unvested stock options as of September 30, 2023 was $18.6 and is expected to be recognized over a weighted average period of 4.31 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	2023	2022	2023	2022
Basic weighted average shares outstanding	571,145,110	574,667,188	571,368,442	573,019,381
Weighted shares assumed upon exercise of stock options	1,726,310	1,912,011	1,731,267	1,724,550
Diluted weighted average shares outstanding	572,871,420	576,579,199	573,099,709	574,743,931

	Nine-month Period			Three-month Period
Summary of Anti-dilutive Options Excluded	2023		2022	2023		2022
Options to purchase shares of common stock	1,831,551		1,343,160	1,598,463		1,340,567
Weighted average exercise prices of options	$	53.05	55.23	$	53.65	55.22

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.