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Stockholders' Equity
 12 Months Ended
Dec. 31, 2023
Stockholders' Equity Note [Abstract]  
Stockholders' Equity
Note 5. Stockholders' Equity
Dividends
On January 17, 2024, our board of directors declared a quarterly dividend of $0.39 per share of common stock to be paid in cash on February 29, 2024 to shareholders of record at the close of business on February 1, 2024. In 2023, we paid aggregate annual cash dividends per share of $1.78, which included a special, one-time dividend of $0.38 per share. We paid aggregate annual cash dividends per share of $1.24 and $1.12 in 2022 and 2021, respectively.
Stock Options
Effective January 2, 2024, the compensation committee of our board of directors granted to our employees options to purchase a total of 764,195 shares of our common stock at an exercise price of $64.00 per share. On the same date, certain of our non-employee directors received options to acquire a total of 50,717 shares of our common stock at an exercise price of $64.00 per share. The closing stock price on the effective date of the grants was $63.55 per share.
The following tables summarize the details of options granted under our stock option plans that were still outstanding as of December 31, 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		December 31, 2023
Date of GrantOptions
Outstanding		Options
Exercisable
January 3, 20231,071,943 $48.00 $47.400 989,048 70,562 
January 3, 2022713,438 $62.00 $61.980 611,848 53,355 
January 4, 2021741,510 $48.00 $47.650 591,206 211,323 
January 2, 2020902,263 $38.00 $37.230 658,884 322,242 
January 2, 20191,316,924 $26.00 $25.705 758,611 451,061 
January 2, 20181,087,936 $27.50 $27.270 541,026 419,460 
January 3, 20171,529,578 $23.50 $23.475 523,828 426,290 
April 19, 20161,690,880 $23.00 $22.870 245,075 188,177 
April 21, 20151,786,440 $21.00 $20.630 54,552 54,552 
Total10,840,912 4,974,078 2,197,022 
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 3, 20234.0% 5.002.6% 29.58 %$11.62 
January 3, 20221.3% 5.001.7% 28.52 %$13.68 
January 4, 20210.4% 5.002.0% 29.17 %$9.57 
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 
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.
A summary of activities under our stock option plans consisted of the following:
Options
Outstanding
Exercise
Price (1)
Remaining
Life (2)
Outstanding as of January 1, 20235,374,736 $34.37 5.66
Granted1,071,943 $48.00 9.00
Exercised(1,170,693)$25.69 
Cancelled/forfeited(301,908)$45.00 
Outstanding as of December 31, 20234,974,078 $38.70 5.99
Exercisable as of December 31, 20232,197,022 $30.88 4.54
 
Options
Outstanding
Exercise
Price (1)
Remaining
Life (2)
Outstanding as of January 1, 20225,173,270 $30.23 6.08
Granted713,438 $62.00 9.00
Exercised(346,992)$26.78 
Cancelled/forfeited(164,980)$40.00 
Outstanding as of December 31, 20225,374,736 $34.37 5.66
Exercisable as of December 31, 20222,437,636 $27.14 4.30
(1) Weighted average exercise price.
(2) Weighted average remaining contractual life in years.
The total intrinsic value of stock options exercised during the years ended December 31, 2023, 2022, and 2021 was $38.1, $10.2, and $38.8, respectively. The intrinsic value represents the difference between the exercise price and fair value of the underlying shares at the date of exercise.
At December 31, 2023, there was $16.6 of total unrecognized stock-based compensation expense related to outstanding unvested stock options granted under the employee stock option plan. This expense is expected to be recognized over a weighted average period of 4.18 years. Any future change in estimated forfeitures will impact this amount. The total grant date fair value of stock options vested under our employee stock option plan during 2023, 2022, and 2021 was $5.3, $5.2, and $4.8, respectively.
Total stock-based compensation expense related to our employee stock option plan was $7.3, $7.2, and $5.6 for 2023, 2022, and 2021, respectively.
Shares Outstanding
Shares of common stock outstanding were as follows:
202320222021
Balance at beginning of year570,811,674 575,464,682 574,159,575 
Stock options exercised1,170,693 346,992 1,305,107 
Purchases of common stock— (5,000,000)— 
Balance at end of year571,982,367 570,811,674 575,464,682 
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:
Reconciliation202320222021
Basic weighted average shares outstanding571,271,846 573,777,790 574,808,030 
Weighted shares assumed upon exercise of stock options1,736,762 1,845,324 2,309,026 
Diluted weighted average shares outstanding573,008,608 575,623,114 577,117,056 
Summary of Anti-dilutive Options Excluded202320222021
Options to purchase shares of common stock1,568,460 1,335,898 678,310 
Weighted average exercise prices of options$53.80 55.25 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.