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Stock Based Compensation | 12 Months Ended
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Dec. 31, 2020
Share-based Payment Arrangement [Abstract] |
Stock Based Compensation | Stock Based Compensation The Company accounts for stock-based compensation pursuant to relevant authoritative guidance, which requires measurement of compensation cost for all stock awards at fair value on the date of grant and recognition of compensation, net of estimated forfeitures, over the requisite service period for awards expected to vest. The Company has a Stock Incentive Plan (the "Plan"), pursuant to which permit the Company's board of directors grants equity to employees and directors. Under the Plan, a maximum of 16.75 million shares of our common stock is approved to be issued for grants of restricted stock and stock options. At December 31, 2020, there were 2.5 million shares available to be granted under the Plan. The table below summarizes the expense recognized within general and administrative expenses in the Consolidated Statements of Income related to share-based payments recognized for the years ended December 31 (in thousands):
|  | 2020 |  | 2019 |  | 2018
Stock options |  | $ | 23,407 |  |  | $ | 32,736 |  |  | $ | 43,443 |
Restricted stock |  | 19,977 |  |  | 28,217 |  |  | 26,496 |
Stock-based compensation |  | $ | 43,384 |  |  | $ | 60,953 |  |  | $ | 69,939 |
The tax benefits recorded on stock based compensation expense and upon the exercises of options were $70.6 million, $61.6 million and $37.3 million for the years ended December 31, 2020, 2019 and 2018, respectively. The following table summarizes the Company’s total unrecognized compensation cost related to stock-based compensation as of December 31, 2020 (cost in thousands):
|  | Unrecognized Compensation Cost |  | Weighted Average Period of Expense Recognition (in Years)
Stock options |  | $ | 35,286 |  |  | 2.30
Restricted stock |  | 26,948 |  |  | 1.97
Total |  | $ | 62,234 |  |  |
Stock Options The following summarizes the changes in the number of shares of common stock under option for the following periods (shares and aggregate intrinsic value in thousands):
|  | Shares |  | Weighted Average Exercise Price |  | Options Exercisable at End of Year |  | Weighted Average Exercise Price of Exercisable Options |  | Weighted Average Fair Value of Options Granted During the Year |  | Aggregate Intrinsic Value
Outstanding at December 31, 2017 |  | 8,031 |  |  | $ | 109.78 |  |  | 4,029 |  |  | $ | 75.80 |  |  |  |  | $ | 663,815 |
Granted |  | 412 |  |  | 204.59 |  |  |  |  |  |  | $ | 50.07 |  |  |
Exercised |  | (708) |  |  | 73.26 |  |  |  |  |  |  |  |  | 79,588 |
Forfeited |  | (119) |  |  | 155.41 |  |  |  |  |  |  |  |  |
Outstanding at December 31, 2018 |  | 7,616 |  |  | 117.58 |  |  | 5,174 |  |  | 98.39 |  |  |  |  | 518,954 |
Granted |  | 431 |  |  | 244.35 |  |  |  |  |  |  | $ | 57.99 |  |  |
Exercised |  | (1,482) |  |  | 115.53 |  |  |  |  |  |  |  |  | 255,242 |
Forfeited |  | (302) |  |  | 167.35 |  |  |  |  |  |  |  |  |
Outstanding at December 31, 2019 |  | 6,263 |  |  | 124.38 |  |  | 5,137 |  |  | 109.03 |  |  |  |  | 1,022,860 |
Granted |  | 503 |  |  | 215.36 |  |  |  |  |  |  | $ | 53.18 |  |  |
Exercised |  | (1,681) |  |  | 80.84 |  |  |  |  |  |  |  |  | 322,823 |
Forfeited |  | (121) |  |  | 194.61 |  |  |  |  |  |  |  |  |
Outstanding at December 31, 2020 |  | 4,964 |  |  | $ | 146.69 |  |  | 3,994 |  |  | $ | 130.37 |  |  |  |  | $ | 626,107 |
Expected to vest at December 31, 2020 |  | 970 |  |  | $ | 213.89 |  |  |  |  |  |  |  |  |
The following table summarizes information about stock options outstanding at December 31, 2020 (shares in thousands):
Exercise Price |  | Options Outstanding |  | Weighted Average Remaining Vesting Life in Years |  | Options Exercisable
$10.00 – $150.74 |  | 3,541 |  |  | 0.01 |  | 3,488 |
$151.49 – $165.96 |  | 242 |  |  | 0.27 |  | 190 |
$172.68 – $199.75 |  | 495 |  |  | 1.60 |  | 198 |
$202.02 – $209.05 |  | 45 |  |  | 1.54 |  | 14 |
$213.69 – $231.70 |  | 351 |  |  | 2.83 |  | 37 |
$248.28 – $263.21 |  | 271 |  |  | 2.08 |  | 64 |
$288.37 – $319.55 |  | 19 |  |  | 2.63 |  | 3 |
|  | 4,964 |  |  |  |  | 3,994 |
The aggregate intrinsic value of stock options exercisable at December 31, 2020 was $569.0 million. The weighted average remaining contractual term of options exercisable at December 31, 2020 was 4.8 years. The fair value of stock option awards granted was estimated using the Black-Scholes option pricing model with the following weighted-average assumptions for grants or modifications during the years ended December 31 as follows:
|  | 2020 |  | 2019 |  | 2018
Risk-free interest rate |  | 0.37 | % |  | 2.40 | % |  | 2.57 | %
Dividend yield |  | — |  |  | — |  |  | — |
Expected volatility |  | 31.00 | % |  | 26.40 | % |  | 26.92 | %
Expected life (in years) |  | 3.9 |  | 3.7 |  | 3.8
The weighted-average remaining contractual life for options outstanding was 5.3 years at December 31, 2020. Restricted Stock The fair value of restricted stock units granted with market based vesting conditions was estimated using the Monte Carlo simulation valuation model with the following assumptions during 2019. There were no restricted stock shares granted with market based vesting conditions in 2020 and 2018.
|  | 2019
Risk-free interest rate |  | 1.48 | %
Dividend yield |  | — |
Expected volatility |  | 25.40 | %
Expected life (in years) |  | 2.36
The following table summarizes the changes in the number of shares of restricted stock and restricted stock units for the following periods (shares in thousands):
|  | Shares |  | Weighted Average Grant Date Fair Value
Outstanding at December 31, 2017 |  | 365 |  |  | $ | 155.58 |
Granted |  | 107 |  |  | 200.71 |
Cancelled |  | (47) |  |  | 339.34 |
Issued |  | (251) |  |  | 154.85 |
Outstanding at December 31, 2018 |  | 174 |  |  | 190.73 |
Granted |  | 232 |  |  | 212.79 |
Cancelled |  | (49) |  |  | 225.96 |
Issued |  | (114) |  |  | 206.05 |
Outstanding at December 31, 2019 |  | 243 |  |  | 246.34 |
Granted |  | 171 |  |  | 252.36 |
Cancelled |  | (100) |  |  | 249.17 |
Issued |  | (140) |  |  | 227.20 |
Outstanding at December 31, 2020 |  | 174 |  |  | $ | 265.29 |

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- Definition The entire disclosure for share-based payment arrangement. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 + Details
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