Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2019

Share-based Payment Arrangement [Abstract]

Weighted-Average Assumptions Used for Estimating the Fair Value of Option Rights

The fair value of the Company’s option rights was estimated at the date of grant using a Black-Scholes-Merton option-pricing model with the following weighted-average assumptions for all options granted:



	2019		2018		2017
Risk-free interest rate	1.64	%	2.99	%	1.97	%
Expected life of option rights	5.05 years		5.05 years		5.05 years
Expected dividend yield of stock	.87	%	.89	%	0.85	%
Expected volatility of stock	.232		.211		.213

Summary of Non-Qualified and Incentive Stock Option Right Activity

A summary of the Company’s non-qualified and incentive stock option right activity is shown in the following table:



	2019						2018						2017
	Optioned Shares		Weighted- Average Exercise Price Per Share		Aggregate Intrinsic Value (in millions)		Optioned Shares		Weighted- Average Exercise Price Per Share		Aggregate Intrinsic Value (in millions)		Optioned Shares		Weighted- Average Exercise Price Per Share		Aggregate Intrinsic Value (in millions)
Outstanding at beginning of year	4,485,249		$	238.53			4,646,313		$	204.33			5,163,709		$	163.61
Granted	498,886		549.32				565,336		410.00				689,506		377.84
Exercised	(902,166	)	171.37				(662,218	)	137.03				(1,154,698	)	123.16
Forfeited	(40,312	)	380.13				(60,288	)	327.08				(49,977	)	267.02
Expired	(1,928	)	345.68				(3,894	)	238.26				(2,227	)	236.97
Outstanding at end of year	4,039,729		$	290.45	$	1,184.0	4,485,249		$	238.53	$	704.2	4,646,313		$	204.33	$	955.8
Exercisable at end of year	2,973,656		$	226.51	$	1,061.7	3,274,780		$	188.48	$	671.3	3,288,237		$	156.43	$	833.9

Summary of RSU Activity

A summary of the Company’s RSU activity for the years ended December 31 is shown in the following table:



	2019		2018		2017
Outstanding at beginning of year	290,402		335,796		397,326
Granted	131,275		116,636		112,647
Exchanged Valspar awards (net of forfeitures)					51,009
Vested	(168,730	)	(150,576	)	(215,433	)
Forfeited	(4,775	)	(11,454	)	(9,753	)
Outstanding at end of year	248,172		290,402		335,796