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Stockholders' Equity
 9 Months Ended
Sep. 30, 2016
Stockholders' Equity Note [Abstract]  
Stockholders' Equity
(2) Stockholders’ Equity
Dividends
On October 10, 2016, our board of directors declared a dividend of $0.30 per share of common stock. This dividend is to be paid in cash on November 22, 2016 to shareholders of record at the close of business on October 25, 2016. Since 2011, we have paid quarterly dividends. Our board of directors expects to continue paying quarterly dividends, provided the future determination as to payment of dividends will depend on the financial needs of the Company and such other factors as deemed relevant by the board of directors.
The following table presents the dividends either paid previously or declared by our board of directors for future payment on a per share basis:
 
2016
 
2015
First quarter
$
0.30

 
0.28

Second quarter
0.30

 
0.28

Third quarter
0.30

 
0.28

Fourth quarter
0.30

 
0.28

Total
$
1.20

 
1.12


Stock Options
The following tables summarize the details of grants made under our stock option plan that are still outstanding and the assumptions used to value these grants. All options granted 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
 
September 30, 2016
Date of Grant
 
 
 
Options
Outstanding
 
Options
Exercisable
April 19, 2016
845,440

 
$
46.00

 
$
45.74

 
805,447

 
—

April 21, 2015
893,220

 
$
42.00

 
$
41.26

 
759,546

 
—

April 22, 2014
955,000

 
$
56.00

 
$
50.53

 
640,000

 
10,000

April 16, 2013
205,000

 
$
54.00

 
$
49.25

 
115,000

 
2,500

April 17, 2012
1,235,000

 
$
54.00

 
$
49.01

 
987,500

 
596,750

April 19, 2011
410,000

 
$
35.00

 
$
31.78

 
150,800

 
113,300

April 20, 2010
530,000

 
$
30.00

 
$
27.13

 
180,550

 
120,550

April 21, 2009
790,000

 
$
27.00

 
$
17.61

 
243,400

 
200,900

April 15, 2008
550,000

 
$
27.00

 
$
24.35

 
94,350

 
94,350

Total
6,413,660

 
 
 
 
 
3,976,593

 
1,138,350


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
April 19, 2016
1.3
%
 
5.00
 
2.6
%
 
26.34
%
 
$
8.18

April 21, 2015
1.3
%
 
5.00
 
2.7
%
 
26.84
%
 
$
7.35

April 22, 2014
1.8
%
 
5.00
 
2.0
%
 
28.55
%
 
$
9.57

April 16, 2013
0.7
%
 
5.00
 
1.6
%
 
37.42
%
 
$
12.66

April 17, 2012
0.9
%
 
5.00
 
1.4
%
 
39.25
%
 
$
13.69

April 19, 2011
2.1
%
 
5.00
 
1.6
%
 
39.33
%
 
$
11.20

April 20, 2010
2.6
%
 
5.00
 
1.5
%
 
39.10
%
 
$
8.14

April 21, 2009
1.9
%
 
5.00
 
1.0
%
 
38.80
%
 
$
3.64

April 15, 2008
2.7
%
 
5.00
 
1.0
%
 
30.93
%
 
$
7.75


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 nine 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 nine-month periods ended September 30, 2016 and 2015 was $2,900 and $4,641, respectively. Unrecognized stock-based compensation expense related to outstanding unvested stock options as of September 30, 2016 was $15,833 and is expected to be recognized over a weighted average period of 4.72 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
2016
 
2015
 
2016
 
2015
Basic weighted average shares outstanding
288,907,934

 
292,083,511

 
288,995,492

 
289,917,768

Weighted shares assumed upon exercise of stock options
227,908

 
637,126

 
154,114

 
556,771

Diluted weighted average shares outstanding
289,135,842

 
292,720,637

 
289,149,606

 
290,474,539


 
 
Nine-month Period
 
Three-month Period
Summary of Anti-dilutive Options Excluded
2016
 
2015
 
2016
 
2015
Options to purchase shares of common stock
3,061,217

 
2,547,639

 
3,335,439

 
3,032,532

Weighted average exercise price of options
$
50.17

 
52.21

 
$
49.67

 
49.98


Any dilutive impact summarized above relates to periods when the average market price of our stock exceeded the exercise price of the potentially dilutive stock options then outstanding.