XML 31 R18.htm IDEA: XBRL DOCUMENT v3.8.0.1
Share-Based Compensation
 9 Months Ended
Sep. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Share-Based Compensation
Share-Based Compensation
The following is a summary of share-based compensation expense:
 
For the Three Months Ended September 30,
 
For the Nine Months Ended September 30,
 
2016
 
2017
 
2016
 
2017
Share-based compensation
$
10.7

 
$
10.3

 
$
30.7

 
$
30.0

Tax benefit
4.1

 
4.0

 
11.8

 
11.5


The Company had $66.4 million and $73.8 million of unrecognized share-based compensation as of December 31, 2016 and September 30, 2017, respectively, which will be recognized over a weighted average period of approximately three years (assuming no forfeitures).
Stock Options
The following table summarizes transactions in the Company’s stock options:
 
Stock Options
 
Weighted Average
Exercise Price
 
Weighted Average
Remaining
Contractual Life
(years)
Unexercised options outstanding - December 31, 2016
1.4

 
$
108.53

 
 
Options granted
0.0

 
168.60

 
 
Options exercised
(0.6
)
 
96.86

 
 
Options forfeited
(0.1
)
 
140.26

 
 
Unexercised options outstanding - September 30, 2017
0.7

 
118.35

 
3.5
Exercisable at September 30, 2017
0.3

 
108.55

 
1.5


For the nine months ended September 30, 2016 and 2017, the Company granted stock options with fair values of $16.4 million and $0.8 million, respectively. Stock options generally vest over a period of three to four years and expire seven years after the grant date. All options have been granted with exercise prices equal to the closing price of the Company’s common stock on the grant date. In certain circumstances, option awards also require certain performance conditions to be satisfied in order for the options to be exercised.
The fair value of options granted was estimated using the Black-Scholes option pricing model. For the nine months ended September 30, 2016 and 2017, the weighted average fair values of options granted were $39.02 and $48.05, per option, respectively, based on the weighted-average grant date assumptions stated below.
 
 
For the Nine Months Ended September 30,
 
 
2016
 
2017
Dividend yield
 
—

 
0.5
%
Expected volatility
 
30.7
%
 
28.0
%
Risk-free interest rate
 
1.6
%
 
2.1
%
Expected life of options (in years)
 
5.7

 
5.7

Forfeiture rate
 
—

 
—


Restricted Stock
The following table summarizes transactions in the Company’s restricted stock units:
 
Restricted
Stock Units
 
Weighted
Average
Grant Date
Value
Unvested units - December 31, 2016
0.6

 
$
168.84

Units granted
0.2

 
153.09

Units vested
(0.2
)
 
167.72

Units forfeited
(0.0
)
 
170.52

Unvested units - September 30, 2017
0.6

 
162.97



For the nine months ended September 30, 2016 and 2017, the Company granted awards with fair values of $28.0 million and $36.7 million, respectively. These awards were valued based on the closing price of the Company’s common stock on the grant date and contain vesting conditions requiring service over a period of three to four years. In certain circumstances, awards also require certain performance conditions to be satisfied.