Annual report pursuant to Section 13 and 15(d)

Shareholder's Equity, Stock Options and Net Income per Share (Tables)

v3.19.3.a.u2
Shareholder's Equity, Stock Options and Net Income per Share (Tables)
12 Months Ended
Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]
The following table sets forth the computation of basic and diluted net income per share:
 

2019
 
2018
 
2017
Numerator:
 
 
 
 
 
Net income and comprehensive income
$
87,099

 
$
92,051

 
$
87,255

Income allocated to participating securities
(945
)
 
(881
)
 
(700
)
Numerator for basic and diluted income per share - net income
86,154

 
91,170

 
86,555


 
 
 
 
 
Denominator:
 
 
 
 
 
Denominator for basic net income per share - weighted-average shares (in thousands)
28,195

 
29,076

 
29,867

Effect of dilutive stock options (in thousands)
82

 
80

 
64

Effect of dilutive performance shares (in thousands)
31

 
34

 
33

Denominator for diluted net income per share - adjusted weighted-average shares (in thousands)
28,308

 
29,190

 
29,964

Basic net income per share
$
3.06

 
$
3.14

 
$
2.90

Diluted net income per share
$
3.04

 
$
3.12

 
$
2.89


Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block]
The number of instruments that could potentially dilute net income per basic share in the future, but that were not included in the computation of net income per diluted share because to do so would have been anti-dilutive for the periods presented, are as follows:
 
2019
 
2018
 
2017
Anti-dilutive stock options (in thousands)
183

 
126

 
172

Anti-dilutive performance shares (in thousands)

 
16

 

Anti-dilutive non-vested shares and deferred stock units (in thousands)

 
9

 

Total anti-dilutive shares (in thousands)
183

 
151

 
172


Employee Stock Option [Member]  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Share-based Compensation, Stock Options, Activity [Table Text Block]
The following table contains the weighted-average assumptions used to estimate the fair value of options granted during the years ended December 31, 2018 and 2017 .  These assumptions are subjective and changes in these assumptions can materially affect the fair value estimate.

December 31,
2018

December 31,
2017
Expected dividend yield
1.1
%

1.3
%
Expected stock price volatility
24.4
%

28.5
%
Weighted average risk-free interest rate
2.7
%

2.0
%
Expected life of options (years)
6.1


5.9


    
The following table summarizes the Company’s employee stock options outstanding as of December 31, 2019:








Outstanding



Exercisable






Weighted-

Weighted-



Weighted-
Range of

Number

Average

Average

Number

Average
Exercise

Outstanding

Remaining

Exercise

Exercisable

Exercise
Price

(000)

Contractual Life

Price

(000)

Price
42.48

-
44.90


93


2.8

43.63


93


43.63

45.34

-
48.32


100


4.0

47.73


69


47.69

50.71

-
53.73


49


2.4

51.16


47


51.07

57.18

-
60.42


88


5.1

58.80


29


58.68

64.26

-
64.26


100


5.7

64.26


33


64.26

$
42.48

-
64.26


430


4.2

$
53.33


271


$
50.08


The following tables summarize the Company’s employee stock option activity and related information for the years ended December 31, 2019, 2018 and 2017. The Company did not make any stock option grants during the year ended December 31, 2019.

 
Year ended
 
December 31, 2019
 
December 31, 2018
 
December 31, 2017
 
 
 
Weighted-
 
 
 
Weighted-
 
 
 
Weighted-
 
 
 
Average
 
 
 
Average
 
 
 
Average
 
Options
 
Exercise
 
Options
 
Exercise
 
Options
 
Exercise
 
(000)
 
Price
 
(000)
 
Price
 
(000)
 
Price
Outstanding at beginning of year
538

 
$
51

 
440

 
$
45

 
564

 
$
41

Granted

 

 
193

 
62

 
128

 
48

Exercised
(99
)
 
43

 
(95
)
 
41

 
(206
)
 
35

Forfeited
(8
)
 
54

 

 

 
(46
)
 
46

Outstanding at end of year
431

 
$
53

 
538

 
$
51

 
440

 
$
45

Exercisable at end of year
272

 
$
50

 
230

 
$
45

 
226

 
$
42

Weighted-average fair value of options granted during the year
$

 
 
 
$
16

 
 
 
$
13

 
 
Aggregate intrinsic value for options exercised
$
2,388

 
 
 
$
1,992

 
 
 
$
3,569

 
 
Average aggregate intrinsic value for options outstanding
$
4,147

 
 
 
 
 
 
 
 
 
 
Average aggregate intrinsic value for exercisable options
$
3,497

 
 
 
 
 
 
 
 
 
 

    

Year ended

December 31,
2019

December 31,
2018

December 31,
2017
Shared-based compensation for options
$
1,597


$
1,578


$
1,313

Tax benefit for option compensation
$
403


$
398


$
466

Unrecognized compensation cost for options
$
1,490






Weighted average period over which unrecognized compensation will be recognized (years)
1.4

 
 
 
 



Employee Non-vested Shares [Member]  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Schedule of Nonvested Share Activity [Table Text Block] The following tables summarize the Company's employee non-vested share activity and related information:

Year ended

December 31, 2019

December 31, 2018

December 31, 2017



Weighted-



Weighted-



Weighted-

Non-vested

Average

Non-vested

Average

Non-vested

Average

Shares

Grant Date

Shares

Grant Date

Shares

Grant Date

(000)

Fair Value

(000)

Fair Value

(000)

Fair Value












Outstanding and non-vested at beginning of year
315


$
55


227


$
47


222


$
45

Granted
117


59


202


60


126


48

Vested
(131
)

61


(107
)

56


(105
)

45

Forfeited
(24
)

57


(7
)

52


(16
)

47

Outstanding and non-vested at end of year
277


$
58


315


$
55


227


$
47

Aggregate grant date fair value
$
16,181




$
17,295




$
10,618



Total fair value of shares vested during the year
$
7,954




$
6,040




$
5,040





Year ended

December 31,
2019

December 31,
2018

December 31,
2017
Shared-based compensation for non-vested shares
$
8,001


$
6,874


$
5,045

Tax benefit for non-vested share compensation
$
2,016


$
1,732


$
1,791

Unrecognized compensation cost for non-vested shares
$
8,654






Weighted average period over which unrecognized compensation will be recognized (years)
1.7

 
 
 
 

Key Employee Performance Share Based Plan [Member]  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Schedule of Nonvested Performance-based Units Activity [Table Text Block] The following table contains the weighted-average assumptions used to estimate the fair value of performance shares granted using the Monte Carlo simulation.  These assumptions are subjective and changes in these assumptions can materially affect the fair value estimate.

 
 
Year ended
 
 

December 31,
2019
 
December 31,
2018

December 31,
2017
Expected stock price volatility
23.4
%
 
24.3
%

24.7
%
Weighted average risk-free interest rate
2.5
%
 
2.2
%

1.4
%
    
The following tables summarize the Company's employee performance share activity, assuming median share awards, and related information:

Year ended

December 31,
2019
 
December 31,
2018
 
December 31,
2017



Weighted-



Weighted-



Weighted-

Non-vested

Average

Non-vested

Average

Non-vested

Average

Shares

Grant Date

Shares

Grant Date

Shares

Grant Date

(000)

Fair Value

(000)

Fair Value

(000)

Fair Value












Outstanding and non-vested at beginning of year
65


$
58


69


$
58


80


$
55

Granted
30


61


18


72


27


56

Additional shares awarded based on performance











Vested
(23
)

64









Forfeited
(10
)

63


(22
)

67


(38
)

51

Outstanding and non-vested at end of year
62


$
62


65


$
58


69


$
58

Aggregate grant date fair value
$
3,870




$
3,795




$
3,980




Year ended

December 31,
2019

December 31,
2018

December 31,
2017
Shared-based compensation for performance shares
$
1,176


$
1,263


$
1,045

Tax benefit for performance share compensation
$
296


$
318


$
371

Unrecognized compensation cost for performance shares
$
1,529







Weighted average period over which unrecognized compensation will be recognized (years)
1.8

 
 
 
 

Employee Stock Purchase Plan [Member]  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Schedule of Share-based Compensation, Employee Stock Purchase Plan, Activity [Table Text Block] The following table summarizes the Company's employee stock purchase activity and related information:


Year ended
 
 

December 31,

December 31,
 
December 31,

2019

2018
 
2017
Shares purchased by participants under plan
12


9

 
10

Average purchase price
$
51


$
51

 
$
46

Weighted-average fair value of each purchase right under the ESPP granted 1
$
14


$
6

 
$
9

Share-based compensation for ESPP shares
$
163


$
59

 
$
92

 
 
 
 
 
 
1 Equal to the discount from the market value of the common stock at the end of each six month purchase period

Nonemployee Director Nonvested Shares Granted [Member]  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Schedule of Nonvested Share Activity [Table Text Block]
The following tables summarize the Company's non-employee non-vested share activity and related information:

Year ended

December 31,
2019
 
December 31,
2018
 
December 31,
2017

Non-vested



Non-vested



Non-vested



Shares and

Weighted-

Shares and

Weighted-

Shares and

Weighted-

Deferred

Average

Deferred

Average

Deferred

Average

Stock Units

Grant Date

Stock Units

Grant Date

Stock Units

Grant Date

(000)

Fair Value

(000)

Fair Value

(000)

Fair Value












Outstanding and non-vested at beginning of year
15


$
59


11


$
52


16


$
44

Granted
16


62


16


59


14


52

Vested
(15
)

64


(12
)

52


(16
)

44

Forfeited








(3
)

49

Outstanding and non-vested at end of year
16


$
62


15


$
59


11


$
52

Aggregate grant date fair value
$
990




$
920




$
742



Total fair value of shares vested during the year
$
970




$
615




$
809




Year ended

December 31,
2019

December 31,
2018

December 31,
2017
Shared-based compensation for non-vested shares
$
970


$
775


$
608

Tax benefit for non-vested share compensation
$
244


$
195


$
216

Unrecognized compensation cost for non-vested shares
$
368






Weighted average period over which unrecognized compensation will be recognized (years)
0.4