XML 85 R37.htm IDEA: XBRL DOCUMENT v3.8.0.1
Stock-Based Compensation (Tables)
 12 Months Ended
Dec. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Assumptions used to determine 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:
 
2017
 
2016
 
2015
Risk-free interest rate
1.97%
 
1.24%
 
1.37%
Expected life of option rights
5.05 years
 
5.05 years
 
5.05 years
Expected dividend yield
of stock
0.85%
 
1.06%
 
1.13%
Expected volatility of stock
.213
 
.212
 
.245
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:
 
2017
 
2016
 
2015
 
Optioned
Shares
 
Weighted-
Average
Exercise
Price
Per Share
 
Aggregate
Intrinsic
Value
 
Optioned
Shares
 
Weighted-
Average
Exercise
Price
Per Share
 
Aggregate
Intrinsic
Value
 
Optioned
Shares
 
Weighted-
Average
Exercise
Price
Per Share
 
Aggregate
Intrinsic
Value
Outstanding beginning
of year
5,163,709

 
$
163.61

 
 
 
5,219,506

 
$
141.58

 
 
 
5,699,892

 
$
117.31

 
 
Granted
689,506

 
377.84

 
 
 
712,967

 
271.46

 
 
 
697,423

 
241.84

 
 
Exercised
(1,154,698
)
 
123.16

 
 
 
(733,876
)
 
108.81

 
 
 
(1,133,287
)
 
79.41

 
 
Forfeited
(49,977
)
 
267.02

 
 
 
(26,653
)
 
232.83

 
 
 
(43,632
)
 
193.60

 
 
Expired
(2,227
)
 
236.97

 
 
 
(8,235
)
 
176.28

 
 
 
(890
)
 
87.59

 
 
Outstanding end of year
4,646,313

 
$
204.33

 
$
955,810

 
5,163,709

 
$
163.61

 
$
545,531

 
5,219,506

 
$
141.58

 
$
616,866

Exercisable at end of year
3,288,237

 
$
156.43

 
$
833,938

 
3,783,755

 
$
130.59

 
$
522,921

 
3,807,351

 
$
110.96

 
$
565,934
Summary of restricted stock and RSU activity
A summary of the Company’s RSU activity for the years ended December 31 is shown in the following table:
 
2017
 
2016
 
2015
Outstanding at beginning
of year
397,326

 
467,744

 
655,276

Granted
112,647

 
99,662

 
112,494

Exchanged Valspar awards (net of forfeitures)
51,009

 

 

Vested
(215,433
)
 
(166,405
)
 
(290,901
)
Forfeited
(9,753
)
 
(3,675
)
 
(9,125
)
Outstanding at end of year
335,796

 
397,326

 
467,744