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Stock-Based Compensation Plans
 3 Months Ended
Mar. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stock-Based Compensation Plans
Stock-Based Compensation Plans

Information with respect to stock options granted under the Company’s 1994 Stock Option and Incentive Plan (the “1994 Plan”) and its 2009 Stock Option and Incentive Plan (the “2009 Plan”) is as follows:
 
 
2009 Plan
shares
 
Weighted average
exercise price
per share
 
1994 Plan
shares
 
Weighted average
exercise price
per share
Options Outstanding, December 31, 2015
 
249,178

 
$
122.17

 
82,195

 
$
103.27

Exercised
 
(6,660
)
 
126.99

 
(7,870
)
 
100.36

Forfeited
 
—

 
—

 
—

 
—

Options Outstanding, March 31, 2016
 
242,518

 
$
122.04

 
74,325

 
$
103.57

Options Exercisable, March 31, 2016
 
242,518

 
$
122.04

 
74,325

 
$
103.57



Information with respect to performance awards granted is as follows:
 
 
Performance awards
 
Weighted average grant date fair value per award
Outstanding at December 31, 2015
 
238,266

 
$
119.65

  Granted (1)
 
93,031

 
141.88

  Change in awards based on performance (2)
 
36,091

 
91.57

  Converted to restricted stock
 
(115,618
)
 
91.57

  Forfeited
 
(494
)
 
151.82

Outstanding at March 31, 2016
 
251,276

 
$
136.71

__________________________________

(1)
The amount of restricted stock ultimately earned is based on the total shareholder return metrics related to the Company’s common stock for 60,229 performance awards and financial metrics related to operating performance and leverage metrics of the Company for 32,802 performance awards.
(2)
Represents the change in the number of performance awards earned based on performance achievement.

The Company used a Monte Carlo model to assess the compensation cost associated with the portion of the performance awards determined by using total shareholder return measures. The assumptions used are as follows:
 
 
2016
Dividend yield
 
3.3%
Estimated volatility over the life of the plan (1)
 
15.2% - 22.8%
Risk free rate
 
0.44% - 0.88%
Estimated performance award value based on total shareholder return measure
 
$131.24
__________________________________

(1)
Estimated volatility over the life of the plan is using 50% historical volatility and 50% implied volatility.

For the portion of the performance awards determined by using financial metrics, the compensation cost was based on the grant date value of $161.56, and the Company's estimate of corporate achievement for the financial metrics.

Information with respect to restricted stock granted is as follows:
 
 
Restricted stock shares
 
Restricted stock shares weighted average grant date fair value per share
 
Restricted stock shares converted from performance awards
Outstanding at December 31, 2015
 
147,884

 
$
146.21

 
98,347

  Granted
 
77,553

 
161.56

 
115,618

  Vested
 
(79,408
)
 
140.65

 
(36,505
)
  Forfeited
 
(499
)
 
152.87

 
—

Outstanding at March 31, 2016
 
145,530

 
$
157.40

 
177,460


Total employee stock-based compensation cost recognized in income was $3,742,000 and $3,883,000 for the three months ended March 31, 2016 and 2015, respectively, and total capitalized stock-based compensation cost was $3,048,000 and $3,244,000 for the three months ended March 31, 2016 and 2015, respectively. At March 31, 2016, there was a total unrecognized compensation cost of $40,083,000 for unvested restricted stock and performance awards, which does not include estimated forfeitures, and is expected to be recognized over a weighted average period of 3.9 years.