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Stock-Based Compensation Plans
 3 Months Ended
Mar. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stock-Based Compensation Plans
Stock-Based Compensation Plans

As part of its long term compensation plans, the Company has granted stock options, performance awards and restricted stock. Detail of the outstanding awards and activity is presented below.

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, 2016
 
177,333

 
$
124.25

 
22,541

 
$
77.91

Exercised
 
(3,085
)
 
120.74

 
(4,181
)
 
129.72

Forfeited
 
—

 
—

 
—

 
—

Options Outstanding, March 31, 2017 (1)
 
174,248

 
$
124.31

 
18,360

 
$
66.11


__________________________________

(1)
All options outstanding are exercisable as of March 31, 2017.

Information with respect to performance awards granted is as follows:
 
 
Performance awards
 
Weighted average grant date fair value per award
Outstanding at December 31, 2016
 
251,163

 
$
136.74

  Granted (1)
 
81,708

 
176.59

  Change in awards based on performance (2)
 
49,323

 
119.26

  Converted to restricted stock
 
(128,482
)
 
118.75

  Forfeited
 
(792
)
 
160.39

Outstanding at March 31, 2017
 
252,920

 
$
155.27

__________________________________

(1)
The amount of restricted stock that ultimately may be earned is based on the total shareholder return metrics related to the Company's common stock for 49,374 performance awards and financial metrics related to operating performance and leverage metrics of the Company for 32,334 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:
 
 
2017
Dividend yield
 
3.2%
Estimated volatility over the life of the plan (1)
 
15.3% - 19.7%
Risk free rate
 
0.69% - 1.61%
Estimated performance award value based on total shareholder return measure
 
$175.86
__________________________________

(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 granted in 2017, for which achievement will be determined by using financial metrics, the compensation cost was based on a weighted average grant date value of $179.07, 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, 2016
 
136,705

 
$
158.51

 
176,698

  Granted - restricted stock shares
 
70,020

 
179.07

 
128,482

  Vested - restricted stock shares
 
(65,702
)
 
153.05

 
(69,149
)
  Forfeited
 
(236
)
 
173.73

 
—

Outstanding at March 31, 2017
 
140,787

 
$
171.25

 
236,031



Total employee stock-based compensation cost recognized in income was $3,986,000 and $3,742,000 for the three months ended March 31, 2017 and 2016, respectively, and total capitalized stock-based compensation cost was $2,078,000 and $3,048,000 for the three months ended March 31, 2017 and 2016, respectively. At March 31, 2017, there was a total unrecognized compensation cost of $45,637,000 for unvested restricted stock and performance awards, which does not include forfeitures, and is expected to be recognized over a weighted average period of 3.9 years.