Stock-Based Compensation Plans (Tables)

9 Months Ended

Sep. 30, 2021

Share-based Payment Arrangement [Abstract]

Share-based Payment Arrangement, Option, Activity

Information with respect to stock options granted under the Company's Second Amended and Restated 2009 Equity Incentive Plan (the "2009 Plan") for the three and nine months ended September 30, 2021, is as follows:

	2009 Plan shares	Weighted average exercise price per share
Options Outstanding, December 31, 2020	12,506	$	129.35
Exercised	(2,126)	121.78
Granted (1)	294,115	180.32
Forfeited	(4,713)	180.32
Options Outstanding, September 30, 2021	299,782	$	178.61
Options Exercisable, September 30, 2021	10,380	$	130.90

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(1)Includes 4,847 options resulting from recipient elections to receive a portion of earned restricted stock awards in the form of stock options.

Summary of valuation options

The assumptions used are as follows:

	2021
Dividend yield	3.5%
Estimated volatility	27.1%
Risk free rate	0.81%
Expected life of options	5 years
Estimated fair value	$28.64

The Company used a Monte Carlo model to assess the compensation cost associated with the portion of the performance awards granted in 2021 for which achievement will be determined by using total shareholder return measures. The assumptions used are as follows:

	2021
Dividend yield	3.5%
Estimated volatility over the life of the plan (1)	22.0% - 49.0%
Risk free rate	0.06% - 0.38%
Estimated performance award value based on total shareholder return measure	$213.16

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

Schedule of nonvested performance awards granted

Information with respect to performance awards granted is as follows:

	Performance awards	Weighted average grant date fair value per award
Outstanding at December 31, 2020	241,921	$	195.13
Granted (1)	138,033	191.12
Change in awards based on performance (2)	(37,469)	156.00
Converted to shares of common stock	(56,545)	156.00
Forfeited	(1,418)	207.65
Outstanding at September 30, 2021	284,522	$	206.05

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(1)The amount of shares of common stock that ultimately may be earned is based on the total shareholder return metrics related to the Company's common stock for 69,064 performance awards and financial metrics related to operating performance, net asset value and leverage metrics of the Company for 68,969 performance awards.

(2)Represents the change in the number of performance awards earned based on performance achievement for the performance period.

Schedule of restricted stock granted

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, 2020	131,724	$	203.28	146,319
Granted - restricted stock shares	96,834	177.49		—
Vested - restricted stock shares	(68,702)	192.07		(71,692)
Forfeited	(3,077)	193.47		—
Outstanding at September 30, 2021	156,779	$	192.45	74,627