Annual report pursuant to Section 13 and 15(d)

STOCK-BASED COMPENSATION (Tables)

v3.10.0.1
STOCK-BASED COMPENSATION (Tables)
 12 Months Ended
Dec. 31, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Total Stock-Based Compensation Expense
Total stock-based compensation expense in our Consolidated Statements of Income during the twelve months ended December 31, 2018, 2017 and 2016, was as follows:
 
 
Twelve Months Ended December 31,
 
 
2018
 
2017
 
2016
 
 
(In millions)
Cost of services
 
$
9.5

 
$
7.2

 
$
4.5

Selling, general and administrative expenses
 
33.0

 
31.1

 
32.6

Stock-based compensation expense, before income taxes
 
$
42.5

 
$
38.3

 
$
37.1

Assumptions Used to Estimate Fair Value of Stock Options Granted
The fair value for stock options granted during the twelve months ended December 31, 2018, 2017 and 2016, was estimated at the date of grant, using the binomial model with the following weighted-average assumptions:
 
Twelve Months Ended December 31,
 
2018
 
2017
 
2016
Dividend yield
1.2
%
 
1.9
%
 
1.2
%
Expected volatility
21.8
%
 
22.8
%
 
19.4
%
Risk-free interest rate
2.7
%
 
1.1
%
 
1.2
%
Expected term (in years)
4.8

 
4.8

 
4.8

Weighted-average fair value of stock options granted
$
24.34

 
$
22.20

 
$
20.62

Changes in Outstanding Options and Weighed-Average Exercise Price Per Share
The following table summarizes changes in outstanding stock options during the twelve months ended December 31, 2018, as well as stock options that are vested and expected to vest and stock options exercisable at December 31, 2018: 
 
Shares
 
Weighted-Average Exercise Price
 
Weighted-Average Remaining Contractual Term
 
Aggregate Intrinsic Value
 
(In thousands)
 
 
 
(In years)
 
(In millions)
Outstanding at December 31, 2017
1,184

 
$
87.64

 
 
 
 

Granted (all at market price)
553

 
$
122.35

 

 


Exercised
(212
)
 
$
60.55

 

 


Forfeited and canceled
(63
)
 
$
114.67

 

 


Outstanding at December 31, 2018
1,462

 
$
103.50

 
7.3
 
$
14.0

Vested and expected to vest at December 31, 2018
1,415

 
$
103.01

 
7.2
 
$
13.9

Exercisable at December 31, 2018
631

 
$
80.81

 
5.2
 
$
14.0

The following table summarizes changes in outstanding options and the related weighted-average exercise price per share for the twelve months ended December 31, 2017 and 2016:
 
December 31,
 
2017
 
2016
 
Shares
 
Weighted-
Average Price
 
Shares
 
Weighted-
Average Price
 
(In thousands)
 
 
 
(In thousands)
 
 
Outstanding at the beginning of the year
1,228

 
$
66.81

 
1,866

 
$
49.54

Granted (all at market price)
401

 
$
114.66

 
181

 
$
131.41

Exercised
(398
)
 
$
48.23

 
(779
)
 
$
40.61

Forfeited and canceled
(47
)
 
$
103.13

 
(40
)
 
$
72.06

Outstanding at the end of the year
1,184

 
$
87.64

 
1,228

 
$
66.81

Exercisable at end of year
636

 
$
62.62

 
856

 
$
48.43

Summary of Changes in Nonvested Stock and Weighted-Average Grant Date Fair Value
The following table summarizes changes in these other stock awards during the twelve months ended December 31, 2018, 2017 and 2016 and the related weighted-average grant date fair value:
 
Shares
 
Weighted-Average
Grant Date
Fair Value
 
(In thousands)
 
 

Nonvested at December 31, 2015
1,431

 
$
72.64

Granted
460

 
$
84.07

Vested
(645
)
 
$
55.28

Forfeited
(59
)
 
$
73.54

Nonvested at December 31, 2016
1,187

 
$
87.54

Granted
498

 
$
89.45

Vested
(632
)
 
$
56.53

Forfeited
(42
)
 
$
104.24

Nonvested at December 31, 2017
1,011

 
$
109.48

Granted
563

 
$
109.71

Vested
(417
)
 
$
87.09

Forfeited
(82
)
 
$
115.40

Nonvested at December 31, 2018
1,075

 
$
120.11