Quarterly report pursuant to Section 13 or 15(d)

STOCK-BASED COMPENSATION (Tables)

v3.8.0.1
STOCK-BASED COMPENSATION (Tables)
 9 Months Ended
Sep. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Fair Value of Employee Stock Options Granted and Determined by Black-Scholes Valuation Model Assumptions
The fair value of each option grant is estimated using the Black-Scholes option pricing model. The weighted-average assumptions used and the calculated weighted-average fair values of options granted in 2017 and 2016 are as follows:
 
2017
 
2016
Expected dividend yield
2.89
%
 
2.95
%
Risk-free interest rate
2.15
%
 
1.62
%
Expected life (in years)
7.5

 
7.5

Expected volatility
17.81
%
 
22.40
%
Weighted-average fair value of options granted
$
14.70

 
$
16.46

The weighted-average assumptions used and the calculated weighted-average fair values of the RTSR portion of the LTIP awards granted in 2017 and 2016 are as follows:
 
2017
 
2016
Risk-free interest rate
1.46
%
 
1.00
%
Expected volatility
16.59
%
 
16.46
%
Weighted-average fair value of units granted
$
119.29

 
$
136.18

Share payout
113.55
%
 
129.08
%