Annual report pursuant to Section 13 and 15(d)

STOCK-BASED COMPENSATION (Tables)

v3.19.3.a.u2
STOCK-BASED COMPENSATION (Tables)
 12 Months Ended
Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Share-based Payment Arrangement, Option, Activity [Table Text Block]
The following is an analysis of options to purchase shares of class A common stock issued and outstanding:
 
Shares
(in thousands)
 
Weighted-Average
Exercise
Price
 
Weighted-Average  Remaining
Contractual Term
(in years)
 
Aggregate Intrinsic
Value (in millions)
Outstanding at January 1, 2019
1,384

 
$
95.36

 
 
 
 
Exercised
(147
)
 
69.33

 
 
 
 
Granted
261

 
111.68

 
 
 
 
Forfeited / Expired
—

 
—

 
 
 
 
Outstanding at December 31, 2019
1,498

 
$
100.74

 
6.37
 
$
24

Options Vested and Expected to Vest
1,498

 
$
100.74

 
6.37
 
$
24

Exercisable at December 31, 2019
915

 
$
96.12

 
5.25
 
$
19


Share-based Payment Arrangement, Restricted Stock Unit, Activity [Table Text Block]
As of December 31, 2019, we had the following outstanding Restricted Units, including reinvested dividends, granted under the MIP:
 
Shares
(in thousands)
 
Weighted-Average
Grant Date
Fair Value
 
Weighted-Average  Remaining Contractual Term (in years)
 
Aggregate Intrinsic
Value  (in millions)
Nonvested at January 1, 2019
10,139

 
$
104.47

 
 
 
 
Vested
(5,100
)
 
102.54

 
 
 
 
Granted
5,516

 
108.78

 
 
 
 
Reinvested Dividends
410

 
N/A

 
 
 
 
Forfeited / Expired
(226
)
 
107.22

 
 
 
 
Nonvested at December 31, 2019
10,739

 
$
106.94

 
0.71
 
$
1,257

Restricted Units Expected to Vest
12,690

 
$
106.59

 
0.74
 
$
1,485


Share-based Payment Arrangement, Performance Shares, Outstanding Activity [Table Text Block]
As of December 31, 2019, we had the following Restricted Units outstanding, including reinvested dividends, that were granted under our LTIP program:
 
Shares
(in thousands)
 
Weighted-Average
Grant Date
Fair Value
 
Weighted-Average  Remaining
Contractual Term
(in years)
 
Aggregate Intrinsic
Value  (in millions)
Nonvested at January 1, 2019
1,701

 
$
108.63

 
 
 
 
Vested
(898
)
 
106.12

 
 
 
 
Granted
974

 
107.30

 
 
 
 
Reinvested Dividends
83

 
N/A

 
 
 
 
Forfeited / Expired
(169
)
 
108.60

 
 
 
 
Nonvested at December 31, 2019
1,691

 
$
109.18

 
1.54
 
$
198

Restricted Units Expected to Vest
1,677

 
$
109.16

 
1.55
 
$
196


Share-based Payment Arrangement, Option, Exercise Price Range [Table Text Block]
The following table summarizes information about stock options outstanding and exercisable at December 31, 2019:
 
Options Outstanding
 
Options Exercisable
Exercise Price Range
Shares
(in thousands)
 
Weighted-Average
Remaining Contractual Term
(in years)
 
Weighted-Average
Exercise
Price
 
Shares
(in thousands)
 
Weighted-Average
Exercise
Price
$65.01 - $80.00
157

 
1.52
 
$
74.06

 
157

 
$
74.06

$80.01 - $95.00
100

 
3.17
 
82.89

 
100

 
82.89

$95.01 - $110.00
985

 
6.75
 
103.93

 
635

 
103.09

$110.01 - $125.00
256

 
9.13
 
111.80

 
23

 
111.80

 
1,498

 
6.37
 
$
100.74

 
915

 
$
96.12


Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]
The weighted-average assumptions used by year, and the calculated weighted-average fair values of the RTSR portion of the grants, are as follows:
 
2019
 
2018
 
2017
Risk-free interest rate
2.23
%
 
2.61
%
 
1.46
%
Expected volatility
19.64
%
 
16.51
%
 
16.59
%
Weighted-average fair value of units granted
$
123.44

 
$
137.57

 
$
119.29

Share payout
115.04
%
 
123.47
%
 
113.55
%

The fair value of each option grant is estimated using the Black-Scholes option pricing model. The weighted-average assumptions used, by year, and the calculated weighted-average fair values of options, are as follows:
 
2019
 
2018
 
2017
Expected dividend yield
2.94
%
 
2.93
%
 
2.89
%
Risk-free interest rate
2.60
%
 
2.84
%
 
2.15
%
Expected life in years
7.5

 
7.5

 
7.5

Expected volatility
17.79
%
 
16.72
%
 
17.81
%
Weighted-average fair value of options granted
$
16.34

 
$
15.23

 
$
14.70