XML 72 R45.htm IDEA: XBRL DOCUMENT v3.6.0.2
Stock-Based Compensation (Tables)
 12 Months Ended
Dec. 31, 2016
Stock-Based Compensation [Abstract]  
Stock Option Valuation Assumptions
The fair value of stock option awards was estimated using the Black-Scholes option-pricing model with the following assumptions and weighted-average fair values as follows:

 
December 31,
Stock Options:
2014
 
2015
 
2016
      
Weighted average grant date fair value of grants
   $              23.01
 
  $              16.26
 
  $              12.59
Risk-free interest rate(1) 
                   1.7%
 
                   1.7%
 
                   1.4%
Dividend yield(2) 
                   1.9%
 
                   2.1%
 
                   2.3%
Expected volatility(3) 
                 45.4%
 
                 46.8%
 
                 47.9%
Expected life in months(4) 
         62 months
 
         65 months
 
         68 months
(1)
The risk-free interest rate is based upon the rate on a zero coupon U.S. Treasury bill, for periods within the contractual life of the option, in effect at the time of the grant.

(2)
The dividend yield is based on the average of historical stock prices and actual dividends paid.

(3)
Expected volatility is based on the historical volatility of the Company's stock price, over a period similar to the expected life of the option.

(4)
The expected term of the option is based on the historical employee exercise behavior, the vesting terms of the respective option, and a contractual life of either seven or ten years.
Stock Options
Options under the plans as of December 31, 2016 and changes during the year ended December 31, 2016 were as follows:

  
Shares
(in thousands)
  
Weighted-average Exercise Price
  
Weighted- average Remaining Contractual Term
(in years)
  
Aggregate Intrinsic Value
(in thousands)
 
             
Options activity – service based
            
Outstanding at December 31, 2015 
  
1,469.7
  
$
32.85
       
Granted 
  
1,465.9
   
34.59
       
Exercised 
  
(660.2
)
  
11.56
       
Forfeited/cancelled/expired 
  
(68.4
)
  
47.27
       
Outstanding at December 31, 2016 
  
2,207.0
   
39.93
   
5.07
   
27,021
 
Exercisable at December 31, 2016 
  
650.1
   
48.95
   
2.46
   
6,381
 
                 
Options activity – performance based
                
Outstanding at December 31, 2015 
  
3,598.7
  
$
61.10
         
Granted 
  
739.1
   
34.24
         
Exercised 
  
(385.7
)
  
30.47
         
Forfeited/cancelled/expired 
  
(226.2
)
  
72.74
         
Outstanding at December 31, 2016 
  
3,725.9
   
58.23
   
3.45
   
24,970
 
Exercisable at December 31, 2016 
  
900.5
   
31.67
   
0.96
   
14,760
 
                 
Options activity – all options
                
Outstanding at December 31, 2015 
  
5,068.4
  
$
52.91
         
Granted 
  
2,205.0
   
34.48
         
Exercised 
  
(1,045.9
)
  
18.54
         
Forfeited/cancelled/expired 
  
(294.6
)
  
66.82
         
Outstanding at December 31, 2016 
  
5,932.9
   
51.42
   
4.05
   
51,991
 
Exercisable at December 31, 2016 
  
1,550.6
   
38.91
   
1.59
   
21,141
 
Stock Options Exercised
Cash proceeds, tax benefits and intrinsic value related to total stock options exercised during 2014, 2015 and 2016, were as follows (U.S. dollars in thousands):

  
December 31,
 
  
2014
  
2015
  
2016
 
          
Cash proceeds from stock options exercised
 
$
11,042
  
$
13,041
  
$
15,707
 
Tax benefit realized for stock options exercised
  
11,947
   
4,451
   
3,840
 
Intrinsic value of stock options exercised
  
17,159
   
12,085
   
30,587
 
Nonvested Restricted Stock Awards
Nonvested restricted stock awards as of December 31, 2016 and changes during the year ended December 31, 2016 were as follows:

  
Number of Shares
(in thousands)
  
Weighted-average Grant Date Fair Value
 
       
Nonvested at December 31, 2015 
  
662.2
  
$
60.87
 
         
Granted 
  
220.9
   
39.62
 
Vested 
  
(210.3
)
  
58.20
 
Forfeited
  
(76.4
)
  
63.34
 
         
Nonvested at December 31, 2016 
  
596.4
   
53.62