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Stock-Based Compensation
 6 Months Ended
Jun. 30, 2014
Stock-Based Compensation [Abstract]  
Stock-Based Compensation

13.STOCK-BASED COMPENSATION

Stock Options

The Company records compensation expense for employee stock options based on the estimated fair value of the options on the date of grant using the Black-Scholes option-pricing model with the assumptions included in the table below. The Company uses a combination of historical data and historical volatility to establish the expected volatility. Historical data is used to estimate the expected option life and the expected forfeiture rate. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant for the estimated life of the option. The following assumptions were used to estimate the fair value of options granted using the Black-Scholes option-pricing model:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the six months ended

 

 

 

 

 

 

June 30,

 

 

 

 

 

 

2014

 

 

2013

Risk free interest rate

 

 

 

 

 

1.15% - 1.325%

 

 

0.51% - 1.03%

Dividend yield

 

 

 

 

 

0.0%

 

 

0.0%

Expected volatility

 

 

 

 

 

22.0%

 

 

25.0% - 29.0%

Expected lives

 

 

 

 

 

4.4 years

 

 

3.9 - 4.8 years

 

The following table summarizes the Company’s activities with respect to its stock option plans for the six months ended June 30, 2014 as follows (dollars and number of shares in thousands, except for per share data):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-

 

 

 

 

 

 

 

Weighted-

 

Average

 

 

 

 

 

 

 

Average

 

Remaining

 

 

 

 

 

Number

 

Exercise Price

 

Contractual

 

Aggregate

 

 

of Shares

 

Per Share

 

Life (in years)

 

Intrinsic Value

Outstanding at December 31, 2013

 
2,979 

 

$
48.30 

 

 

 

 

 

Granted

 
1,115 

 

$
95.47 

 

 

 

 

 

Exercised

 
(571)

 

$
36.55 

 

 

 

 

 

Canceled

 
(23)

 

$
79.48 

 

 

 

 

 

Outstanding at June 30, 2014

 
3,500 

 

$
65.03 

 
5.0 

 

$
130,412 

Exercisable at June 30, 2014

 
1,247 

 

$
40.16 

 
3.2 

 

$
77,482 

Unvested at June 30, 2014

 
2,253 

 

$
78.80 

 
5.9 

 

$
52,930 

 

The weighted-average fair value of options granted during the six months ended June 30, 2014 and 2013 was $19.48 and $17.34, respectively. The total intrinsic value for options exercised during the six months ended June 30, 2014 and 2013 was $33.8 million and $23.2 million, respectively.

Restricted Stock Units

The following table summarizes the Company’s restricted stock unit activity for the six months ended June 30, 2014:  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-

 

 

 

 

Average

 

 

 

 

Grant Date

 

 

Number of

 

Fair Value per

 

 

Units

 

Share

 

 

(in thousands)

 

 

 

Outstanding at December 31, 2013

 
305 

 

$
55.60 

Granted

 
117 

 

$
95.51 

Vested

 
(120)

 

$
50.11 

Forfeited/canceled

 
(3)

 

$
76.06 

Outstanding at June 30, 2014

 
299 

 

$
73.25