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Stock-Based Compensation
 3 Months Ended
Mar. 31, 2017
Stock-Based Compensation [Abstract]  
Stock-Based Compensation



12.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. 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 three months ended



 

 

 

 

 

March 31,



 

 

 

 

 

2017

 

 

2016



 

 

 

 

 

 

 

 

 

Risk free interest rate

 

 

 

 

 

1.91%

 

 

1.33% - 1.43%

Dividend yield

 

 

 

 

 

0.0%

 

 

0.0%

Expected volatility

 

 

 

 

 

20%

 

 

20%

Expected lives

 

 

 

 

 

4.6 years

 

 

4.7 years



The following table summarizes the Company’s activities with respect to its stock option plans for the three months ended March 31, 2017 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, 2016

 

 4,447 

 

$

 93.09 

 

 

 

 

 

Granted

 

 1,149 

 

$

 115.17 

 

 

 

 

 

Exercised

 

 (213)

 

$

 62.99 

 

 

 

 

 

Canceled

 

 (20)

 

$

 102.89 

 

 

 

 

 

Outstanding at March 31, 2017

 

 5,363 

 

$

 98.98 

 

 5.0 

 

$

 118,838 

Exercisable at March 31, 2017

 

 2,451 

 

$

 87.48 

 

 3.8 

 

$

 82,673 

Unvested at March 31, 2017

 

 2,912 

 

$

 108.66 

 

 6.0 

 

$

 36,165 



The weighted-average per share fair value of options granted during the three months ended March 31, 2017 was $23.84. The total intrinsic value for options exercised during the three months ended March 31, 2017 was $11.0 million.

Restricted Stock Units

The following table summarizes the Company’s restricted stock unit activity for the three months ended March 31, 2017:  





 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

Weighted-



 

 

 

 

 

 

 

 

Average



 

 

 

 

 

 

 

 

Grant Date



 

 

 

 

 

 

Number of

 

Fair Value per



 

 

 

 

 

 

Shares

 

Share



 

 

 

 

 

 

(in thousands)

 

 

 

Outstanding at December 31, 2016

 

 

 

 

 

 

 291 

 

$

 101.74 

Granted

 

 

 

 

 

 

 161 

 

$

 115.17 

Vested

 

 

 

 

 

 

 (115)

 

$

 98.50 

Forfeited/canceled

 

 

 

 

 

 

 (2)

 

$

 105.21 

Outstanding at March 31, 2017

 

 

 

 

 

 

 335 

 

$

 109.29