Stock-Based Incentive Plans (Tables)

12 Months Ended

Dec. 31, 2019

Share-based Payment Arrangement [Abstract]

Schedule of Allocation of Share Based Compensation Costs by Expense Category

Amounts of stock-based compensation recognized on our consolidated statements of income (loss), by expense category, are as follows (in thousands):

	Year Ended December 31,
	2019		2018		2017
Cost of goods sold	$	1,343	$	1,060	$	450
Selling, general and administrative	25,588		19,393		16,118
Research and development	5,622		4,510		1,119
Stock-based compensation from continuing operations	32,553		24,963		17,687
Stock-based compensation from discontinued operations	—		1,960		1,375
Total stock-based compensation expense	32,553		26,923		19,062
Income tax benefit	6,590		6,443		4,236
Total expense, net of income tax benefit	$	25,963	$	20,480	$	14,826

Schedule of Allocation of Share-Based Compensation Costs by Type of Arrangement

Amounts of stock-based compensation expense recognized on our consolidated statements of income (loss), by type of arrangement, are as follows (in thousands):

	Year Ended December 31,
	2019		2018		2017
Service-based stock appreciation rights	$	10,349	$	8,282	$	6,916
Service-based restricted stock units	14,113		10,622		8,223
Market performance-based restricted stock units	2,900		2,357		732
Operating performance-based restricted stock units	3,918		3,702		1,816
Employee stock purchase plan	1,273		—		—
Total stock-based compensation expense from continuing operations	$	32,553	$	24,963	$	17,687

Schedule of Unrecognized Compensation Cost, Nonvested Awards

Amounts of stock-based compensation cost not yet recognized related to non-vested awards, including awards assumed or issued, as of December 31, 2019, are as follows (in thousands):

	Unrecognized Compensation Cost		Weighted Average Remaining Vesting Period (in years)
Service-based stock appreciation rights	$	25,508	2.67
Service-based restricted stock unit awards	33,456		2.73
Performance-based restricted stock unit awards	10,587		1.65
Total stock-based compensation cost unrecognized	$	69,551	2.35

Schedule of Stock Options Valuation Assumptions

The following table lists the assumptions we utilized as inputs to the Black-Scholes model:

	Year Ended December 31,
	2019	2018	2017
Dividend yield (1)	—	—	—
Risk-free interest rate (2)	1.4% - 2.2%	2.5% - 2.9%	1.7% - 2.2%
Expected option term - in years (3)	5.0 - 5.1	5.0 - 5.1	4.6 - 5.2
Expected volatility at grant date (4)	32.2% - 35.7%	29.2% - 29.9%	29.6% - 30.4%

(1) We have not paid dividends and no future dividends have been approved. 

(2) We use yield rates on U.S. Treasury securities for a period that approximates the expected term of the awards granted to estimate the risk-free interest rate.

(3) We estimated the expected term of the awards granted using historic data of actual time elapsed between the date of grant and the exercise or forfeiture of options or SARs for employees.

(4)

We determine the expected volatility of the awards based on historical volatility.

Schedule of Stock Option Activity

The following tables detail the activity for service-based SARs and stock option awards:

SARs and Stock Options	Number of Optioned Shares		Wtd. Avg. Exercise Price per Share		Wtd. Avg. Remaining Contractual Term (years)	Aggregate Intrinsic Value (in thousands) (1)
Outstanding — at December 31, 2018	1,941,587		$	67.33
Granted	591,845		96.60
Exercised	(121,534	)	61.50
Forfeited	(171,282	)	83.44
Expired	(25,560	)	72.60
Outstanding — at December 31, 2019	2,215,056		74.41		7.0	$	22,195
Fully vested and exercisable — end of year	951,797		61.45		5.2	$	15,495
Fully vested and expected to vest — end of year (2)	2,173,525		$	74.08	7.0	$	22,117

(1) The aggregate intrinsic value of SARs and options is based on the difference between the fair market value of the underlying stock at December 31, 2019, using the market closing stock price, and exercise price for in-the-money awards.

(2) Includes the impact of expected future forfeitures.

	Year Ended December 31,
	2019		2018		2017
Weighted average grant date fair value of SARs granted during the year (per share)	$	31.22	$	28.13	$	17.19
Aggregate intrinsic value of SARs and stock options exercised during the year (in thousands)	$	2,064	$	27,281	$	5,462

Summary of Restricted Stock Service-Based Activity

The following tables detail the activity for service-based RSU awards:

RSUs	Number of Shares		Wtd. Avg. Grant Date Fair Value
Non-vested shares at December 31, 2018	450,297		$	78.70
Granted	294,460		$	92.54
Vested	(147,969	)	$	74.53
Forfeited	(72,955	)	$	92.62
Non-vested shares at December 31, 2019	523,833		$	84.98

	Year Ended December 31,
	2019		2018		2017
Weighted average grant date fair value of service-based RSUs issued during the year (per share)	$	92.54	$	95.63	$	61.37
Aggregate fair value of RSUs that vested during the year (in thousands)	$	12,710	$	11,505	$	9,966

Summary of Performance-Based Restricted Stock and Restricted Stock Unit Activity

The following tables detail the activity for performance-based and market-based RSU awards:

Performance-based and market-based RSUs	Number of Shares		Wtd. Avg. Grant Date Fair Value
Non-vested shares at December 31, 2018	295,364		$	56.48
Granted	88,453		$	98.50
Vested	(69,646	)	$	41.52
Forfeited	(28,502	)	$	75.97
Non-vested shares at December 31, 2019	285,669		$	71.02

	Year Ended December 31,
	2019		2018		2017
Weighted average grant date fair value of performance and market-based restricted share units granted during the year (per share)	$	98.50	$	95.62	$	42.11
Aggregate fair value of performance and market-based restricted share units that vested during the year (in thousands)	$	6,697	$	9,409	$	110