Share-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2014

Schedule of Share-Based Compensation Expense

The following table shows the total compensation cost charged as an expense for share-based compensation plans, including stock options and share grants, recognized in the statements of income for the years ended December 31, 2014, 2013 and 2012:

	2014		2013		2012
Cost of goods sold	$	438	$	522	$	458
Selling, general and administrative expense		12,438		11,645		12,715
Research and development expense		1,228		1,384		1,225

Total share-based compensation expense	$	14,104	$	13,551	$	14,398

Schedule of Share Based Payment Award Stock Options Valuation Assumptions

Share-based compensation expense for stock options granted during 2014, 2013 and 2012 was calculated on the date of grant using the Black-Scholes-Merton option-pricing model with the following weighted-average assumptions:

	2014			2013			2012
Expected volatility		53.36	%		53.36	%		53.86	%
Expected term (years)		7.2			7.2			7.5
Risk free interest rate		2.08	%		1.49	%		1.16	%
Forfeiture rate		0.00	%		0.78	%		0.76	%

Schedule of Share Based Compensation Stock Options Activity

A summary of our stock option plans is as follows:

Stock Options	Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (years)		Aggregate Intrinsic Value
Outstanding at January 1, 2012		3,587		$	16.69
Granted		402			19.31
Exercised		(274	)		4.81
Forfeited or expired		(2	)		20.10
Outstanding at December 31, 2012		3,713			17.85
Exercisable at December 31, 2012		2,715			16.48

Outstanding at January 1, 2013		3,713			17.85
Granted		186			23.35
Exercised		(341	)		7.70
Forfeited or expired ⁽¹⁾		(432	)		20.34
Outstanding at December 31, 2013		3,126			18.93
Exercisable at December 31, 2013		2,509			18.01

Outstanding at January 1, 2014		3,126			18.93
Granted		176			27.92
Exercised		(564	)		10.37			$	10,090
Forfeited or expired		(2	)		29.21
Outstanding at December 31, 2014		2,736		$	21.26		4.0	$	17,840
Exercisable at December 31, 2014		2,205		$	20.49		3.3	$	16,036

⁽¹⁾

The Compensation Committee of the Board of Directors reviewed the grants of stock options to the Chief Executive Officer (“CEO”) in 2009, 2010, 2011 and 2012 (each such annual grant, an “Option Grant”), and approved a Confirmation Agreement, dated April 1, 2013, in which we and our CEO agreed and confirmed that our CEO will assert no claim that any Option Grant in 2009, 2010, 2011 or 2012 provided for the purchase of more than 100,000 shares of our Common Stock, and that each Option Grant document be deemed amended to reflect the foregoing 100,000 share limitation.

Schedule of Share Based Compensation by Plan

The following table summarizes information about stock options outstanding at December 31, 2014:

Plan	Range of exercise prices		Number outstanding		Weighted average remaining contractual life (years)		Weighted average exercise price
2001 Plan	$	11.53-29.21		2,377		3.6	$	20.61
2013 Plan	$	23.35-27.92		358		6.9	$	25.60

The following summarizes information about stock options exercisable at December 31, 2014:

Plan	Range of exercise prices		Number exercisable		Weighted average remaining contractual life (years)	Weighted average exercise price
2001 Plan	$	11.53-29.21		2,160	3.2	$	20.43
2013 Plan	$	23.35		46	6.4	$	23.35

Schedule of Nonvested Restricted Stock Units Activity

A summary of our non-vested share grants in 2014, 2013 and 2012 are presented below:

Restricted Stock Grants	Shares			Weighted Average Grant Date Fair Value		Aggregate Intrinsic Value
Nonvested at January 1, 2012		1,024		$	21.48
Granted		482			18.95
Vested		(305	)		21.48
Forfeited		(37	)		21.67
Nonvested at December 31, 2012		1,164		$	20.42

Nonvested at January 1, 2013		1,164		$	20.42
Granted		453			24.66
Vested		(428	)		19.90
Forfeited		(58	)		21.66
Nonvested at December 31, 2013		1,131		$	22.35

Nonvested at January 1, 2014		1,131		$	22.35
Granted		788			25.08
Vested		(346	)		22.34	$	9,974
Forfeited		(38	)		24.98
Nonvested at December 31, 2014		1,535		$	27.58	$	42,324

- Definition

Tabular disclosure of components of a stock option or other award plan under which equity-based compensation is awarded to employees, typically comprised of the amount of unearned compensation (deferred compensation cost), compensation expense, and changes in the quantity and fair value of the shares (or other type of equity) granted, exercised, forfeited, and issued and outstanding pertaining to that plan. Disclosure may also include nature and general terms of such arrangements that existed during the period and potential effects of those arrangements on shareholders, effect of compensation cost arising from equity-based payment arrangements on the income statement, method of estimating the fair value of the goods or services received, or the fair value of the equity instruments granted, during the period, cash flow effects resulting from equity-based payment arrangements and, for registrants that accelerate vesting of out of the money share options, reasons for the decision to accelerate.

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