Share-Based Compensation

9 Months Ended

Sep. 30, 2016

Share Based Compensation [Abstract]

Share-Based Compensation

NOTE 6 – Share-Based Compensation

The table below sets forth the line items where share-based compensation expense was recorded for the three and nine months ended September 30, 2016 and 2015:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2016		2015		2016		2015
Cost of goods sold	$	172	$	99	$	609	$	345
Selling, general and administrative		2,901		3,713		10,237		10,307
Research and development		684		287		1,991		1,003
Total share-based compensation expense	$	3,757	$	4,099	$	12,837	$	11,655

The table below sets forth share-based compensation expense by type for the three and nine months ended September 30, 2016 and 2015:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2016		2015		2016		2015
Stock options	$	304	$	517	$	1,212	$	1,999
Share grants		3,453		3,582		11,625		9,656
Total share-based compensation expense	$	3,757	$	4,099	$	12,837	$	11,655

Stock Options. Stock options generally vest in equal annual installments over a four-year period and expire eight years after the grant date.  Stock option expense was estimated on the date of grant using the Black-Scholes-Merton option pricing model.

There were no cash proceeds received from stock option exercises during the nine months ended September 30, 2016.

The table below sets forth a summary of stock option activity for the nine months ended September 30, 2016:

Stock Options	Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (years)		Aggregate Intrinsic Value
Outstanding at January 1, 2016		2,063		$	23.03		3.9	$	4,111
Granted		-			-		-		-
Exercised		-			-		-		-
Forfeited or expired		(210	)		22.39		-		-
Outstanding at September 30, 2016		1,853		$	23.10		3.6	$	2,712
Exercisable at September 30, 2016		1,726		$	22.86		3.5	$	2,712

The aggregate intrinsic value in the table above is before applicable income taxes and represents the amount option holders would have received if all options had been exercised on the last business day of the period indicated, based on our closing stock price.

As of September 30, 2016, total unrecognized share-based compensation expense related to unvested stock options, net of estimated forfeitures, was approximately $1.5 million, before income taxes, and is expected to be recognized over a weighted average period of approximately one year.

Share Grants. Restricted stock awards and restricted stock units generally vest in equal annual installments over a four-year period.

The table below sets forth a summary of restricted stock awards and restricted stock units for the nine months ended September 30, 2016:

Share Grants	Shares			Weighted Average Grant-Date Fair Value		Aggregate Intrinsic Value
Non-vested at January 1, 2016		2,679		$	23.51	$	61,247
Granted		873			18.60		-
Vested		(789	)		19.54		15,227
Forfeited		(57	)		20.59		-
Non-vested at September 30, 2016		2,706		$	21.05	$	57,742

As of September 30, 2016, total unrecognized share-based compensation expense related to non-vested restricted stock awards and restricted stock units, net of estimated forfeitures, was approximately $49.2 million, before income taxes, and is expected to be recognized over a weighted average period of approximately three years.