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Share-Based Compensation (Tables)
 3 Months Ended
Mar. 31, 2015
Schedule of Stock Option Activity
A summary of the Company’s stock option activity as of March 31, 2015, and changes during the three months ended March 31, 2015, is presented in the following table:
 
Stock Options
Shares
 
Weighted
Average
Price
 
Weighted-Average
Remaining
Contractual Term
 
Aggregate
Intrinsic
Value
Outstanding at January 1, 2015
2,378,559

 
$
46.91

 
6.69
 
$
73,561,785

Granted
440,945

 
78.43

 
 
 
 
Exercised
(238,352
)
 
38.75

 
 
 
 
Forfeited
(12,082
)
 
57.62

 
 
 
 
Outstanding at March 31, 2015
2,569,070

 
$
53.03

 
7.15
 
$
59,729,867

Vested and expected to vest as of March 31, 2015
2,409,629

 
$
51.87

 
7.02
 
$
58,689,128

Exercisable at March 31, 2015
1,394,118

 
$
41.37

 
5.72
 
$
48,047,309
Stock Option  
Schedule of Weighted Average Option Fair Values and Assumptions
Weighted average option fair values and assumptions for the periods specified are disclosed below. The fair value of each option grant was estimated on the date of the grant using the Binomial lattice option pricing model.
 
 
 
 
 
 
 
 
 
Three Months Ended 
 March 31,
 
2015
 
2014
Weighted average fair value of option grants
$20.40
 
$19.53
Dividend yield
1.42%
 
1.26%
Volatility
29.94%
 
30.36%
Risk-free forward interest rate
0.23% - 2.75%
 
0.12% - 4.69%
Expected life (in years)
5.90
 
5.89
Schedule of Compensation Cost for Stock Options and Unvested Shares and Performance Share Units
Total compensation cost for stock options is as follows:
 
 
 
Three Months Ended 
 March 31,
 
 
2015
 
2014
Cost of goods sold
 
$
226

 
$
242

Selling, general and administrative expenses
 
2,197

 
2,190

Total expense before income taxes
 
2,423

 
2,432

Income tax benefit
 
(767
)
 
(755
)
Total expense after income taxes
 
$
1,656

 
$
1,677
Performance Shares  
Schedule of Weighted Average Option Fair Values and Assumptions
Weighted average performance share unit fair values and assumptions for the period specified are disclosed below. The performance share units are market condition awards and have been assessed at fair value on the date of grant using a Monte Carlo simulation model.
 
 
Three Months Ended March 31,
 
 
2015
 
2014
Weighted average fair value of performance share units
 
$95.07
 
$94.55
Dividend yield
 
0.00%
 
0.00%
Volatility
 
19.14%
 
26.41%
Risk-free forward interest rate
 
1.01%
 
0.65%
Expected life (in years)
 
2.86
 
2.88
Schedule of Compensation Cost for Stock Options and Unvested Shares and Performance Share Units
Total compensation cost for performance share units is as follows:
 
 
 
Three Months Ended 
 March 31,
 
 
2015
 
2014
Cost of goods sold
 
$
—

 
$
—

Selling, general and administrative expenses
 
1,342

 
661

Total expense before income taxes
 
1,342

 
661

Income tax benefit
 
(430
)
 
(186
)
Total expense after income taxes
 
$
912

 
$
475
Unvested Shares  
Schedule of Compensation Cost for Stock Options and Unvested Shares and Performance Share Units
Total compensation cost for unvested shares is as follows:
 
 
 
Three Months Ended 
 March 31,
 
 
2015
 
2014
Cost of goods sold
 
$
420

 
$
472

Selling, general and administrative expenses
 
2,697

 
2,746

Total expense before income taxes
 
3,117

 
3,218

Income tax benefit
 
(806
)
 
(687
)
Total expense after income taxes
 
$
2,311

 
$
2,531