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Share-Based Compensation (Tables)
 6 Months Ended
Jun. 30, 2015
Schedule of Stock Option Activity
A summary of the Company’s stock option activity as of June 30, 2015, and changes during the six months ended June 30, 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
459,830

 
78.40

 
 
 
 
Exercised
(338,195
)
 
39.93

 
 
 
 
Forfeited
(53,310
)
 
61.85

 
 
 
 
Outstanding at June 30, 2015
2,446,884

 
$
53.47

 
6.95
 
$
61,436,539

Vested and expected to vest as of June 30, 2015
2,309,595

 
$
52.41

 
6.83
 
$
60,453,367

Exercisable at June 30, 2015
1,317,492

 
$
41.61

 
5.52
 
$
48,706,596
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 
 June 30,
 
 
2015
 
2014
Weighted average fair value of option grants
 
$19.49
 
$19.34
Dividend yield
 
1.65%
 
1.43%
Volatility
 
29.87%
 
30.43%
Risk-free forward interest rate
 
0.26% - 3.11%
 
0.10% - 4.17%
Expected life (in years)
 
5.90
 
5.87
 
 
 
 
 
 
 
Six Months Ended 
 June 30,
 
 
2015
 
2014
Weighted average fair value of option grants
 
$20.39
 
$19.53
Dividend yield
 
1.42%
 
1.26%
Volatility
 
29.94%
 
30.36%
Risk-free forward interest rate
 
0.23% - 2.75%
 
0.12% - 4.67%
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 
 June 30,
 
Six Months Ended 
 June 30,
 
2015
 
2014
 
2015
 
2014
Cost of goods sold
$
124

 
$
133

 
$
350

 
$
375

Selling, general and administrative expenses
1,494

 
1,425

 
3,690

 
3,615

Total expense before income taxes
1,618

 
1,558

 
4,040

 
3,990

Income tax benefit
(502
)
 
(496
)
 
(1,269
)
 
(1,251
)
Total expense after income taxes
$
1,116

 
$
1,062

 
$
2,771

 
$
2,739
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 and Six Months Ended June 30,
 
 
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 
 June 30,
 
Six Months Ended 
 June 30,
 
2015
 
2014
 
2015
 
2014
Cost of goods sold
$
—

 
$
—

 
$
—

 
$
—

Selling, general and administrative expenses
1,183

 
823

 
2,525

 
1,484

Total expense before income taxes
1,183

 
823

 
2,525

 
1,484

Income tax benefit
(408
)
 
(288
)
 
(838
)
 
(474
)
Total expense after income taxes
$
775

 
$
535

 
$
1,687

 
$
1,010
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 
 June 30,
 
Six Months Ended 
 June 30,
 
2015
 
2014
 
2015
 
2014
Cost of goods sold
$
320

 
$
693

 
$
799

 
$
1,165

Selling, general and administrative expenses
1,741

 
2,578

 
4,438

 
5,324

Total expense before income taxes
2,061

 
3,271

 
5,237

 
6,489

Income tax benefit
(472
)
 
(644
)
 
(1,278
)
 
(1,331
)
Total expense after income taxes
$
1,589

 
$
2,627

 
$
3,959

 
$
5,158