Share-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2015

A summary of the Company’s stock option activity as of September 30, 2015, and changes during the nine months ended September 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	514,780		78.27
Exercised	(377,056	)	39.98
Forfeited	(158,235	)	65.74
Outstanding at September 30, 2015	2,358,048		$	53.60	6.75	$	45,576,807
Vested and expected to vest as of September 30, 2015	2,242,169		$	52.62	6.64	$	45,214,008
Exercisable at September 30, 2015	1,285,586		$	41.73	5.33	$	38,206,259

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 September 30,
	2015	2014
Weighted average fair value of option grants	$19.98	$20.34
Dividend yield	1.65%	1.44%
Volatility	29.64%	30.24%
Risk-free forward interest rate	0.29%-3.37%	0.12%-3.67%
Expected life (in years)	6.16	5.87




	Nine Months Ended September 30,
	2015	2014
Weighted average fair value of option grants	$20.34	$19.54
Dividend yield	1.44%	1.26%
Volatility	29.91%	30.36%
Risk-free forward interest rate	0.24%-2.82%	0.12% - 4.66%
Expected life (in years)	5.93	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 September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
Cost of goods sold	$	91		$	126		$	441		$	501
Selling, general and administrative expenses	1,297			1,411			4,987			5,026
Total expense before income taxes	1,388			1,537			5,428			5,527
Income tax benefit	(440		)	(492		)	(1,709		)	(1,743		)
Total expense after income taxes	$	948		$	1,045		$	3,719		$	3,784

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 Nine Months Ended September 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 September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
Cost of goods sold	$	—		$	—		$	—		$	—
Selling, general and administrative expenses	953			843			3,478			2,327
Total expense before income taxes	953			843			3,478			2,327
Income tax benefit	(323		)	(294		)	(1,161		)	(768		)
Total expense after income taxes	$	630		$	549		$	2,317		$	1,559

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 September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
Cost of goods sold	$	38		$	259		$	778		$	1,424
Selling, general and administrative expenses	613			1,843			5,051			7,167
Total expense before income taxes	651			2,102			5,829			8,591
Income tax benefit	(212		)	(447		)	(1,490		)	(1,778		)
Total expense after income taxes	$	439		$	1,655		$	4,339		$	6,813