Share-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2020

Share-based Payment Arrangement [Abstract]

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,
	2020	2019
Weighted average fair value of grants	$34.34	$35.17
Dividend yield	1.15%	1.18%
Volatility	22.01%	24.79%
Risk-free interest rate	1.43% - 1.68%	2.53% - 3.05%
Expected life (in years)	5.80	5.87

Schedule of Compensation Cost for Stock Options

Total compensation cost for stock options is as follows:

	Three Months Ended March 31,
	2020			2019
Cost of goods sold	$	185		$	192
Selling, general and administrative expenses	3,145			2,540
Total expense before income taxes	3,330			2,732
Income tax benefit	(367		)	(368		)
Total expense after income taxes	$	2,963		$	2,364

Schedule of Stock Option Activity

A summary of the Company’s stock option activity as of March 31, 2020 and changes during the three months ended March 31, 2020 are presented in the following table:

Stock Options	Shares		Weighted Average Price		Weighted-Average Remaining Contractual Term	Aggregate Intrinsic Value
Outstanding at January 1, 2020	1,386,539		$	103.58	6.95	$	94,764,140
Granted	341,285		173.31
Exercised	(27,978	)	74.68
Forfeited	(22,665	)	131.64
Outstanding at March 31, 2020	1,677,181		$	117.88	7.36	$	48,014,239
Vested and expected to vest as of March 31, 2020	1,214,651		$	80.14	4.78	$	36,239,484
Exercisable at March 31, 2020	562,925		$	80.05	5.38	$	32,686,084

Schedule of Restricted Stock Activity

A summary of the Company’s restricted stock activity as of March 31, 2020 and changes during the three months ended March 31, 2020 are presented as follows:

Restricted Stock	Shares		Weighted-Average Grant Date Fair Value
Unvested at January 1, 2020	130,248		$	124.61
Granted	26,670		173.25
Vested	(37,761	)	94.52
Forfeited	(6,990	)	128.12
Unvested at March 31, 2020	112,167		$	146.01

Schedule of Compensation Cost for Restricted Stock

Total compensation cost for restricted stock awards is as follows:

	Three Months Ended March 31,
	2020			2019
Cost of goods sold	$	109		$	138
Selling, general and administrative expenses	982			1,288
Total expense before income taxes	1,091			1,426
Income tax benefit	(229		)	(275		)
Total expense after income taxes	$	862		$	1,151

Schedule of Unvested Cash-settled Restricted Stock Activity

Cash-settled restricted stock awards are recorded at fair value on a quarterly basis using the market price of the Company’s stock on the last day of the quarter. A summary of the Company’s unvested cash-settled restricted stock activity as of March 31, 2020 and changes during the three months ended March 31, 2020 are presented in the following table:

Cash-Settled Restricted Stock	Shares		Weighted-Average Fair Value
Unvested at January 1, 2020	74,560		$	172.08
Granted	20,365		173.35
Vested	(24,240	)	173.35
Forfeited	(805	)	138.11
Unvested at March 31, 2020	69,880		$	138.11

Schedule of Compensation Cost for Unvested Cash-settled Restricted Stock

Total compensation cost for cash-settled restricted stock is as follows:

	Three Months Ended March 31,
	2020			2019
Cost of goods sold	$	71		$	500
Selling, general and administrative expenses	189			1,530
Total expense before income taxes	260			2,030
Income tax benefit	(16		)	(187		)
Total expense after income taxes	$	244		$	1,843

Schedule of Weighted Average Performance Share Units 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,
	2020	2019
Weighted average fair value of grants	$224.14	$203.06
Dividend yield	—%	—%
Volatility	19.5%	19.08%
Risk-free interest rate	1.30%	2.53%
Expected life (in years)	2.94	2.84

Schedule of Performance Shares Units Activity

A summary of the Company’s performance share unit activity as of March 31, 2020 and changes during the three months ended March 31, 2020 are presented in the following table:

Performance Share Units	Shares		Weighted-Average Grant Date Fair Value
Unvested at January 1, 2020	100,575		$	178.97
Granted	42,690		224.14
Vested	—		—
Forfeited	(4,185	)	211.73
Unvested at March 31, 2020	139,080		$	215.46

Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs

Total compensation cost for performance share units is as follows:

	Three Months Ended March 31,
	2020			2019
Cost of goods sold	$	—		$	—
Selling, general and administrative expenses	2,049			1,372
Total expense before income taxes	2,049			1,372
Income tax benefit	(49		)	(48		)
Total expense after income taxes	$	2,000		$	1,324