|
Share-Based Compensation (Tables)
|
6 Months Ended |
|
Jun. 30, 2013
|
| 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 grant using the Binomial
lattice option pricing model.
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|
|
|
| |
|
Three Months
Ended
June 30, |
| |
|
2013 |
|
2012 |
|
Weighted average fair value
of option grants
|
|
$ 13.28 |
|
$ 11.23 |
|
Dividend yield
|
|
1.51% |
|
1.83% |
|
Volatility
|
|
30.76% |
|
31.91% |
|
Risk-free forward interest
rate
|
|
0.14% - 3.94% |
|
0.19% - 3.99% |
|
Expected life (in
years)
|
|
5.84 |
|
5.92 |
|
|
|
|
|
| |
|
Six Months
Ended
June 30, |
| |
|
2013 |
|
2012 |
|
Weighted average fair value
of option grants
|
|
$ 12.85 |
|
$ 11.44 |
|
Dividend yield
|
|
1.57% |
|
1.58% |
|
Volatility
|
|
30.94% |
|
32.01% |
|
Risk-free forward interest
rate
|
|
0.17% - 4.10% |
|
0.17% - 3.98% |
|
Expected life (in
years)
|
|
5.87 |
|
5.98 |
|
| Schedule of Stock Option Activity |
A summary of the Company’s stock option activity as of
June 30, 2013, and changes during the six months ended
June 30, 2013 is presented in the following table:
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Stock
Options
|
|
Shares |
|
|
Weighted
Average
Price |
|
|
Weighted-Average
Remaining
Contractual
Term |
|
|
Aggregate
Intrinsic
Value |
|
|
Outstanding at
January 1, 2013
|
|
|
3,223,742 |
|
|
$ |
33.16 |
|
|
|
6.37 |
|
|
$ |
43,106,153 |
|
|
Granted
|
|
|
619,385 |
|
|
|
50.27 |
|
|
|
|
|
|
|
|
|
|
Exercised
|
|
|
(813,702 |
) |
|
|
28.60 |
|
|
|
|
|
|
|
|
|
|
Forfeited/Expired
|
|
|
(62,421 |
) |
|
|
42.10 |
|
|
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|
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|
|
|
|
|
|
|
|
Outstanding at
June 30, 2013
|
|
|
2,967,004 |
|
|
$ |
37.79 |
|
|
|
6.95 |
|
|
$ |
47,524,458 |
|
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|
|
|
|
|
|
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|
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|
Vested and expected to vest
at June 30, 2013
|
|
|
2,323,450 |
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|
$ |
37.33 |
|
|
|
6.71 |
|
|
$ |
38,284,375 |
|
|
Exercisable at
June 30, 2013
|
|
|
1,501,547 |
|
|
$ |
31.12 |
|
|
|
5.24 |
|
|
$ |
34,065,352 |
|
|
|
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, 2013 |
|
Weighted average fair value
of performance share units
|
|
$50.45 |
|
Dividend yield
|
|
0.00% |
|
Volatility
|
|
28.99% |
|
Risk-free forward interest
rate
|
|
0.40% |
|
Expected life (in
years)
|
|
2.87 |
|
| Schedule of Compensation Cost for Stock Options, Unvested Shares and Performance Share Units |
Total compensation cost for performance share units is as
follows:
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|
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| |
|
Three Months
Ended
June 30, 2013 |
|
|
Six Months
Ended
June 30, 2013 |
|
| |
|
(In
thousands) |
|
|
Cost of goods
sold
|
|
$ |
0 |
|
|
$ |
0 |
|
|
Selling, general and
administrative expenses
|
|
|
216 |
|
|
|
405 |
|
|
|
|
|
|
|
|
|
|
|
Total expense before income
taxes
|
|
|
216 |
|
|
|
405 |
|
|
Income tax
benefit
|
|
|
(77 |
) |
|
|
(114 |
) |
|
|
|
|
|
|
|
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|
Total expense after income
taxes
|
|
$ |
139 |
|
|
$ |
291 |
|
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|
Stock Option
|
|
| Schedule of Compensation Cost for Stock Options, Unvested Shares and Performance Share Units |
Total compensation cost for stock options is as
follows:
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|
|
|
|
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|
|
|
|
|
|
|
|
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| |
|
Three Months
Ended
June 30, |
|
|
Six Months
Ended
June 30, |
|
| |
|
2013 |
|
|
2012 |
|
|
2013 |
|
|
2012 |
|
| |
|
(In
thousands) |
|
|
Cost of goods
sold
|
|
$ |
99 |
|
|
$ |
189 |
|
|
$ |
291 |
|
|
$ |
482 |
|
|
Selling, general and
administrative expenses
|
|
|
1,253 |
|
|
|
1,462 |
|
|
|
3,421 |
|
|
|
3,428 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
Total expense before income
taxes
|
|
|
1,352 |
|
|
|
1,651 |
|
|
|
3,712 |
|
|
|
3,910 |
|
|
Income tax
benefit
|
|
|
(445 |
) |
|
|
(492 |
) |
|
|
(1,182 |
) |
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|
(1,200 |
) |
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|
|
|
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|
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|
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|
Total expense after income
taxes
|
|
$ |
907 |
|
|
$ |
1,159 |
|
|
$ |
2,530 |
|
|
$ |
2,710 |
|
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|
Unvested Shares
|
|
| Schedule of Compensation Cost for Stock Options, Unvested Shares and Performance Share Units |
Total compensation cost for the unvested shares is as
follows:
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months
Ended
June 30, |
|
|
Six Months
Ended
June 30, |
|
| |
|
2013 |
|
|
2012 |
|
|
2013 |
|
|
2012 |
|
| |
|
(In
thousands) |
|
|
Cost of goods
sold
|
|
$ |
212 |
|
|
$ |
197 |
|
|
$ |
614 |
|
|
$ |
603 |
|
|
Selling, general and
administrative expenses
|
|
|
2,098 |
|
|
|
1,667 |
|
|
|
4,758 |
|
|
|
3,663 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total expense before income
taxes
|
|
|
2,310 |
|
|
|
1,864 |
|
|
|
5,372 |
|
|
|
4,266 |
|
|
Income tax
benefit
|
|
|
(609 |
) |
|
|
(477 |
) |
|
|
(1,319 |
) |
|
|
(1,140 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
Total expense after income
taxes
|
|
$ |
1,701 |
|
|
$ |
1,387 |
|
|
$ |
4,053 |
|
|
$ |
3,126 |
|
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