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.

	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:

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
Outstanding at June 30, 2013		2,967,004		$	37.79		6.95	$	47,524,458
Vested and expected to vest at June 30, 2013		2,323,450		$	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:

	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	)
Total expense after income taxes	$	139		$	291

Stock Option

Schedule of Compensation Cost for Stock Options, 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,
	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
Total expense before income taxes		1,352			1,651			3,712			3,910
Income tax benefit		(445	)		(492	)		(1,182	)		(1,200	)
Total expense after income taxes	$	907		$	1,159		$	2,530		$	2,710

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:

	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	)
Total expense after income taxes	$	1,701		$	1,387		$	4,053		$	3,126