Share-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2014

A summary of the Company’s stock option activity as of March 31, 2014, and changes during the three months ended March 31, 2014 is presented in the following table:



Stock Options	Shares		Weighted Average Price		Weighted-Average Remaining Contractual Term	Aggregate Intrinsic Value
Outstanding at January 1, 2014	2,516,618		$	39.60	6.87	$	86,200,655
Granted	486,505		72.74
Exercised	(180,617	)	34.08
Forfeited/Expired	(50,949	)	45.93
Outstanding at March 31, 2014	2,771,557		$	45.66	7.26	$	75,477,956
Vested and expected to vest at March 31, 2014	2,603,891		$	44.74	7.13	$	73,299,119
Exercisable at March 31, 2014	1,428,590		$	35.99	5.78	$	52,718,583

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 March 31,
	2014	2013
Weighted average fair value of option grants	$19.53	$12.85
Dividend yield	1.26%	1.57%
Volatility	30.36%	30.94%
Risk-free forward interest rate	0.12%-4.69%	0.17%-4.10%
Expected life (in years)	5.89	5.87

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 March 31,
	2014			2013
Cost of goods sold	$	242		$	192
Selling, general and administrative expenses	2,190			2,169
Total expense before income taxes	2,432			2,361
Income tax benefit	(755		)	(737		)
Total expense after income taxes	$	1,677		$	1,624

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 Months Ended March 31,
	2014	2013
Weighted average fair value of performance share units	$94.55	$50.45
Dividend yield	0.00%	0.00%
Volatility	26.41%	28.99%
Risk-free forward interest rate	0.65%	0.40%
Expected life (in years)	2.88	2.87

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 March 31,
	2014			2013
Cost of goods sold	$	—		$	—
Selling, general and administrative expenses	661			189
Total expense before income taxes	661			189
Income tax benefit	(186		)	(37		)
Total expense after income taxes	$	475		$	152

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 March 31,
	2014			2013
Cost of goods sold	$	472		$	402
Selling, general and administrative expenses	2,746			2,660
Total expense before income taxes	3,218			3,062
Income tax benefit	(687		)	(715		)
Total expense after income taxes	$	2,531		$	2,347