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Share-Based Compensation (Tables)
 6 Months Ended
Jun. 30, 2014
Schedule of Stock Option Activity
A summary of the Company’s stock option activity as of June 30, 2014, and changes during the six months ended June 30, 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
505,950

 
72.75

 
 
 
 
Exercised
(254,815
)
 
34.71

 
 
 
 
Forfeited/Expired
(85,483
)
 
49.52

 
 
 
 
Outstanding at June 30, 2014
2,682,270

 
$
46.00

 
7.04
 
$
93,185,771

Vested and expected to vest as of June 30, 2014
2,521,604

 
$
45.12

 
6.93
 
$
89,815,814

Exercisable at June 30, 2014
1,372,277

 
$
36.13

 
5.55
 
$
61,210,657
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 
 June 30,
 
2014
 
2013
Weighted average fair value of option grants
$19.34
 
$13.28
Dividend yield
1.43%
 
1.51%
Volatility
30.43%
 
30.76%
Risk-free forward interest rate
0.10% - 4.17%
 
0.14% - 3.94%
Expected life (in years)
5.87
 
5.84
 
 
 
 
 
Six Months Ended 
 June 30,
 
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% - 4.67%
 
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 
 June 30,
 
Six Months Ended 
 June 30,
 
2014
 
2013
 
2014
 
2013
Cost of goods sold
$
133

 
$
99

 
$
375

 
$
291

Selling, general and administrative expenses
1,425

 
1,253

 
3,615

 
3,421

Total expense before income taxes
1,558

 
1,352

 
3,990

 
3,712

Income tax benefit
(496
)
 
(445
)
 
(1,251
)
 
(1,182
)
Total expense after income taxes
$
1,062

 
$
907

 
$
2,739

 
$
2,530
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,
 
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 
 June 30,
 
Six Months Ended 
 June 30,
 
2014
 
2013
 
2014
 
2013
Cost of goods sold
$
—

 
$
—

 
$
—

 
$
—

Selling, general and administrative expenses
823

 
216

 
1,484

 
405

Total expense before income taxes
823

 
216

 
1,484

 
405

Income tax benefit
(288
)
 
(77
)
 
(474
)
 
(114
)
Total expense after income taxes
$
535

 
$
139

 
$
1,010

 
$
291
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 
 June 30,
 
Six Months Ended 
 June 30,
 
2014
 
2013
 
2014
 
2013
Cost of goods sold
$
693

 
$
212

 
$
1,165

 
$
614

Selling, general and administrative expenses
2,578

 
2,098

 
5,324

 
4,758

Total expense before income taxes
3,271

 
2,310

 
6,489

 
5,372

Income tax benefit
(644
)
 
(609
)
 
(1,331
)
 
(1,319
)
Total expense after income taxes
$
2,627

 
$
1,701

 
$
5,158

 
$
4,053