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Stock-Based Compensation (Tables)
 9 Months Ended
Sep. 30, 2019
Share-based Payment Arrangement [Abstract]  
Stock-based Compensation Expense and Related Income Tax Benefit
Stock-based compensation expense by statement of operations caption and the related income tax benefit were as follows:
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
(In thousands)
2019
 
2018
 
2019
 
2018
Cost of sales
$
37

 
$
21

 
$
102

 
$
61

Research and development expenses
315

 
200

 
809

 
556

Selling, general and administrative expenses:
 
 
 
 
 
 
 
Employees
1,866

 
1,671

 
5,005

 
4,936

Outside directors
309

 
247

 
802

 
1,255

Total employee and director stock-based compensation expense
$
2,527


$
2,139


$
6,718


$
6,808

 
 
 
 
 
 
 
 
Income tax benefit
$
509

 
$
441

 
$
1,385

 
$
1,423
Stock Option Activity
Stock option activity was as follows:
 
Number of Options
(in 000's)
 
Weighted-Average Exercise Price
 
Weighted-Average Remaining Contractual Term
(in years)
 
Aggregate Intrinsic Value
(in 000's)
Outstanding at December 31, 2018
597

 
$
44.27

 
 
 
 
Granted
150

 
27.07

 
 
 
 
Exercised
(20
)
 
20.55

 
 
 
$
494

Forfeited/canceled/expired
—

 
—

 
 
 
 
Outstanding at September 30, 2019 (1)
727

 
$
41.36

 
4.06
 
$
9,149

Vested and expected to vest at September 30, 2019(1)
727

 
$
41.36

 
4.06
 
$
9,149

Exercisable at September 30, 2019(1)
501

 
$
44.56

 
3.19
 
$
5,201

(1) 
The aggregate intrinsic value represents the total pre-tax value (the difference between our closing stock price on the last trading day of the third quarter of 2019 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had they all exercised their options on September 30, 2019. This amount will change based on the fair market value of our stock.
Assumptions Used in Valuation and Weighted Average Fair Value of Stock Option Grants
The assumptions we utilized in the Black-Scholes option pricing model and the resulting weighted average fair value of stock option grants were the following:
 
Three Months Ended September 30,
Nine Months Ended September 30,
 
2019
 
2018
2019
 
2018
Weighted average fair value of grants
$
—

 
$
—

$
10.28

 
$
14.26

Risk-free interest rate
—
%
 
—
%
2.49
%
 
2.51
%
Expected volatility
—
%
 
—
%
41.64
%
 
33.09
%
Expected life in years
0.00

 
0.00

4.54

 
4.53
Non-Vested Restricted Stock Award Activity
Non-vested restricted stock award activity was as follows:
 
Shares
(in 000's)
 
Weighted-Average Grant Date Fair Value
Non-vested at December 31, 2018
204

 
$
49.23

Granted
263

 
30.26

Vested
(124
)
 
47.43

Forfeited
(19
)
 
36.29

Non-vested at September 30, 2019
324

 
$
35.23