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Stock-Based Compensation (Tables)
 3 Months Ended
Mar. 31, 2020
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 March 31,
(In thousands)
2020
 
2019
Cost of sales
$
74

 
$
28

Research and development expenses
236

 
220

Selling, general and administrative expenses:
 
 
 
Employees
1,583

 
1,424

Outside directors
410

 
246

Total employee and director stock-based compensation expense
$
2,303


$
1,918

 
 
 
 
Income tax benefit
$
506

 
$
399
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, 2019
745

 
$
41.73

 
 
 
 
Granted
109

 
46.17

 
 
 
 
Exercised
—

 
—

 
 
 
$
—

Forfeited/canceled/expired
—

 
—

 
 
 
 
Outstanding at March 31, 2020 (1)
854

 
$
42.29

 
4.13
 
$
4,070

Vested and expected to vest at March 31, 2020 (1)
854

 
$
42.29

 
4.13
 
$
4,070

Exercisable at March 31, 2020 (1)
592

 
$
43.66

 
3.10
 
$
2,933

(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 first quarter of 2020 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 March 31, 2020. 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 March 31,
 
2020
 
2019
Weighted average fair value of grants
$
17.70

 
$
10.28

Risk-free interest rate
1.44
%
 
2.49
%
Expected volatility
43.95
%
 
41.64
%
Expected life in years
4.59

 
4.54
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, 2019
310

 
$
34.99

Granted
198

 
35.11

Vested
(124
)
 
38.17

Forfeited
(1
)
 
36.06

Non-vested at March 31, 2020
383

 
$
34.02