Nature of Business and Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2018

Reconciliation of the numerator and denominator utilized in the computation of basic and diluted earnings per share

The following table sets forth the reconciliation of the numerator and denominator utilized in the computation of basic and diluted earnings per share (in thousands):



	Year Ended December 31,
	2018		2017		2016
Numerator for earnings per share:
Net earnings for basic and diluted earnings per share	$	282,425	$	107,223	$	166,626
Denominator for earnings per share:
Weighted average number of common shares outstanding	137,815		137,456		137,138
Assumed exercise of stock options and vesting of restricted stock awards, net of shares assumed reacquired under the treasury stock method	2,394		2,190		1,359
Diluted shares outstanding	140,209		139,646		138,497

The effect of stock-based compensation awards for the years ended December 31, 2018, 2017 and 2016 that aggregated 10,000, 39,000 and 233,000 shares, respectively, have been excluded for purposes of diluted earnings per share since the effect of their inclusion would have been anti-dilutive.

Supplemental cash flow disclosure

Supplemental cash flow disclosure (in thousands)



	Year Ended December 31,
	2018		2017		2016
Cash paid for:
Interest	$	14,183	$	15,394	$	15,815
Taxes	$	83,259	$	72,340	$	32,465

Stock-based compensation expense and related tax benefit recognized in the Consolidated Statements of Income and capitalized in the Consolidated Balance Sheets

The following table sets forth the stock-based compensation expense recognized in the Consolidated Statements of Income for the years ended December 31, 2018, 2017 and 2016 (in thousands):



	Year Ended December 31,
	2018		2017		2016
Cost of goods sold	$	3,157	$	2,665	$	3,103
Research and development	6,697		5,068		4,815
Selling, general and administrative	24,316		23,285		19,879
Stock-based compensation expense before income taxes	$	34,170	$	31,018	$	27,797

Stock-based compensation expense capitalized in the Consolidated Balance Sheets as of December 31, 2018, 2017 and 2016 is as follows (in thousands):



	December 31,
	2018		2017		2016
Capitalized in inventory	$	1,080	$	1,062	$	567

Fair value of the stock-based awards granted weighted-average assumptions

The fair value of the stock-based awards granted in the years ended December 31, 2018, 2017 and 2016 was estimated with the following weighted-average assumptions:



	2018		2017		2016
Stock option awards:
Risk-free interest rate	—		1.8	%	0.9	%
Expected dividend yield	—		1.6	%	1.6	%
Expected term	—		6.0 years		4.3 years
Expected volatility	—		26.6	%	25.6	%
Performance-based restricted stock awards:
Expected dividend yield	1.2	%	1.6	%	1.6	%
Discount for illiquidity	—		—		9.9	%
Market-based restricted stock awards:
Risk-free interest rate	—		—		0.9	%
Expected dividend yield	—		—		1.6	%
Expected term	—		—		4.0 years
Expected volatility	—		—		25.8	%
Expected volatility of S&P 500	—		—		25.0	%
Discount for illiquidity	—		—		9.9	%
Employee stock purchase plan:
Risk-free interest rate	2.3	%	1.0	%	0.5	%
Expected dividend yield	1.3	%	1.6	%	1.5	%
Expected term	6 months		6 months		6 months
Expected volatility	26.4	%	20.9	%	27.0	%
Discount for illiquidity	10.5	%	10.5	%	10.5	%

Fair value of the stock-based awards granted and vested, and intrinsic value of options exercised

The weighted-average fair value of stock-based compensation awards granted and vested, and the intrinsic value of options exercised during the period were (in thousands, except per share amounts):



	Years Ended December 31,
	2018		2017		2016
Stock option awards:
Weighted average grant date fair value per share	—		$	8.55	$	5.68
Total fair value of awards granted	—		$	2,824	$	4,716
Total fair value of awards vested	$	2,529	$	4,203	$	4,407
Total intrinsic value of options exercised	$	24,652	$	20,631	$	6,170
Restricted stock unit awards:
Weighted average grant date fair value per share	$	52.79	$	35.90	$	28.86
Total fair value of awards granted	$	40,675	$	37,906	$	28,603
Total fair value of awards vested	$	48,705	$	27,489	$	21,130
Employee stock purchase plan:
Weighted average grant date fair value per share	$	10.01	$	7.66	$	6.33
Total fair value of shares estimated to be issued	$	1,330	$	1,087	$	923

Changes in the balances of each component of accumulated other comprehensive earnings (loss)

The following table sets forth the changes in the balances of each component of accumulated other comprehensive earnings (loss) for the year ended December 31, 2018:



	Pension Plans Items			Available-For-Sale Items			Foreign Currency Items			Total
Balance, December 31, 2017	$	(344	)	$	(4	)	$	(113,012	)	$	(113,360	)
Other comprehensive income (loss) before reclassifications, net of tax	(338		)	—			(35,394		)	(35,732		)
Amounts reclassified from accumulated other comprehensive earnings (loss), net of tax	—			—			—			—
Net current period other comprehensive income (loss), net of tax	(338		)	—			(35,394		)	(35,732		)
Balance, December 31, 2018	$	(682	)	$	(4	)	$	(148,406	)	$	(149,092	)

Components of accumulated other comprehensive loss related to the Company’s pension plans as of December 31, 2018 and 2017 are as follows (in thousands):



	December 31,
	2018			2017
Net loss	$	(682	)	$	(344	)
Prior service cost	—			—
	$	(682	)	$	(344	)

Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block]

The cumulative effect of the changes made to the Company's consolidated January 1, 2018 balance sheet for the adoption of ASC 606, "Revenue - Revenue from Contracts with Customers" and ASU 2016-16, "Intra-Entity Transfers of Assets Other Than Inventory" were as follows (in thousands):



	Balance at December 31, 2017		Adjustments Due to ASC 606			Adjustments Due to ASU 2016-16			Balance at January 1, 2018
Assets
Accounts receivable, net	$	346,687	$	981		$	—		$	347,668
Inventories	372,183		(524		)	—			371,659
Deferred income taxes, net	21,001		—			74,367			95,368
Other assets	59,869		—			(1,005		)	58,864

Liabilities
Deferred revenue	25,614		(788		)	—			24,826
Deferred income taxes	12,496		290			2,067			14,853
Pension and other long-term liabilities	59,872		—			(8,030		)	51,842

Shareholders' Equity
Retained earnings	1,856,756		955			79,325			1,937,036

Note 1. Basis of Presentation - (Continued)

Recently Adopted Accounting Pronouncements - (Continued)

In accordance with the new revenue standard requirements, the disclosure of the impact of adoption on our consolidated income statement and balance sheet was as follows (in thousands):



	Year Ended December 31, 2018
	As Reported		Balances Without Adoption of ASC 606		Effect of Change Higher/(Lower)
Income Statement
Revenue	$	1,775,686	$	1,773,938	$	1,748
Cost of goods sold	875,368		874,993		375
Income tax provision	24,678		24,389		289
Net earnings	282,425		281,341		1,084



	December 31, 2018
	As Reported		Balances Without Adoption of ASC 606		Effect of Change Higher/(Lower)
Balance Sheet
Assets
Accounts receivable, net	$	323,746	$	321,017	$	2,729
Inventories	352,107		352,482		(375		)

Liabilities
Deferred revenue	32,703		32,703		—
Deferred income taxes	22,927		22,348		579

Equity
Retained earnings	2,024,523		2,022,748		1,775