Stock-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2017

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of Stock-based Compensation Expense

A summary of stock-based compensation expense for the nine months ended September 30, 2017 and 2016 is as follows:

	Nine Months Ended September 30,
	2017		2016
	(in thousands)
Stock options	$	2,885	$	2,399
Restricted stock and restricted stock units	888		412
Employee Stock Purchase Plan	365		302
Total pre-tax stock-based compensation expense charged against income (1)	$	4,138	$	3,113

⁽¹⁾  Stock-based compensation expense is recorded in selling, general and administrative expense in the Company’s Consolidated Statements of Comprehensive Income.

Summary of Other Information of Stock Option Plans

A summary of stock options outstanding under the Plan as of December 31, 2016 and changes during the nine months ended September 30, 2017 is as follows:

	Stock Options Outstanding
	Number of Shares		Weighted Average Exercise Price
	(in thousands)
December 31, 2016	2,615		$	24.61
Granted	544		$	39.38
Canceled	(93	)	$	33.66
Exercised	(513	)	$	20.39
September 30, 2017	2,553		$	28.27

Assumption For Fair Value of Options Granted

The fair value of stock option awards granted in 2017 and 2016 was estimated on the date of grant using the Black-Scholes option valuation model using the following assumptions:

	Nine Months Ended
	2017		2016
Risk-free interest rate	2.0	%	2.0	%
Weighted average expected life (years)	5.8 years		5.8 years
Expected volatility	25.1	%	26.0	%
Dividend yield	1.9	%	2.0	%

Summarized Information of Stock Options Outstanding

The following table summarizes other information about the stock options at September 30, 2017:

	September 30, 2017
	(in thousands, except per share data)
Outstanding:
Aggregate intrinsic value	$	65,589
Weighted average remaining contractual life (years)	6.5 years
Exercisable:
Number of options	1,123
Weighted average exercise price	$	21.05
Aggregate intrinsic value	$	36,950
Weighted average remaining contractual life (years)	4.5 years

Schedule of Restricted Stock Outstanding Stock-based Compensation

A summary of the outstanding restricted stock awards as of December 31, 2016 and changes during the nine months ended September 30, 2017 is as follows:

	Shares		Weighted Average Grant Date Fair Value
	(in thousands)
December 31, 2016	74		$	32.09
Granted	—		$	—
Vested	(18	)	$	31.41
Forfeited	—		$	—
September 30, 2017	56		$	32.30

A summary of the outstanding restricted stock units as of December 31, 2016 and changes during the nine months ended September 30, 2017 is as follows:

	Units	Weighted Average Grant Date Fair Value
	(in thousands)
December 31, 2016	—	$	—
Granted	88	$	40.16
Vested	—	$	—
Forfeited	—	$	—
September 30, 2017	88	$	40.16

Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions

The stock-based compensation expense associated with the options granted under the ESPP during the nine months ended September 30, 2017 and 2016 was estimated on the date of grant using the Black-Scholes option valuation model using the following assumptions:

	Nine Months Ended September 30,
	2017	2016
Risk-free interest rate	1.05%	0.58%
Weighted average expected life (years)	1.0	1.0
Expected volatility	21.2%	19.7%
Dividend yield	1.9%	2.0%

Schedule of Deferred Compensation Arrangement with Individual, Share-based Payments

The following table summarizes information about the SERP during the nine months ended September 30, 2017 and 2016:

	Nine Months Ended September 30,
	2017		2016
	(in thousands)
SERP expense (1)	$	460	$	443
Unrealized gain recorded in SERP liability account	$	3,375	$	1,114

⁽¹⁾ Both the SERP match and the deferrals are included in the selling, general and administrative caption in the consolidated statements of comprehensive income.