Stock-based compensation

9 Months Ended

Sep. 30, 2017

Share-based Compensation [Abstract]

Stock-based compensation

Stock-based compensation

The Company recognizes compensation expense for all share-based payments granted based on the grant-date fair value estimated in accordance with the provisions of the FASB ASC 718-10. Compensation expense is recognized on a straight-line basis over the options’ or other awards’ estimated lives for fixed awards with ratable vesting provisions.

The Company granted 154 restricted stock units ("RSUs") at a weighted average grant-date fair value of $226.91 per unit for the nine months endedSeptember 30, 2017. The Company granted 182 RSUs at a weighted average grant-date fair value of $184.88 per unit for the nine months endedOctober 1, 2016. The Company recognized stock-based compensation costs related to the issuance of RSUs of $7,177 ($4,355 net of taxes) and $5,288 ($3,209 net of taxes) for the three months endedSeptember 30, 2017 and October 1, 2016, respectively, which has been allocated to cost of sales and selling, general and administrative expenses. The Company recognized stock-based compensation costs related to the issuance of RSUs of $30,601 ($18,569 net of taxes) and $28,807 ($17,480 net of taxes) for the nine months endedSeptember 30, 2017 and October 1, 2016, respectively, which has been allocated to cost of sales and selling, general and administrative expenses. Pre-tax unrecognized compensation expense for unvested RSUs granted to employees, net of estimated forfeitures, was $30,979 as of September 30, 2017, and will be recognized as expense over a weighted-average period of approximately 1.48 years. The Company also recognized stock-based compensation costs related to stock options of $6 ($4 net of taxes) and $34 ($21 net of taxes) for the nine months endedSeptember 30, 2017 and October 1, 2016, respectively, which has been allocated to cost of sales and selling, general and administrative expenses.