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Employee Stock Purchase Plan, Stock Options and Warrants (Tables)

12 Months Ended

Dec. 31, 2021

Share-based Payment Arrangement [Abstract]

Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs

The stock-based compensation expense before income tax expense for the years ended December 31, 2021, 2020 and 2019, consisted of the following (in thousands):


	2021		2020		2019
Cost of sales
Nonqualified stock options	$	1,476	$	1,357	$	1,289
Research and development
Nonqualified stock options		1,343		1,157		961
Selling, general and administrative
Nonqualified stock options		6,678		7,332		7,132
Performance-based restricted stock units		3,525		2,829		—
Restricted stock units		1,557		758		—
Cash-settled performance-based share-based awards ("Liability Awards")		1,511		906		—
Total selling, general and administrative		13,271		11,825		7,132

Stock-based compensation expense before taxes	$	16,090	$	14,339	$	9,382

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions

In applying the Black-Scholes methodology to the option grants, the fair value of our stock-based awards granted were estimated using the following assumptions for the years ended December 31, 2021, 2020 and 2019:


	2021	2020	2019
Risk-free interest rate	0.5% - 1.1%	0.3% - 1.7%	1.4% - 2.6%
Expected option term	4.0 years	4.0 - 5.0 years	3.0 - 5.0 years
Expected dividend yield	—	—	—
Expected price volatility	46.1% - 46.7%	38.7% - 45.1%	28.7% - 39.4%

Schedule of Share-based Compensation, Stock Option Activity

The table below presents information related to stock option activity for the years ended December 31, 2021, 2020 and 2019 (in thousands):


	2021		2020		2019
Total intrinsic value of stock options exercised	$	36,086	$	11,733	$	9,910
Cash received from stock option exercises		20,194		5,481		4,837
Excess tax benefit from the exercise of stock options		5,571		1,815		1,654

Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable

Changes in stock options for the year ended December 31, 2021, consisted of the following (shares and intrinsic value in thousands):


	Number	Weighted Average		Remaining Contractual	Intrinsic
	of Shares	Exercise Price		Term (in years)	Value
Beginning balance	3,942	$	35.98
Granted	716		66.60
Exercised	(883)		23.08
Forfeited/expired	(135)		47.60
Outstanding at December 31	3,640		44.70	3.90	$	67,868
Exercisable	1,762		35.86	2.80		46,601
Ending vested and expected to vest	3,537		44.32	3.85		67,063

Schedule of Share-based Compensation, PSUs and RSUs, Activity

Changes in PSUs and RSUs for the year ended December 31, 2021, consisted of the following:


	PSUs				RSUs
			Weighted Average			Weighted Average
	Stock Units		Grant Date		Stock Units	Grant Date
	(In Thousands)	⁽¹⁾	Fair Value		(In Thousands)	Fair Value
Beginning nonvested balance	102		$	43.63	34	$	42.98
Granted	103			61.39	26		61.77
rTSR adjustment	5	⁽²⁾		43.43	—		—
Vested	(26)			43.43	(34)		42.98
Forfeited	(21)			52.56	—		—
Nonvested balance at December 31	163			53.71	26		61.77

(1)

Based on the maximum payout, excluding the impact of the rTSR multiplier. The actual number of shares which vest is determined based on the satisfaction of performance conditions and the application of an rTSR multiplier between 75% and 125%.

(2)

Represents the application of an rTSR multiplier of 125% to awards vested in 2021 based on the performance of our common stock and the terms of the awards.

Schedule of Share-based Compensation, PSUs and RSUs Granted

The following table summarizes PSUs and RSUs granted during the years ended December 31, 2021, 2020 and 2019 (units and shares in thousands):


	2021		2020			2019
PSUs
Target units granted		52		61			—
Maximum units granted ⁽¹⁾		103		102	⁽³⁾		—
Maximum potential shares⁽¹⁾⁽²⁾		129		127	⁽³⁾		—
Weighted average grant date fair value	$	61.39	$	43.63			N/A
RSUs
Units granted		26		34			—
Weighted average grant date fair value	$	61.77	$	42.98			N/A

(1)

Based on the maximum payout, excluding the impact of the rTSR multiplier.

(2)

Includes the impact of the maximum potential rTSR multiplier of 125%.

(3)

Includes the impact of the 2020 amendment which reduced the maximum FCF multiplier for one-year awards from 200% to 100%.

Schedule of Share-based Payment Award, PSUs, Valuation Assumptions

The fair value of each PSU was estimated as of the grant date using the following assumptions for awards granted in the years ended December 31, 2021 and 2020:


	2021	2020
Risk-free interest rate	0.1% - 0.3%	1.1% - 1.3%
Performance period	1.8 - 2.8 years	0.8 - 2.8 years
Expected dividend yield	—	—
Expected price volatility	43.7% - 49.3%	40.2% - 56.1%