Employee Benefits and Share-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2016

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

Share-Based Compensation Expense Recognized in Consolidate Statements of Income

The following table sets forth the total share-based compensation expense recognized in the Company's Condensed Consolidated Statements of Operations:

	Three months ended				Nine months ended
	September 30, 2016		September 30, 2015		September 30, 2016		September 30, 2015
	(In thousands)
Cost of product and service revenues	$	628	$	581	$	1,821	$	1,630
Research and development	825		587		2,267		1,472
Selling, general and administrative	3,224		2,798		9,975		8,165
Total share-based compensation expense	$	4,677	$	3,966	$	14,063	$	11,267

Estimate of Fair Value of Share-Based Awards, Employee Stock Purchase Plan

The following weighted average assumptions are used to value stock options and Employee Stock Purchase Plan ("ESPP") shares issued pursuant to the Company's equity incentive plans for the three and nine months ended September 30, 2016 and September 30, 2015:

	Three months ended				Nine months ended
	September 30, 2016		September 30, 2015		September 30, 2016		September 30, 2015
Stock Option Plans
Expected life, years	4.92		5.04		4.92		5.04
Expected volatility, %	30.0	%	29.3	%	31.4	%	31.1	%
Risk free interest rate, %	1.21	%	1.73	%	1.34	%	1.63	%
Estimated forfeiture rate %	8.6	%	2.5	%	8.6	%	2.5	%
Dividend yield, %	—	%	—	%	—	%	—	%

	Three months ended				Nine months ended
	September 30, 2016		September 30, 2015		September 30, 2016		September 30, 2015
Employee Stock Purchase Plan
Expected life, years	0.5-2.0		0.5-2.0		0.5-2.0		0.5-2.0
Expected volatility, %	25.8-34.8%		25.8-34.4%		25.8-34.8%		25.8-37.5%
Risk free interest rate, %	0.41-0.79%		0.12-0.79%		0.34-0.79%		0.03-0.79%
Dividend yield, %	—	%	—	%	—	%	—	%

Estimate of Fair Value of Share-Based Awards, Share Options

The following weighted average assumptions are used to value stock options and Employee Stock Purchase Plan ("ESPP") shares issued pursuant to the Company's equity incentive plans for the three and nine months ended September 30, 2016 and September 30, 2015:

	Three months ended				Nine months ended
	September 30, 2016		September 30, 2015		September 30, 2016		September 30, 2015
Stock Option Plans
Expected life, years	4.92		5.04		4.92		5.04
Expected volatility, %	30.0	%	29.3	%	31.4	%	31.1	%
Risk free interest rate, %	1.21	%	1.73	%	1.34	%	1.63	%
Estimated forfeiture rate %	8.6	%	2.5	%	8.6	%	2.5	%
Dividend yield, %	—	%	—	%	—	%	—	%

	Three months ended				Nine months ended
	September 30, 2016		September 30, 2015		September 30, 2016		September 30, 2015
Employee Stock Purchase Plan
Expected life, years	0.5-2.0		0.5-2.0		0.5-2.0		0.5-2.0
Expected volatility, %	25.8-34.8%		25.8-34.4%		25.8-34.8%		25.8-37.5%
Risk free interest rate, %	0.41-0.79%		0.12-0.79%		0.34-0.79%		0.03-0.79%
Dividend yield, %	—	%	—	%	—	%	—	%

Stock Option Activity under the Equity Incentive Plans

The following table summarizes the share option activity under the Company’s equity incentive plans during the nine months ended September 30, 2016:

	Number of Shares		Weighted-Average Exercise Price		Weighted-Average Remaining Years	Aggregate Intrinsic Value(1)
	(In thousands, except per share data)
Stock Options
Outstanding at December 31, 2015	2,688		$	22.89	6.9
Granted	512		29.25
Exercised	(352	)	19.24
Expired	(5	)	28.75
Forfeited	(100	)	29.74
Outstanding at September 30, 2016	2,743		$	24.30	7.0	$	38,482
Exercisable at September 30, 2016	1,368		$	19.36	5.2	$	25,929
Vested and expected to vest at September 30, 2016 and thereafter	2,597		$	23.99	6.9	$	37,230

Restricted Stock Units Activity under the Stock Option Activity under the Equity Incentive Plans

The following table summarizes the restricted stock activity under the Company’s equity incentive plans during the nine months ended September 30, 2016:

	Number of Shares		Weighted-Average Grant Date Fair Value		Weighted-Average Remaining Years	Aggregate Intrinsic Value
	(In thousands, except per share data)
Restricted Stock Units ("RSUs")
Outstanding at December 31, 2015	417		$	28.49	1.6
Granted	121		29.19
Vested	(106	)	26.80
Forfeited	(19	)	27.85
Outstanding and unvested at September 30, 2016	413		$	29.16	1.3	$	15,812

Restricted Stock Units Award under the Stock Option Activity under the Equity Incentive Plans

	Number of Shares		Weighted-Average Grant Date Fair Value
	(In thousands, except per share data)
Restricted Stock Awards ("RSAs")
Outstanding at December 31, 2015	31		$	35.97
Granted	35		31.59
Vested	(31	)	36.03
Forfeited	—		—
Outstanding and unvested at September 30, 2016	35		$	31.56

Performance Shares Restricted Stock Activity under the Stock Option Activity under the Equity Incentive Plans

The following table summarizes the performance-based restricted stock activity under the Company’s equity incentive plans during the nine months ended September 30, 2016:

	Number of Shares		Weighted-Average Grant Date Fair Value Per Unit
	(In thousands, except per share data)
Performance-based Restricted Stock Units ("PSUs")
Outstanding at December 31, 2015	151		$	23.33
Granted	122		24.66
Vested	(52	)	23.04
Forfeited	—		—
Outstanding and unvested at September 30, 2016	221		$	24.13

Shares Reserved for Future Issuance under the Stock Option Activity under the Equity Incentive Plans

The Company had the following ordinary shares reserved for future issuance under its equity incentive plans as of September 30, 2016:

	Number of Shares
	(In thousands)
Share options outstanding	2,743
Non-vested restricted share awards	668
Shares authorized for future issuance	2,831
ESPP shares available for future issuance	2,831
Total shares reserved for future issuance	9,073