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Stock-Based Compensation | 12 Months Ended
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Dec. 31, 2016
Stock-Based Compensation [Abstract] |
Stock-Based Compensation |
(11) | Stock-Based Compensation
The Roper Technologies, Inc. 2016 Incentive Plan ("2016 Plan") is a stock-based compensation plan used to grant incentive stock options, nonqualified stock options, restricted stock, stock appreciation rights or equivalent instruments to Roper's employees, officers and directors. The 2016 Plan was approved by shareholders at the Annual Meeting of Shareholders on May 27, 2016. The 2016 Plan replaces the Roper Technologies, Inc. Amended and Restated 2006 Incentive Plan ("2006 Plan"), and no additional grants will be made from the 2006 Plan. The number of shares reserved for issuance under the 2016 Plan is 7,924,932, plus 2,073,894 remaining shares that were available to grant under the 2006 Plan at May 27, 2016, plus any shares underlying outstanding awards under the 2006 Plan that terminate or expire unexercised, or are cancelled, forfeited or lapse for any reason subsequent to May 27, 2016. At December 31, 2016, 9,190,273 shares were available to grant. Under the Roper Technologies, Inc., Employee Stock Purchase Plan ("ESPP"), all employees in the U.S. and Canada are eligible to designate up to 10% of eligible earnings to purchase Roper's common stock at a 5% discount to the average closing price of its common stock at the beginning and end of a quarterly offering period. Common stock sold to the employees may be either treasury stock, stock purchased on the open market, or newly issued shares. Stock based compensation expense for the years ended December 31, 2016, 2015 and 2014 was as follows (in millions):
|  | 2016 |  |  | 2015 |  |  | 2014 |
Stock based compensation |  | $ | 78.8 |  |  | $ | 61.8 |  |  | $ | 63.0 |
Tax benefit recognized in net income |  |  | 27.6 |  |  |  | 21.6 |  |  |  | 22.1 |
Windfall tax benefit, net |  |  | - |  |  |  | 22.2 |  |  |  | 21.5 |
Windfall tax benefits are no longer calculated due to the adoption of the ASU related to stock compensation (see Note 1), as all tax benefits are recognized in net income. Stock Options – Stock options are typically granted at prices not less than 100% of market value of the underlying stock at the date of grant. Stock options typically vest over a period of three to five years from the grant date and expire ten years after the grant date. The Company recorded $20.1 million, $15.3 million, and $16.6 million of compensation expense relating to outstanding options during 2016, 2015 and 2014, respectively, as a component of general and administrative expenses, primarily at corporate. The Company estimates the fair value of its option awards using the Black-Scholes option valuation model. The stock volatility for each grant is measured using the weighted-average of historical daily price changes of the Company's common stock over the most recent period equal to the expected life of the grant. The expected term of options granted is derived from historical data to estimate option exercises and employee forfeitures, and represents the period of time that options granted are expected to be outstanding. The risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. The weighted-average fair value of options granted in 2016, 2015 and 2014 were calculated using the following weighted-average assumptions:
|  | 2016 |  |  | 2015 |  |  | 2014 |
Weighted-average fair value ($) |  |  | 34.57 |  |  |  | 33.98 |  |  |  | 34.95 |
Risk-free interest rate (%) |  |  | 1.44 |  |  |  | 1.53 |  |  |  | 1.63 |
Average expected option life (years) |  |  | 5.20 |  |  |  | 5.10 |  |  |  | 5.22 |
Expected volatility (%) |  |  | 21.35 |  |  |  | 22.17 |  |  |  | 27.01 |
Expected dividend yield (%) |  |  | 0.70 |  |  |  | 0.62 |  |  |  | 0.58 |
The following table summarizes the Company's activities with respect to its share-based compensation plans for the years ended December 31, 2016 and 2015:
|  | Number of shares |  |  | Weighted-average exercise price per share |  | Weighted-average contractual term |  | Aggregate intrinsic value |
Outstanding at January 1, 2015 |  |  | 2,981,111 |  |  | $ | 90.48 |  |  |  |  |
Granted |  |  | 628,155 |  |  |  | 162.77 |  |  |  |  |
Exercised |  |  | (400,050 | ) |  |  | 82.50 |  |  |  |  |
Canceled |  |  | (91,600 | ) |  |  | 142.36 |  |  |  |  |
Outstanding at December 31, 2015 |  |  | 3,117,616 |  |  |  | 104.54 |  |  |  | 6.08 |  |  | $ | 265,782,636 |
Granted |  |  | 743,250 |  |  |  | 172.23 |  |  |  |  |  |  |  |  |
Exercised |  |  | (371,853 | ) |  |  | 75.23 |  |  |  |  |  |  |  |  |
Canceled |  |  | (69,416 | ) |  |  | 159.97 |  |  |  |  |  |  |  |  |
Outstanding at December 31, 2016 |  |  | 3,419,597 |  |  |  | 121.31 |  |  |  | 6.15 |  |  | $ | 211,369,740 |
Exercisable at December 31, 2016 |  |  | 1,954,306 |  |  | $ | 89.37 |  |  |  | 4.28 |  |  | $ | 183,136,309 |
The following table summarizes information for stock options outstanding at December 31, 2016:
|  |  | Outstanding options |  |  | Exercisable options |
Exercise price |  |  | Number |  |  | Average exercise price |  |  | Average remaining life (years) |  |  | Number |  |  | Average exercise price |
$ | 38.46 - 57.68 |  |  |  | 689,289 |  |  | $ | 53.28 |  |  |  | 1.5 |  |  |  | 689,289 |  |  | $ | 53.28 |
| 57.69 - 76.91 |  |  |  | 259,460 |  |  |  | 72.55 |  |  |  | 4.2 |  |  |  | 259,460 |  |  |  | 72.55 |
| 76.92 - 96.14 |  |  |  | 249,281 |  |  |  | 93.34 |  |  |  | 5.0 |  |  |  | 249,281 |  |  |  | 93.34 |
| 96.15 - 115.37 |  |  |  | 283,069 |  |  |  | 114.99 |  |  |  | 6.0 |  |  |  | 283,069 |  |  |  | 114.99 |
| 115.38 - 134.60 |  |  |  | 503,778 |  |  |  | 130.72 |  |  |  | 7.0 |  |  |  | 368,456 |  |  |  | 129.96 |
| 134.61- 153.82 |  |  |  | 259,370 |  |  |  | 144.19 |  |  |  | 7.7 |  |  |  | 75,334 |  |  |  | 141.95 |
| 153.83 - 173.05 |  |  |  | 916,725 |  |  |  | 167.80 |  |  |  | 8.8 |  |  |  | 25,334 |  |  |  | 157.81 |
| 173.06 - 192.28 |  |  |  | 258,625 |  |  |  | 179.42 |  |  |  | 9.5 |  |  |  | 4,083 |  |  |  | 175.47 |
$ | 38.46 - 192.28 |  |  |  | 3,419,597 |  |  | $ | 121.31 |  |  |  | 6.2 |  |  |  | 1,954,306 |  |  | $ | 89.37 |
At December 31, 2016, there was $29.8 million of total unrecognized compensation expense related to nonvested options granted under the Company's share-based compensation plans. That cost is expected to be recognized over a weighted-average period of 2.1 years. The total intrinsic value of options exercised in 2016, 2015 and 2014 was $38.9 million, $36.9 million and $50.3 million, respectively. Cash received from option exercises under all plans in 2016 and 2015 was $28.0 million and $33.0 million, respectively. Restricted Stock Grants - During 2016 and 2015, the Company granted 555,730 and 437,035 shares, respectively, of restricted stock to certain employee and director participants under its share-based compensation plans. Restricted stock grants generally vest over a period of 1 to 3 years. The Company recorded $57.8 million, $46.5 million and $46.4 million of compensation expense related to outstanding shares of restricted stock held by employees and directors during 2016, 2015 and 2014, respectively. A summary of the Company's nonvested shares activity for 2016 and 2015 is as follows:
|  | Number of shares |  |  | Weighted-average grant date fair value |
Nonvested at December 31, 2014 |  |  | 542,555 |  |  | $ | 130.29 |
Granted |  |  | 437,035 |  |  |  | 159.32 |
Vested |  |  | (243,423 | ) |  |  | 183.10 |
Forfeited |  |  | (26,892 | ) |  |  | 148.82 |
Nonvested at December 31, 2015 |  |  | 709,275 |  |  | $ | 146.64 |
Granted |  |  | 555,730 |  |  |  | 172.67 |
Vested |  |  | (287,233 | ) |  |  | 141.27 |
Forfeited |  |  | (25,100 | ) |  |  | 139.56 |
Nonvested at December 31, 2016 |  |  | 952,672 |  |  | $ | 164.62 |
At December 31, 2016, there was $92.9 million of total unrecognized compensation expense related to nonvested awards granted to both employees and directors under the Company's share-based payment plans. That cost is expected to be recognized over a weighted-average period of 2.6 years. Unrecognized compensation expense related to nonvested shares of restricted stock grants is recorded as a reduction to additional paid-in capital in stockholder's equity at December 31, 2016. Employee Stock Purchase Plan - During 2016, 2015 and 2014, participants of the ESPP purchased 19,448, 18,132 and 20,368 shares, respectively, of Roper's common stock for total consideration of $3.3 million, $2.9 million, and $2.8 million, respectively. All of these shares were purchased from Roper's treasury shares. The Company had no compensation expense relating to the stock purchase plan during 2016, 2015 and 2014.

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- Definition The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 40 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=65895303&loc=d3e17540-113929 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=68057994&loc=d3e25284-112666 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB Topic 14) -URI http://asc.fasb.org/extlink&oid=27013229&loc=d3e301413-122809 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5444-113901 + Details
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