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Stock Based Compensation
 6 Months Ended
Jun. 30, 2017
Stock Based Compensation [Abstract]  
Stock Based Compensation
5.
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 replaces the Roper Technologies, Inc. Amended and Restated 2006 Incentive Plan ("2006 Plan"), and no additional grants will be made from the 2006 Plan.

Roper's stock purchase plan allows employees in the U.S. and Canada to designate up to 10% of eligible earnings to purchase Roper's common stock at a 5% discount to the average closing price of the stock at the beginning and end of a quarterly offering period. Common stock sold to employees pursuant to the stock purchase plan may be either treasury stock, stock purchased on the open market, or newly issued shares.

The following table provides information regarding the Company's stock-based compensation expense (in thousands):
 
 
 
Three months ended June 30,
  
Six months ended June 30,
 
 
 
2017
  
2016
  
2017
  
2016
 
Stock-based compensation
 
$
22,815
  
$
20,113
  
$
43,864
  
$
39,092
 
Tax effect recognized in net income
  
7,985
   
7,040
   
15,352
   
13,682
 


Stock Options - In the six months ended June 30, 2017, 520,600 options were granted with a weighted average fair value of $40.42 per option. During the same period in 2016, 584,500 options were granted with a weighted average fair value of $34.44 per option. All options were issued at grant date fair value, which is defined by both the 2016 Plan and the 2006 Plan as the closing price of Roper's common stock on the date of grant.
 
Roper records compensation expense for employee stock options based on the estimated fair value of the options on the date of grant using the Black-Scholes option-pricing model. Historical data is used to estimate the expected price volatility, the expected dividend yield, the expected option life and the expected forfeiture rate. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant for the estimated life of the option. The following weighted average assumptions were used to estimate the fair value of options granted during current and prior year periods using the Black-Scholes option-pricing model:

 
 
Six months ended June 30,
 
 
 
2017
  
2016
 
Risk-free interest rate (%)
  
2.05
   
1.39
 
Expected option life (years)
  
5.27
   
5.20
 
Expected volatility (%)
  
18.81
   
21.63
 
Expected dividend yield (%)
  
0.68
   
0.70
 

Cash received from option exercises for the six months ended June 30, 2017 and 2016 was $26.9 million and $10.0 million, respectively.
 
Restricted Stock Awards - During the six months ended June 30, 2017, 316,667 restricted stock awards were granted with a weighted average grant date fair value of $196.28 per restricted share. During the same period in 2016, 378,180 restricted stock awards were granted with a weighted average grant date fair value of $168.68 per restricted share. All grants were issued at grant date fair value.
 
During the six months ended June 30, 2017, 124,600 restricted awards vested with a weighted average grant date fair value of $143.89 per restricted share and a weighted average vest date fair value of $213.08 per restricted share.
 
Employee Stock Purchase Plan - During the six months ended June 30, 2017 and 2016, participants in the employee stock purchase plan purchased 10,426 and 9,964 shares, respectively, of Roper's common stock for total consideration of $2.04 million and $1.72 million, respectively. All shares were purchased from Roper's treasury shares.