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Share-Based Compensation | 6 Months Ended
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Jun. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
Share-Based Compensation | Share-Based Compensation During the six months ended June 30, 2015, the Company granted approximately 0.4 million stock options, 0.1 million unvested shares and 0.1 million performance share units. During the six months ended June 30, 2014, the Company granted approximately 0.5 million stock options, 0.2 million unvested shares and 0.1 million performance share units. Weighted average option fair values and assumptions for the periods specified are disclosed below. The fair value of each option grant was estimated on the date of the grant using the Binomial lattice option pricing model.
|  | Three Months Ended June 30,
|  | 2015 |  | 2014
Weighted average fair value of option grants |  | $19.49 |  | $19.34
Dividend yield |  | 1.65% |  | 1.43%
Volatility |  | 29.87% |  | 30.43%
Risk-free forward interest rate |  | 0.26% - 3.11% |  | 0.10% - 4.17%
Expected life (in years) |  | 5.90 |  | 5.87
|  | Six Months Ended June 30,
|  | 2015 |  | 2014
Weighted average fair value of option grants |  | $20.39 |  | $19.53
Dividend yield |  | 1.42% |  | 1.26%
Volatility |  | 29.94% |  | 30.36%
Risk-free forward interest rate |  | 0.23% - 2.75% |  | 0.12% - 4.67%
Expected life (in years) |  | 5.90 |  | 5.89
Weighted average performance share unit fair values and assumptions for the period specified are disclosed below. The performance share units are market condition awards and have been assessed at fair value on the date of grant using a Monte Carlo simulation model.
|  | Three and Six Months Ended June 30,
|  | 2015 |  | 2014
Weighted average fair value of performance share units |  | $95.07 |  | $94.55
Dividend yield |  | 0.00% |  | 0.00%
Volatility |  | 19.14% |  | 26.41%
Risk-free forward interest rate |  | 1.01% |  | 0.65%
Expected life (in years) |  | 2.86 |  | 2.88
Total compensation cost for stock options is as follows:
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2015 |  | 2014 |  | 2015 |  | 2014
Cost of goods sold | $ | 124 |  |  | $ | 133 |  |  | $ | 350 |  |  | $ | 375 |
Selling, general and administrative expenses | 1,494 |  |  | 1,425 |  |  | 3,690 |  |  | 3,615 |
Total expense before income taxes | 1,618 |  |  | 1,558 |  |  | 4,040 |  |  | 3,990 |
Income tax benefit | (502 | ) |  | (496 | ) |  | (1,269 | ) |  | (1,251 | )
Total expense after income taxes | $ | 1,116 |  |  | $ | 1,062 |  |  | $ | 2,771 |  |  | $ | 2,739 |
Total compensation cost for unvested shares is as follows:
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2015 |  | 2014 |  | 2015 |  | 2014
Cost of goods sold | $ | 320 |  |  | $ | 693 |  |  | $ | 799 |  |  | $ | 1,165 |
Selling, general and administrative expenses | 1,741 |  |  | 2,578 |  |  | 4,438 |  |  | 5,324 |
Total expense before income taxes | 2,061 |  |  | 3,271 |  |  | 5,237 |  |  | 6,489 |
Income tax benefit | (472 | ) |  | (644 | ) |  | (1,278 | ) |  | (1,331 | )
Total expense after income taxes | $ | 1,589 |  |  | $ | 2,627 |  |  | $ | 3,959 |  |  | $ | 5,158 |
Total compensation cost for performance share units is as follows:
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2015 |  | 2014 |  | 2015 |  | 2014
Cost of goods sold | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Selling, general and administrative expenses | 1,183 |  |  | 823 |  |  | 2,525 |  |  | 1,484 |
Total expense before income taxes | 1,183 |  |  | 823 |  |  | 2,525 |  |  | 1,484 |
Income tax benefit | (408 | ) |  | (288 | ) |  | (838 | ) |  | (474 | )
Total expense after income taxes | $ | 775 |  |  | $ | 535 |  |  | $ | 1,687 |  |  | $ | 1,010 |
The Company’s policy is to recognize compensation cost on a straight-line basis, assuming forfeitures, over the requisite service period for the entire award. Classification of stock compensation cost within the Consolidated Statements of Operations is consistent with classification of cash compensation for the same employees. As of June 30, 2015, there was $13.5 million of total unrecognized compensation cost related to stock options that is expected to be recognized over a weighted-average period of 1.5 years, $11.7 million of total unrecognized compensation cost related to unvested shares that is expected to be recognized over a weighted-average period of 1.1 years, and $8.7 million of total unrecognized compensation cost related to performance share units that is expected to be recognized over a weighted-average period of 1.1 years. A summary of the Company’s stock option activity as of June 30, 2015, and changes during the six months ended June 30, 2015, is presented in the following table:
Stock Options | Shares |  | Weighted Average Price |  | Weighted-Average Remaining Contractual Term |  | Aggregate Intrinsic Value
Outstanding at January 1, 2015 | 2,378,559 |  |  | $ | 46.91 |  |  | 6.69 |  | $ | 73,561,785 |
Granted | 459,830 |  |  | 78.40 |  |  |  |  |
Exercised | (338,195 | ) |  | 39.93 |  |  |  |  |
Forfeited | (53,310 | ) |  | 61.85 |  |  |  |  |
Outstanding at June 30, 2015 | 2,446,884 |  |  | $ | 53.47 |  |  | 6.95 |  | $ | 61,436,539 |
Vested and expected to vest as of June 30, 2015 | 2,309,595 |  |  | $ | 52.41 |  |  | 6.83 |  | $ | 60,453,367 |
Exercisable at June 30, 2015 | 1,317,492 |  |  | $ | 41.61 |  |  | 5.52 |  | $ | 48,706,596 |

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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=6418621&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=51659978&loc=d3e25284-112666 Reference 3: 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 4: 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 5: 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 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 14 + Details
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