Basis of Presentation (Tables)

3 Months Ended

Mar. 31, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Reconciliation of basic earnings per share ("EPS") to diluted EPS

The following is a reconciliation of basic earnings per common share to diluted earnings per share for the three months ended March 31, 2017 and 2016, respectively:



	Three Months Ended March 31,
(in thousands, except per share amounts)	2017		2016
Net income available to common stockholders	$	23,121	$	16,343
Basic weighted-average shares outstanding	47,616		48,297
Dilutive effect of potential common stock equivalents — stock options and restricted stock units	290		153
Diluted weighted-average shares outstanding	47,906		48,450
Earnings per common share:
Basic	$	0.49	$	0.34
Diluted	$	0.48	$	0.34
Potentially dilutive securities excluded from earnings per diluted share because their effect is anti-dilutive	—		—

Stock option and restricted stock unit activity of the entity

The following table represents the Company’s stock-based compensation activity for the three months ended March 31, 2017 and 2016, respectively:



	Three Months Ended March 31,
(in thousands)	2017		2016
Stock-based compensation expense recognized in operating expenses	$	7,586	$	2,480
Less: Tax benefit of stock-based compensation expense in provision for income taxes	2,791		895
Stock-based compensation expense, net of tax	$	4,795	$	1,585
Fair value of shares vested	$	7,650	$	2,350
Proceeds to the Company from the exercise of stock-based compensation	$	314	$	1,012
Tax effect from the exercise of stock-based compensation, including shortfall tax benefits	$	1,104	$	24

The Company allocates stock-based compensation expenses among cost of sales, research and development and other engineering expense, selling expense, or general and administrative expense based on the job functions performed by the employees to whom the stock-based compensation is awarded. The assumptions used to calculate the fair value of stock-based compensation are evaluated and revised, as necessary, to reflect market conditions and the Company’s experience.

The following table shows the expense related to the Company's stock-based compensation capitalized in inventory for the three months ended March 31, 2017 and 2016, respectively:



	At March 31,
(in thousands)	2017		2016
Stock-based compensation cost capitalized in inventory	$	521	$	253

Summary of financial instruments

As of December 31, 2016 and March 31, 2017, the Company’s investments consisted of only money market funds, and as of March 31, 2016, its investments consisted of only United States Treasury securities and money market funds, which are the Company’s primary financial instruments, maintained in cash equivalents and carried at cost, approximating fair value, based on Level 1 inputs. The balances of the Company's primary financial instruments at the dates indicated were as follows:



	At March 31,				At December 31,
(in thousands)	2017		2016		2016
United States Treasury securities and money market funds	$	3,545	$	71,442	$	2,832

Schedule of effective tax rates and income tax expense

The following table presents the Company’s effective tax rates and income tax expense for the three months ended March 31, 2017 and 2016, respectively:



	Three Months Ended March 31,
(in thousands, except percentages)	2017			2016
Effective tax rate	24.9		%	38.1		%
Provision for income taxes	$	7,680		$	10,063

Schedule of business acquisitions

The following table represents the preliminary allocation of the purchase price to the estimated fair value of the assets acquired and liabilities assumed at the acquisition date of the Gbo Fastening Systems acquisition:



(In thousands)
Assets *
	Cash and cash equivalents	$	3,956
	Accounts receivable	4,914
	Inventory	13,063
	Other current assets	760
	Property, plant, equipment and noncurrent assets	5,744
		28,437
Liabilities
	Accounts payable	4,500
	Other current liabilities	5,381
		9,881

Total net assets		18,556
	Gain on bargain purchase of a business, net of tax	(8,388		)
	Total purchase price	$	10,168
*	Intangible assets acquired were determined to have little to no value, thus were not recognized.