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Stock-Based Compensation Plans (Tables)
 12 Months Ended
Dec. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Schedule of Company's stock-based compensation activity
Accounting for Stock-Based Compensation

The Company recognizes stock-based expenses related to stock options and restricted stock awards on a straight-line basis, net of forfeitures, over the requisite service period of the awards, which is generally the vesting term of four years. Stock-based expenses related to performance share grants are measured based on grant date fair value and expensed on a straight-line basis over the service period of the awards, which is generally the vesting term of three years. The assumptions used to calculate the fair value of options or restricted stock units are evaluated and revised, as necessary, to reflect market conditions and the Company’s experience.

The following table shows the Company’s stock-based compensation activity:
 
Fiscal Years Ended December 31,
(in thousands) 
2017
 
2016
 
2015
Stock-based compensation expense recognized in operating expenses
$
12,744

 
$
13,113

 
$
11,212

Tax benefit of stock-based compensation expense in provision for income taxes
4,575

 
4,757

 
3,987

Stock-based compensation expense, net of tax
$
8,169

 
$
8,356

 
$
7,225

Fair value of shares vested
$
11,043

 
$
13,186

 
$
10,997

Proceeds to the Company from the exercise of stock-based compensation
$
6,610

 
$
7,976

 
$
9,720

Tax benefit from exercise of stock-based compensation, including shortfall tax benefits
$
—

 
$
(251
)
 
$
(318
)

The stock-based compensation expense included in cost of sales, research and development and engineering expense, selling expense, or general and administrative expense depends on the job functions performed by the employees to whom the stock options were granted, or the restricted stock units were awarded. Stock-based compensation cost capitalized in inventory was $0.2 million in 2017, and was $0.4 million in both 2016 and 2015, respectively.

Schedule of unvested restricted stock unit activity
following table summarizes the Company’s unvested restricted stock unit activity for the year ended December 31, 2017:

Shares
(in thousands)
 
Weighted-
Average
Price
 
Aggregate
Intrinsic
Value *
(in thousands)
Unvested Restricted Stock Units (RSUs)
 
 
Outstanding at January 1, 2017
615

 
$
31.81

 
$
26,915

Awarded
589

 
38.79

 


Vested
(336
)
 
32.85

 


Forfeited
(172
)
 
35.96

 


Outstanding at December 31, 2017
696

 
$
35.34

 
$
39,976

Outstanding and expected to vest at December 31, 2017
690

 
$
35.33

 
$
39,609



*  The intrinsic value for outstanding and expected to vest is calculated using the closing price per share of $57.41, as reported by the New York Stock Exchange on December 31, 2017.
Summary of stock option activity
The following table summarizes the Company’s stock option activity for the year ended December 31, 2017:

Shares
(in thousands)
 
Weighted-
Average
Exercise
Price
 
Weighted-
Average
Remaining
Contractual
Life
 
Aggregate
Intrinsic
Value*
(in thousands)
Non-Qualified Stock Options
 
 
 
Outstanding at January 1, 2017
251

 
$
29.66

 
1.1
 
$
3,538

Exercised
(223
)
 
$
29.66

 
 
 
 

Forfeited
—

 
$
—

 
 
 
 
Outstanding and exercisable at December 31, 2017
28

 
$
29.66

 
0.1
 
$
780


 * The intrinsic value as of December 31, 2017 represents the amount by which the fair market value of the underlying common stock exceeds the exercise price of the option, and is calculated using the closing price per share of $57.41, as reported by the New York Stock Exchange on December 31, 2017.