XML 21 R10.htm IDEA: XBRL DOCUMENT
v3.7.0.1

STOCKHOLDERS' EQUITY | 6 Months Ended
--- | ---
Jun. 30, 2017
STOCKHOLDERS' EQUITY [Abstract] |
STOCKHOLDERS' EQUITY | NOTE 3 – STOCKHOLDERS’ EQUITY STOCK-BASED COMPENSATION The Company’s results for the three and six months ended June 30, 2017 and 2016 reflected the following stock-based compensation cost, and such compensation cost had the following effects on net earnings:
|  | Increase/(Decrease) for the Three Months Ended June 30, |
|  |  | 2017 |  |  |  | 2016 |
Cost of sales |  | $ | (167 | ) |  | $ | 260 |
Operating expenses |  |  | 1,210 |  |  |  | 1,494 |
Net earnings |  |  | (663 | ) |  |  | (1,080 | )
|  | Increase/(Decrease) for the Six Months Ended June 30, |
|  |  | 2017 |  |  |  | 2016 |
Cost of sales |  | $ | 144 |  |  | $ | 520 |
Operating expenses |  |  | 2,740 |  |  |  | 3,431 |
Net earnings |  |  | (1,830 | ) |  |  | (2,473 | )
As allowed by ASC 718, the Company has made an estimate of expected forfeitures based on its historical experience and is recognizing compensation cost only for those stock-based compensation awards expected to vest. The Company’s stock incentive plans allow for the granting of stock awards and options to purchase common stock. Both incentive stock options and nonqualified stock options can be awarded under the plans. No option will be exercisable for longer than ten years after the date of grant. The Company has approved and reserved a number of shares to be issued upon exercise of the outstanding options that is adequate to cover all exercises. As of June 30, 2017, the plans had 3,285,763 shares available for future awards. Compensation expense for stock options and stock awards is recognized on a straight-line basis over the vesting period, generally three years for stock options, four years for employee restricted stock awards, three years for employee performance share awards, and four years for non-employee director restricted stock awards. Certain awards provide for accelerated vesting if there is a change in control (as defined in the plans) or other qualifying events. Option activity for the six months ended June 30, 2017 and 2016 is summarized below:
For the six months ended June 30, 2017 |  | Shares (000s) |  |  | Weighted Average Exercise Price |  |  | Aggregate Intrinsic Value |  |  | Weighted Average Remaining Contractual Term |
Outstanding as of December 31, 2016 |  |  | 1,066 |  |  | $ | 45.32 |  |  | $ | 41,161 |  |  |  |
Granted |  |  | 220 |  |  |  | 85.23 |  |  |  |  |  |  |  |
Exercised |  |  | (150 | ) |  |  | 32.54 |  |  |  |  |  |  |  |
Forfeited |  |  | (39 | ) |  |  | 70.57 |  |  |  |  |  |  |  |
Cancelled |  |  | (19 | ) |  |  | 58.61 |  |  |  |  |  |  |  |
Outstanding as of June 30, 2017 |  |  | 1,078 |  |  | $ | 54.10 |  |  | $ | 27,001 |  |  |  | 6.6 |
Exercisable as of June 30, 2017 |  |  | 603 |  |  | $ | 40.83 |  |  | $ | 22,249 |  |  |  | 4.7 |
For the six months ended June 30, 2016 |  | Shares (000s) |  |  | Weighted Average Exercise Price |  |  | Aggregate Intrinsic Value |  |  | Weighted Average Remaining Contractual Term |
Outstanding as of December 31, 2015 |  |  | 1,017 |  |  | $ | 37.29 |  |  | $ | 23,927 |  |  |  |
Granted |  |  | 338 |  |  |  | 60.78 |  |  |  |  |  |  |  |
Exercised |  |  | (86 | ) |  |  | 34.93 |  |  |  |  |  |  |  |
Forfeited |  |  | - |  |  |  | - |  |  |  |  |  |  |  |
Outstanding as of June 30, 2016 |  |  | 1,269 |  |  | $ | 43.71 |  |  | $ | 20,626 |  |  |  | 6.6 |
Exercisable as of June 30, 2016 |  |  | 742 |  |  | $ | 33.03 |  |  | $ | 19,769 |  |  |  | 4.9 |
ASC 718 requires companies to measure the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award. The fair value of each option grant is estimated on the date of the grant using the Black-Scholes option-pricing model with the following weighted average assumptions: dividend yields of 0.5% and 0.5%; expected volatilities of 30% and 34%; risk-free interest rates of 1.8% and 1.2%; and expected lives of 4.6 and 5.0 years, in each case for the six months ended June 30, 2017 and 2016, respectively. The Company used a projected expected life for each award granted based on historical experience of employees’ exercise behavior. Expected volatility is based on the Company’s historical volatility levels. Dividend yields are based on the Company’s historical dividend yields. Risk-free interest rates are based on the implied yields currently available on U.S. Treasury zero coupon issues with a remaining term equal to the expected life. Other information pertaining to option activity during the three and six months ended June 30, 2017 and 2016 was as follows:
| Three Months Ended June 30, |  |  | Six Months Ended June 30, |
| 2017 |  | 2016 |  |  | 2017 |  |  | 2016 |
Weighted-average fair value of options granted |  | $ | 20.54 |  |  | $ | 17.80 |  |  | $ | 23.21 |  |  | $ | 18.45 |
Total intrinsic value of stock options exercised ($000s) |  | $ | 2,375 |  |  | $ | 1,242 |  |  | $ | 7,596 |  |  | $ | 2,257 |
Non-vested restricted stock activity for the six months ended June 30, 2017 and 2016 is summarized below:
Six months ended June 30, 2017 |  | Shares (000s) |  |  | Weighted Average Grant Date Fair Value |
Non-vested balance as of December 31, 2016 |  |  | 102 |  |  | $ | 54.18 |
Granted |  |  | 9 |  |  |  | 85.40 |
Vested |  |  | (41 | ) |  |  | 50.07 |
Forfeited |  |  | (4 | ) |  |  | 55.45 |
Non-vested balance as of June 30, 2017 |  |  | 66 |  |  | $ | 61.05 |
Six months ended June 30, 2016 |  | Shares (000s) |  |  | Weighted Average Grant Date Fair Value |
Non-vested balance as of December 31, 2015 |  |  | 150 |  |  | $ | 47.46 |
Granted |  |  | 18 |  |  |  | 60.85 |
Vested |  |  | (52 | ) |  |  | 42.36 |
Forfeited |  |  | - |  |  |  | - |
Non-vested balance as of June 30, 2016 |  |  | 116 |  |  | $ | 51.83 |
Non-vested performance share activity for the six months ended June 30, 2017 and 2016 is summarized below:
Six months ended June 30, 2017 |  | Shares (000s) |  |  | Weighted Average Grant Date Fair Value |
Non-vested balance as of December 31, 2016 |  |  | 34 |  |  | $ | 61.06 |
Granted |  |  | 16 |  |  |  | 93.85 |
Vested |  |  | - |  |  |  | - |
Forfeited |  |  | (7 | ) |  |  | 69.18 |
Non-vested balance as of June 30, 2017 |  |  | 43 |  |  | $ | 72.26 |
Six months ended June 30, 2016 |  | Shares (000s) |  |  | Weighted Average Grant Date Fair Value |
Non-vested balance as of December 31, 2015 |  |  | 20 |  |  | $ | 58.77 |
Granted |  |  | 21 |  |  |  | 63.15 |
Vested |  |  | - |  |  |  | - |
Forfeited |  |  | (4 | ) |  |  | 60.87 |
Non-vested balance as of June 30, 2016 |  |  | 37 |  |  | $ | 61.04 |
The performance share (“PS”) awards provide the recipients the right to receive a certain number of shares of the Company’s common stock in the future, subject to an (1) EBITDA performance hurdle, where vesting is dependent upon the Company achieving a certain EBITDA percentage growth over the performance period, and (2) relative total shareholder return (TSR) where vesting is dependent upon the Company’s TSR performance over the performance period relative to a comparator group consisting of the Russell 2000 index constituents. Expense is measured based on the fair value at the date of grant utilizing a Black-Scholes methodology to produce a Monte-Carlo simulation model which allows for the incorporation of the performance hurdles that must be met before the PS vests. The assumptions used in the fair value determination were risk free interest rates of 1.5% and 0.88%; dividend yields of 0.6% and 0.6%; volatilities of 32% and 32%; and initial TSR’s of 8.2% and -6.6%, in each case for the six months ended June 30, 2017 and 2016, respectively. Expense is based on the estimated number of shares expected to vest, assuming the requisite service period is rendered and the probable outcome of the performance condition is achieved. The estimate is revised if subsequent information indicates that the actual number of shares likely to vest differs from previous estimates. Expense is ultimately adjusted based on the actual achievement of service and performance targets. The PS will cliff vest 100% at the end of the third year following the grant in accordance with the performance metrics set forth. As of June 30, 2017 and 2016, there was $10,754 and $12,167, respectively, of total unrecognized compensation cost related to non-vested share-based compensation arrangements granted under the plans. As of June 30, 2017, the unrecognized compensation cost is expected to be recognized over a weighted-average period of approximately 1.5 years. The Company estimates that share-based compensation expense for the year ended December 31, 2017 will be approximately $6,200. REPURCHASE OF COMMON STOCK The Company has an approved stock repurchase program. The total authorization under this program is 3,763,038 shares. Since the inception of the program in June 1999, a total of 2,171,934 shares have been purchased, of which no shares remained in treasury at June 30, 2017. During the six months ended June 30, 2017 and 2016, a total of 21,099 and 23,651 shares, respectively, have been purchased at an average cost of $82.53 and $62.51 per share, respectively. The Company intends to acquire shares from time to time at prevailing market prices if and to the extent it deems it advisable to do so based on its assessment of corporate cash flow, market conditions and other factors.

X
- References No definition available. + Details
Name: | us-gaap_StockholdersEquityNoteAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section S99 -Paragraph 4 -Subparagraph (SAB Topic 4.E) -URI http://asc.fasb.org/extlink&oid=27010918&loc=d3e74567-122707 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21484-112644 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02(29)) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21488-112644 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(e)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02(31)) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section S99 -Paragraph 4 -Subparagraph (SAB Topic 4.C) -URI http://asc.fasb.org/extlink&oid=27012166&loc=d3e187143-122770 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02(30)) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 6 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21506-112644 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(d)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.3-04) -URI http://asc.fasb.org/extlink&oid=27012166&loc=d3e187085-122770 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6405834&loc=d3e23285-112656 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Glossary Preferred Stock -URI http://asc.fasb.org/extlink&oid=6521494 Reference 15: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21463-112644 Reference 16: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21564-112644 + Details
Name: | us-gaap_StockholdersEquityNoteDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration