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Stock-Based Compensation (Tables) | 9 Months Ended
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Sep. 30, 2016
Stock-Based Compensation |
Stock-based compensation expense, by award | The Company recorded stock-based compensation expense as follows in the unaudited condensed consolidated statements of income and comprehensive income (in millions):
|  | Three Months Ended September 30, |  | Nine Months Ended September 30, |
|  | 2016 |  | 2015 |  | 2016 |  | 2015 |
Stock options |  | $ | 2.1 |  | $ | 2.0 |  | $ | 5.6 |  | $ | 5.3 |
Restricted stock awards |  | 0.4 |  | 0.2 |  | 1.2 |  | 0.5 |
Restricted stock units |  | — |  | — |  | — |  | — |
Total stock-based compensation |  | $ | 2.5 |  | $ | 2.2 |  | $ | 6.8 |  | $ | 5.8 |
Stock-based compensation expense, cost allocation | The Company recorded stock-based compensation expense as follows in the unaudited condensed consolidated statements of income and comprehensive income (in millions):
|  | Three Months Ended September 30, |  | Nine Months Ended September 30, |
|  | 2016 |  | 2015 |  | 2016 |  | 2015 |
Costs of product revenue |  | $ | 0.4 |  | $ | 0.4 |  | $ | 1.0 |  | $ | 0.9 |
Selling, general and administrative |  | 1.7 |  | 1.4 |  | 4.8 |  | 4.0 |
Research and development |  | 0.4 |  | 0.4 |  | 1.0 |  | 0.9 |
Total stock-based compensation |  | $ | 2.5 |  | $ | 2.2 |  | $ | 6.8 |  | $ | 5.8 |
Assumptions regarding volatility, expected life, dividend yield and risk-free interest rates | Assumptions for the nine months ended September 30, 2016 and 2015 regarding volatility, expected life, dividend yield and risk-free interest rates are required for the Black-Scholes model and are presented in the table below:
|  | 2016 |  | 2015 |
Risk-free interest rates |  | 1.23% - 2.05% |  | 1.58% - 1.89% |
Expected life |  | 5.75 - 7.02 years |  | 6.0 - 6.25 years |
Volatility |  | 33.57% - 41.60% |  | 36.09% - 52.23% |
Expected dividend yield |  | 0.0% - 0.73% |  | 0.0% |
Schedule of stock option activity | Stock option activity for the nine months ended September 30, 2016 was as follows:
|  | Shares Subject to Options |  | Weighted Average Option Price |  | Weighted Average Remaining Contractual Term (Yrs) |  | Aggregate Intrinsic Value (in millions) (b) |
Outstanding at December 31, 2015 |  | 4,637,279 |  | $ | 16.72 |  |  |  |  |
Granted |  | 254,042 |  | 24.66 |  |  |  |  |
Exercised |  | (799,410 | ) | 13.36 |  |  |  |  |
Forfeited |  | (163,037 | ) | 18.99 |  |  |  |  |
Outstanding at September 30, 2016 |  | 3,928,874 |  | $ | 17.82 |  | 6.5 |  | $ | 19.5 |
Exercisable at September 30, 2016 |  | 2,370,900 |  | $ | 15.92 |  | 5.3 |  | $ | 16.0 |
Exercisable and expected to vest at September 30, 2016 (a) |  | 3,831,345 |  | $ | 17.75 |  | 6.4 |  | $ | 19.3 |
| (a) |  | In addition to the options that are vested at September 30, 2016, the Company expects a portion of the unvested options to vest in the future. Options expected to vest in the future are determined by applying an estimated forfeiture rate to the options that are unvested as of September 30, 2016.
| (b) |  | The aggregate intrinsic value is based on the positive difference between the fair value of the Company’s common stock price of $22.65 on September 30, 2016, or the date of exercises, as appropriate, and the exercise price of the underlying stock options.
Restricted stock awards |
Stock-Based Compensation |
Schedule of restricted stock award and restricted stock unit activity | Restricted stock award activity for the nine months ended September 30, 2016 was as follows:
|  | Shares Subject to Restriction |  | Weighted Average Grant Date Fair Value |
Outstanding at December 31, 2015 |  | 243,150 |  | $ | 18.58 |
Granted |  | 13,105 |  | 24.80 |
Vested |  | (81,024 | ) | 17.87 |
Forfeited |  | (1,375 | ) | 16.57 |
Outstanding at September 30, 2016 |  | 173,856 |  | $ | 19.39 |
Restricted stock units |
Stock-Based Compensation |
Schedule of restricted stock award and restricted stock unit activity | Restricted stock unit activity for the nine months ended September 30, 2016 was as follows:
|  | Shares Subject to Restriction |  | Weighted Average Grant Date Fair Value |
Outstanding at December 31, 2015 |  | — |  | $ | — |
Granted |  | 8,427 |  | 25.95 |
Outstanding at September 30, 2016 |  | 8,427 |  | $ | 25.95 |

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- Definition Tabular disclosure of the amount of total share-based compensation cost, including the amounts attributable to each share-based compensation plan and any related tax benefits. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (h)(1) -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901 + Details
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- Definition Tabular disclosure of the allocation of equity-based compensation costs to a given line item on the balance sheet and income statement for the period. This may include the reporting line for the costs and the amount capitalized and expensed. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (h)(1) -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB Topic 14.F) -URI http://asc.fasb.org/extlink&oid=27013229&loc=d3e301413-122809 + Details
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- Definition Tabular disclosure of the number and weighted-average exercise prices (or conversion ratios) for share options (or share units) that were outstanding at the beginning and end of the year, vested and expected to vest, exercisable or convertible at the end of the year, and the number of share options or share units that were granted, exercised or converted, forfeited, and expired during the year. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c)(1) -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901 + Details
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- Definition Tabular disclosure of the significant assumptions used during the year to estimate the fair value of stock options, including, but not limited to: (a) expected term of share options and similar instruments, (b) expected volatility of the entity's shares, (c) expected dividends, (d) risk-free rate(s), and (e) discount for post-vesting restrictions. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (f)(2) -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901 + Details
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