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Share-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of Stock-based Compensation Expense

A summary of stock-based compensation expense for the three months ended March 31, 2016 and 2015 is as follows:



	For the Three Months Ended March 31,
	2016		2015
Stock options	$	878,000	$	719,000
Restricted stock	135,000		58,000
Employee Stock Purchase Plan ("ESPP")	105,000		107,000
Total pre-tax stock-based compensation expense charged against income ⁽¹⁾	$	1,118,000	$	884,000


⁽¹⁾	Stock-based compensation expense is recorded in selling, general and administrative expense in our consolidated statements of comprehensive income.

Summary of Other Information of Stock Option Plans

Other information pertaining to activity of our stock awards during the three months ended March 31, 2016 and 2015 were as follows:



	March 31, 2016		March 31, 2015
Total grant-date fair value of stock options and awards granted	$	5,202,000	$	4,027,000
Total fair value of stock options and awards vested during period	$	3,092,000	$	2,719,000

A summary of our stock options outstanding under the 2012 Plan as of December 31, 2015 and changes during the three months ended March 31, 2016 is as follows:



	Stock Options Outstanding
	Number of Shares		Weighted Average Exercise Price
December 31, 2015	2,461,000		$	22.16
Granted	569,000		$	34.14
Cancelled	(13,000	)	$	28.39
Exercised	(124,000	)	$	20.83
March 31, 2016	2,893,000		$	24.54

Summarized Information of Stock Options Outstanding

The following table summarizes other information about our stock options at March 31, 2016:



	Stock Options
Range of exercise prices	$10.39-$34.14
Outstanding:
Weighted average remaining contractual life (years)	7.0
Aggregate intrinsic value	$	35,492,000
Exercisable:
Number of shares	1,346,000
Weighted average remaining contractual life (years)	5.2
Aggregate intrinsic value	$	24,454,000
Exercised:
Aggregate intrinsic value	$	1,737,000

Assumption For Fair Value of Options Granted

The fair value of stock option awards granted in 2016 and 2015 was estimated on the date of grant using the Black-Scholes option valuation model using the following assumptions:



	Three months ended March 31,
	2016	2015
Risk-free interest rate	2.0%	1.9%
Weighted average expected life in years	5.8 years	5.8 years
Expected volatility	26.0%	27.2%
Dividend yield	2.0%	2.2%

Schedule of Restricted Stock Outstanding Stock-based Compensation

A summary of our outstanding stock-based compensation as of December 31, 2015 and changes during the three months ended March 31, 2016 is as follows:



	Shares		Weighted Average Grant Date Fair Value
December 31, 2015	40,000		$	29.10
Granted	44,000		$	34.14
Vested	(9,000	)	$	28.76
Forfeited	—		$	—
March 31, 2016	75,000		$	32.10

Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions

The stock-based compensation expense associated the options granted under our ESPP was estimated on the date of grant using the Black-Scholes option valuation model using the following assumptions:



	Three months ended March 31,
	2016	2015
Risk-free interest rate	0.58%	0.18%
Weighted average expected life in years	1.0 year	1.0 year
Expected volatility	19.7%	19.2%
Dividend yield	2.0%	2.2%