Annual report pursuant to Section 13 and 15(d)

Stock-Based Compensation (Tables)

v3.19.3.a.u2
Stock-Based Compensation (Tables)
12 Months Ended
Dec. 31, 2019
Share-based Payment Arrangement [Abstract]  
Schedule of Stock-Based Compensation Expense
Stock-based compensation expense consisted of the following:
Year Ended December 31,   
(in thousands) 2019 2018 2017
Cost of sales $ 278    $ 250    $ 243   
SG&A expense 17,554    14,041    11,043   
Pre-tax stock-based compensation expense 17,832    14,291    11,286   
Income tax benefits (4,009)   (3,218)   (1,778)  
Total stock-based compensation expense, net of tax $ 13,823    $ 11,073    $ 9,508   
Schedule of Weighted Average Assumptions
The following table presents the weighted average assumptions for stock options granted and resulting fair value in the years ended December 31:
2019 2018 2017
Expected option term 4.50 years 4.50 years 4.54 years
Expected stock price volatility 27.14%    28.39%    28.91%   
Risk-free interest rate 2.49%    2.47%    1.73%   
Expected annual dividend yield 1.03%    1.15%    1.29%   
Weighted average grant date fair value per share $22.51    $18.86    $13.11   
Summary of Stock Option Activity
The following table summarizes stock option activity under the Plan:
Number of
Shares
 Weighted
Average
Exercise
Price
Weighted Average Remaining Contractual Life
Aggregate Intrinsic Value (1)
(in thousands)
Options outstanding at January 1, 2017 2,151,542    $ 37.40    6.39 $ 45,253   
Granted 540,537    55.90   
Cancelled (246,450)   50.62   
Exercised (675,742)   29.52   
Options outstanding at December 31, 2017 1,769,887    44.22    6.69 48,962   
Granted 402,010    76.48   
Cancelled (67,440)   60.75   
Exercised (499,836)   36.98   
Options outstanding at December 31, 2018 1,604,621    53.86    6.95 48,703   
Granted 395,653    93.98   
Cancelled (68,275)   74.10   
Exercised (452,325)   43.76   
Options outstanding at December 31, 2019 1,479,674    $ 66.74    7.11 $ 49,930   
Options vested and expected to vest at December 31, 2019 1,421,269    $ 66.05    7.05 $ 48,915   
Options exercisable at December 31, 2019 605,469    $ 50.57    5.48 $ 30,048   
Schedule Of Weighted Average Assumptions for Restricted Stock Units
The following table presents the weighted average assumptions for restricted stock units granted in the years ended December 31:
2019 2018 2017
Vesting period 3.76 years 3.77 years 3.87 years
Expected annual dividend yield 0.97%    1.15%    1.30%   
Weighted average grant date fair value per restricted stock unit granted $94.58    $73.74    $52.45   
Summary of Restricted Stock Unit Activity
The following table summarizes the restricted stock unit activity under the Plan:
Number of
Shares
Weighted Average
Grant Date Fair Value Per Share
Restricted stock units outstanding at January 1, 2017 466,475    $ 47.23   
Granted 270,169    52.45   
Vested(1)
(176,654)   42.32   
Forfeited (110,515)   48.13   
Restricted stock units outstanding at December 31, 2017 449,475    52.07   
Granted 197,299    73.74   
Vested(1)
(155,847)   50.97   
Forfeited (66,926)   53.19   
Restricted stock units outstanding at December 31, 2018
424,001    62.38   
Granted 177,618    94.58   
Vested(1)
(163,195)   60.45   
Forfeited (33,320)   72.35   
Restricted stock units outstanding at December 31, 2019 405,104    $ 76.45