XML 28 R16.htm IDEA: XBRL DOCUMENT
v3.22.2

Stock-Based Compensation | 6 Months Ended
--- | ---
Jun. 30, 2022
Stock-Based Compensation |
Stock-Based Compensation | Note 8—Stock-Based Compensation ​ For the three months ended June 30, 2022 and 2021, the Company’s Income from continuing operations before income taxes was reduced for stock-based compensation expense of $20.9 and $20.0, respectively. In addition, for the three months ended June 30, 2022 and 2021, the Company recognized aggregate income tax benefits (associated with stock-based compensation) of $9.6 and $21.8, respectively, in Provision for income taxes in the accompanying Condensed Consolidated Statements of Income. These aggregate income tax benefits during the three months ended June 30, 2022 and 2021 include excess tax benefits of $7.5 and $19.3, respectively, from option exercises. ​ For the six months ended June 30, 2022 and 2021, the Company’s Income from continuing operations before income taxes was reduced for stock-based compensation expense of $40.6 and $39.0, respectively. In addition, for the six months ended June 30, 2022 and 2021, the Company recognized aggregate income tax benefits (associated with stock-based compensation) of $15.4 and $26.4, respectively, in Provision for income taxes in the accompanying Condensed Consolidated Statements of Income. These aggregate income tax benefits during the six months ended June 30, 2022 and 2021 include excess tax benefits of $11.3 and $22.0, respectively, from option exercises. ​ The impact associated with recognizing excess tax benefits from option exercises in the provision for income taxes on our consolidated financial statements could result in significant fluctuations in our effective tax rate in the future, since the provision for income taxes will be impacted by the timing and intrinsic value of future stock-based compensation award exercises. ​ Stock-based compensation expense includes the estimated effects of forfeitures, which are adjusted over the requisite service period to the extent actual forfeitures differ or are expected to differ from such estimates. Changes in estimated forfeitures are recognized in the period of change and impact the amount of expense to be recognized in future periods. The expense incurred for stock-based compensation plans is included in Selling, general and administrative expenses in the accompanying Condensed Consolidated Statements of Income. ​ Stock Options ​ In May 2017, the Company adopted the 2017 Stock Purchase and Option Plan for Key Employees of Amphenol and Subsidiaries (the “2017 Employee Option Plan”), which provided for the issuance of 60,000,000 shares. In March 2021, the Board authorized and approved the Amended and Restated 2017 Stock Purchase and Option Plan for Key Employees of Amphenol and Subsidiaries (the “Amended 2017 Employee Option Plan” and, together with the 2017 Employee Option Plan, the “2017 Option Plan”), which among other things, increased the number of shares reserved for issuance under the plan by 40,000,000 shares. The Amended 2017 Employee Option Plan was approved by the Company’s stockholders and became effective on May 19, 2021. As of June 30, 2022, there were 36,674,120 shares of Common Stock available for the granting of additional stock options under the 2017 Option Plan. Prior to the approval of the 2017 Employee Option Plan, the Company issued stock options under the 2009 Stock Purchase and Option Plan for Key Employees of Amphenol and Subsidiaries, and its amendment (the “2009 Employee Option Plan”). No additional stock options will be granted under the 2009 Employee Option Plan. Options granted under the 2017 Option Plan and the 2009 Employee Option Plan generally vest ratably over a period of five years from the date of grant and are generally exercisable over a period of ten years from the date of grant. ​ Stock option activity for the three and six months ended June 30, 2022 was as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | Weighted | ​ | ​ | ​ |
​ | ​ | ​ | ​ | ​ | ​ | Average | ​ | Aggregate |
​ | ​ | ​ | ​ | Weighted | ​ | Remaining | ​ | Intrinsic |
​ | ​ | ​ | ​ | Average | ​ | Contractual | ​ | Value | ​
​ |  | Options |  | Exercise Price |  | Term (in years) |  | (in millions) |
Options outstanding at January 1, 2022 |  | 65,300,748 | ​ | $ | 42.00 |  | 6.47 | ​ | $ | 2,968.8 | ​
Options granted |  | 532,721 | ​ |  | 85.92 | ​ | ​ | ​ | ​ | ​ | ​
Options exercised |  | (646,759) | ​ |  | 30.24 | ​ | ​ | ​ | ​ | ​ | ​
Options forfeited |  | (136,140) | ​ |  | 47.07 | ​ | ​ | ​ | ​ | ​ | ​
Options outstanding at March 31, 2022 |  | 65,050,570 | ​ | ​ | 42.46 | ​ | 6.27 | ​ | ​ | 2,145.0 | ​
Options granted |  | 6,389,410 | ​ |  | 67.59 | ​ | ​ | ​ | ​ | ​ | ​
Options exercised |  | (819,522) | ​ |  | 27.16 | ​ | ​ | ​ | ​ | ​ | ​
Options forfeited |  | (182,370) | ​ |  | 48.89 | ​ | ​ | ​ | ​ | ​ | ​
Options outstanding at June 30, 2022 |  | 70,438,088 | ​ | $ | 44.91 |  | 6.41 | ​ | $ | 1,420.3 | ​
Vested and non-vested options expected to vest at June 30, 2022 |  | 67,395,444 | ​ | $ | 44.50 |  | 6.33 | ​ | $ | 1,385.4 | ​
Exercisable options at June 30, 2022 |  | 43,420,334 | ​ | $ | 38.13 |  | 5.25 | ​ | $ | 1,142.9 | ​
​ A summary of the status of the Company’s non-vested options as of June 30, 2022 and changes during the three and six months then ended is as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | ​ |  | Weighted |
​ | ​ | ​ | ​ | Average | ​
​ | ​ | ​ | ​ | Fair Value at | ​
​ | ​ | Options | ​ | Grant Date |
Non-vested options at January 1, 2022 |  | 31,380,283 | ​ | $ | 8.34 | ​
Options granted |  | 532,721 | ​ |  | 17.97 | ​
Options vested |  | (59,200) | ​ |  | 10.69 | ​
Options forfeited |  | (136,140) | ​ |  | 7.68 | ​
Non-vested options at March 31, 2022 |  | 31,717,664 | ​ | ​ | 8.50 | ​
Options granted |  | 6,389,410 | ​ |  | 16.68 | ​
Options vested |  | (10,914,950) | ​ |  | 7.16 | ​
Options forfeited |  | (182,370) | ​ |  | 8.37 | ​
Non-vested options at June 30, 2022 |  | 27,009,754 | ​ | $ | 10.98 | ​
​ During the three and six months ended June 30, 2022 and 2021, the following activity occurred under the Company’s option plans: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | Three Months Ended |  | Six Months Ended |
​ | ​ | June 30, | ​ | June 30, | ​
​ | ​ | 2022 | ​ | 2021 | ​ | 2022 | ​ | 2021 | ​
Total intrinsic value of stock options exercised | ​ | $ | 34.9 | ​ | $ | 109.6 | ​ | $ | 69.2 | ​ | $ | 138.5 | ​
Total fair value of stock options vested | ​ |  | 78.1 | ​ |  | 70.4 | ​ |  | 78.8 | ​ |  | 70.8 | ​
​ As of June 30, 2022, the total compensation cost related to non-vested options not yet recognized was approximately $263.3 with a weighted average expected amortization period of 3.72 years. ​ The grant-date fair value of each option grant under the 2009 Employee Option Plan and the 2017 Option Plan is estimated using the Black-Scholes option pricing model. The grant-date fair value of each share grant is determined based on the closing share price of the Company’s Common Stock on the date of the grant. The fair value is then amortized on a straight-line basis over the requisite service period of the awards, which is generally the vesting period. Use of a valuation model for option grants requires management to make certain assumptions with respect to selected model inputs. Expected share price volatility is calculated based on the historical volatility of the Common Stock and implied volatility derived from related exchange traded options. The average expected life is based on the contractual term of the option and expected exercise and historical experience. The risk-free interest rate is based on U.S. Treasury zero-coupon issuances with a remaining term equal to the expected life assumed at the date of grant. The expected annual dividend per share is based on the Company’s dividend rate. ​ Restricted Stock ​ In 2012, the Company adopted the 2012 Restricted Stock Plan for Directors of Amphenol Corporation (the “2012 Directors Restricted Stock Plan”). The 2012 Directors Restricted Stock Plan is administered by the Board. As of June 30, 2022, the number of restricted shares available for grant under the 2012 Directors Restricted Stock Plan was 120,047. Restricted shares granted under the 2012 Directors Restricted Stock Plan vest on the earlier of the first anniversary of the date of grant or the day immediately prior to the date of the next regular annual meeting of the Company’s stockholders following such date of grant. Grants under the 2012 Directors Restricted Stock Plan entitle the holder to receive shares of the Company’s Common Stock without payment. ​ Restricted share activity for the three and six months ended June 30, 2022 was as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | Weighted Average | ​
​ | ​ | ​ | ​ | ​ | ​ | Remaining | ​
​ | ​ | Restricted | ​ | Fair Value at | ​ | Amortization | ​
​ |  | Shares |  | Grant Date |  | Term (in years) |
Restricted shares outstanding at January 1, 2022 |  | 21,061 | ​ | $ | 66.92 | ​ | 0.38 | ​
Restricted shares granted |  | — | ​ |  | — | ​ | ​ | ​
Restricted shares outstanding at March 31, 2022 |  | 21,061 | ​ | ​ | 66.92 |  | 0.13 | ​
Shares vested and issued |  | (21,061) | ​ |  | 66.92 | ​ | ​ | ​
Restricted shares granted |  | 21,312 | ​ |  | 67.59 | ​ | ​ | ​
Restricted shares outstanding at June 30, 2022 |  | 21,312 | ​ | $ | 67.59 |  | 0.88 | ​
​ As of June 30, 2022, the total compensation cost related to non-vested restricted shares not yet recognized was approximately $1.3 (with a weighted average expected amortization period of 0.88 years).

X
- Definition The entire disclosure for share-based payment arrangement. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=128089324&loc=d3e5070-113901 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI https://asc.fasb.org/topic&trid=2228938 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (l) -URI https://asc.fasb.org/extlink&oid=128089324&loc=d3e5070-113901 Reference 4: http://www.xbrl.org/2003/role/exampleRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a)(1) -URI https://asc.fasb.org/extlink&oid=128089324&loc=d3e5070-113901 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (h)(2)(i) -URI https://asc.fasb.org/extlink&oid=128089324&loc=d3e5070-113901 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (h)(2) -URI https://asc.fasb.org/extlink&oid=128089324&loc=d3e5070-113901 + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

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