XML 30 R17.htm IDEA: XBRL DOCUMENT
v3.7.0.1

Stock-Based Compensation | 6 Months Ended
--- | ---
Jun. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
Stock-Based Compensation | Stock-Based Compensation Under the Company's 2004 Stock Incentive Plan ("2004 Plan"), the Company granted options to purchase shares of the Company's common stock at the fair market value on the date of grant. The options vested over periods of up to three years and have a term of 10 years from date of grant. At its November 2007 meeting, the Company's Compensation Committee decided that restricted common stock awards and stock units ("restricted stock") would be awarded in place of stock options for long-term incentive award grants to employees. Restricted stock granted to employees primarily vests 50% after two years and the remainder after three years from the date of grant. Restricted stock granted to non-employee directors generally vests on the first anniversary date of the grant. In February 2014, the Company's Board of Directors replaced the expired 2004 Plan by adopting the BorgWarner Inc. 2014 Stock Incentive Plan ("2014 Plan"). On April 30, 2014, the Company's stockholders approved the 2014 Plan. Under the 2014 Plan, 8 million shares are authorized for grant, of which approximately 4.8 million shares are available for future issuance as of June 30, 2017. Stock options A summary of the Company’s stock option activity for the six months ended June 30, 2017 is as follows. As of March 31, 2017, there were no outstanding stock options.
| Shares under option (thousands) |  | Weighted average exercise price |  | Weighted average remaining contractual life (in years) |  | Aggregate intrinsic value (in millions)
Outstanding and exercisable at December 31, 2016 | 473 |  |  | $ | 17.47 |  |  | 0.1 |  | $ | 10.4 |
Exercised | (473 | ) |  | $ | 17.47 |  |  |  |  |
Outstanding and exercisable at June 30, 2017 | — |  |  |  |  |  |  |  |  |
Restricted stock The value of restricted stock is determined by the market value of the Company’s common stock at the date of grant. In the first six months of 2017, restricted stock in the amount of 776,753 shares and 26,919 shares were granted to employees and non-employee directors, respectively. The value of the awards is recognized as compensation expense ratably over the restriction periods. As of June 30, 2017, there was $41.4 million of unrecognized compensation expense that will be recognized over a weighted average period of 2.1 years. The Company recorded restricted stock compensation expense of $6.7 million for both three months ended June 30, 2017 and 2016, and $13.5 million and $13.1 million for the six months ended June 30, 2017 and 2016, respectively. A summary of the Company’s nonvested restricted stock for the six months ended June 30, 2017 is as follows:
| Shares subject to restriction (thousands) |  | Weighted average price
Nonvested at December 31, 2016 | 1,429 |  |  | $ | 44.12 |
Granted | 777 |  |  | $ | 40.07 |
Vested | (453 | ) |  | $ | 57.35 |
Forfeited | (28 | ) |  | $ | 41.87 |
Nonvested at March 31, 2017 | 1,725 |  |  | $ | 39.27 |
Granted | 27 |  |  | $ | 41.13 |
Vested | (61 | ) |  | $ | 51.71 |
Forfeited | (28 | ) |  | $ | 38.06 |
Nonvested at June 30, 2017 | 1,663 |  |  | $ | 38.86 |
Total Shareholder Return Performance Share Plans The 2004 and 2014 Plans provide for awarding of performance shares to members of senior management at the end of successive three-year periods based on the Company's performance in terms of total shareholder return relative to a peer group of automotive companies. The Company recorded compensation expense of $2.3 million and $2.1 million for the three months ended June 30, 2017 and 2016, respectively, and $5.4 million and $5.1 million for the six months ended June 30, 2017 and 2016, respectively. Relative Revenue Growth Performance Share Plans In the second quarter of 2016, the Company started a new performance share program to reward members of senior management based on the Company's performance in terms of revenue growth relative to the vehicle market over three-year performance periods. The Company recorded compensation expense of $2.2 million and $2.1 million for the three months ended June 30, 2017 and 2016, respectively, and $5.4 million and $2.1 million for the six months ended June 30, 2017 and 2016, respectively.

X
- Definition The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -URI http://asc.fasb.org/subtopic&trid=2208855 + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum: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