XML 31 R21.htm IDEA: XBRL DOCUMENT
v3.8.0.1

Stock-Based Compensation | 9 Months Ended
--- | ---
Sep. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
Stock-Based Compensation |
15) | Stock-Based Compensation
In connection with the completion of the Newport Merger, the Company assumed:
| • |  | all restricted stock units (“RSUs”) granted under any Newport equity plan that were outstanding immediately prior to the effective time of the Newport Merger, and as to which shares of Newport common stock were not fully distributed in connection with the closing of the Newport Merger, and
| • |  | all stock appreciation rights (“SARs”) granted under any Newport equity plan, whether vested or unvested, that were outstanding immediately prior to the effective time of the Newport Merger.
As of the effective time of the Newport Merger, based on a formula provided in the Merger Agreement, (a) the Newport RSUs were converted automatically into RSUs with respect to 360,674 shares of the Company’s common stock (the “Assumed RSUs”), and (b) the Newport stock appreciation rights were converted automatically into stock appreciation rights with respect to 899,851 shares of the Company’s common stock (the “Assumed SARs”). Included in the total number of Assumed RSUs were 36,599 RSUs for outside directors that were part of the Newport Deferred Compensation Plan (the “DC Plan”), from which 19,137 underlying shares were released in May 2016, and 5,515 underlying shares were released in May 2017. Combined with an additional 286 shares that were added to the DC Plan due to reinvested dividends as of September 30, 2017, 12,233 RSUs remain outstanding under the DC Plan. These Assumed RSUs will not become issued shares until their respective release dates. The shares of the Company’s common stock that are subject to the Assumed SARs and the Assumed RSUs are issuable pursuant to the Company’s 2014 Stock Incentive Plan (the “Plan”). The 1,260,525 shares of the Company’s common stock that are issuable pursuant to the Assumed RSUs and the Assumed SARs under the Plan were registered under the Securities Act of 1933, as amended (the “Securities Act”), on a registration statement on Form S-8. These shares are in addition to the 18,000,000 shares of the Company’s common stock reserved for issuance under the Plan and previously registered under the Securities Act on a registration statement on Form S-8. During the nine months ended September 30, 2017, the Company granted 388,137 RSUs with a weighted average grant date fair value of $67.58. There were no SARs granted during the nine months ended September 30, 2017. The total stock-based compensation expense included in the Company’s consolidated statements of income and comprehensive income was as follows:
|  | Three Months Ended September 30, |  |  | Nine Months Ended September 30, |
|  | 2017 |  |  | 2016 |  |  | 2017 |  |  | 2016 |
Cost of revenues |  | $ | 1,016 |  |  | $ | 666 |  |  | $ | 3,133 |  |  | $ | 1,996 |
Research and development expense |  |  | 712 |  |  |  | 551 |  |  |  | 2,284 |  |  |  | 1,614 |
Selling, general and administrative expense |  |  | 3,117 |  |  |  | 3,941 |  |  |  | 14,417 |  |  |  | 16,216 |
Total pre-tax stock-based compensation expense |  | $ | 4,845 |  |  | $ | 5,158 |  |  | $ | 19,834 |  |  | $ | 19,826 |
At September 30, 2017, the total compensation expense related to unvested stock-based awards granted to employees, officers and directors under the Plan that had not been recognized was $25,051, net of estimated forfeitures. The future compensation expense is recognized on a straight-line basis over the requisite service period, net of estimated forfeitures except for retirement eligible employees in which the Company expenses the fair value of the grant in the period the grant is issued. The Company considers many factors when estimating expected forfeitures, including types of awards and historical experience. Actual results and future changes in estimates may differ substantially from the Company’s current estimates. The following table presents the activity for RSUs under the Plan:
|  | Nine Months Ended September 30, 2017 |
|  | Outstanding RSUs |  |  | Weighted Average Grant Date Fair Value |
RSUs – beginning of period |  |  | 1,325,516 |  |  | $ | 34.38 |
Accrued dividend shares |  |  | 99 |  |  |  | 74.58 |
Granted |  |  | 388,137 |  |  |  | 67.58 |
Vested |  |  | (681,365 | ) |  |  | 34.53 |
Forfeited |  |  | (71,783 | ) |  |  | 37.45 |
RSUs – end of period |  |  | 960,604 |  |  | $ | 47.46 |
The following table presents the activity for SARs under the Plan:
|  | Nine Months Ended September 30, 2017 |
|  | Outstanding SARs |  |  | Weighted Average Grant Date Fair Value |
SARs – beginning of period |  |  | 599,334 |  |  | $ | 28.10 |
Granted |  |  | — |  |  |  | — |
Exercised |  |  | (258,854 | ) |  |  | 27.52 |
Forfeited or expired |  |  | (16,782 | ) |  |  | 27.88 |
SARs Outstanding – end of period |  |  | 323,698 |  |  | $ | 28.58 |
At September 30, 2017 the Company’s outstanding and exercisable SARs, the weighted-average base value, the weighted average remaining contractual life and the aggregate intrinsic value thereof, were as follows:
|  | Number of Shares |  |  | Weighted Average Base Value |  |  | Weighted Average Remaining Contractual Life (years) |  |  | Aggregate Intrinsic Value |
SARs outstanding |  |  | 323,698 |  |  | $ | 28.58 |  |  |  | 3.4 |  |  | $ | 21,323 |
SARs exercisable |  |  | 260,049 |  |  | $ | 27.95 |  |  |  | 3.1 |  |  | $ | 17,292 |

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