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Stock Incentive Plan | 12 Months Ended
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Dec. 31, 2016
Share-based Compensation [Abstract] |
Stock Incentive Plan | Stock Incentive Plan Under the 2006 Plan, up to 10,000,000 shares of AGCO common stock may be issued. As of December 31, 2016, of the 10,000,000 shares reserved for issuance under the 2006 Plan, approximately 3,491,118 shares were available for grant, assuming the maximum number of shares are earned related to the performance award grants discussed below. The 2006 Plan allows the Company, under the direction of the Board of Directors’ Compensation Committee, to make grants of performance shares, stock appreciation rights, stock options, restricted stock units and restricted stock awards to employees, officers and non-employee directors of the Company. Long-Term Incentive Plan and Related Performance Awards The Company’s primary long-term incentive plan is a performance share plan that provides for awards of shares of the Company’s common stock based on achieving financial targets, such as targets for earnings per share, return on invested capital, operating margin and selling, general and administrative expenses and overhead levels, as determined by the Company’s Board of Directors. The stock awards under the 2006 Plan are earned over a performance period, and the number of shares earned is determined based on the cumulative or average results for the specified period, depending on the measurement. Performance periods for the Company’s primary long-term incentive plan are consecutive and overlapping three-year cycles, and performance targets are set at the beginning of each cycle. The primary long-term incentive plan provides for participants to earn 33% to 200% of the target awards depending on the actual performance achieved, with no shares earned if performance is below the established minimum target. Awards earned under the 2006 Plan are paid in shares of common stock at the end of each performance period. The compensation expense associated with these awards is amortized ratably over the vesting or performance period based on the Company’s projected assessment of the level of performance that will be achieved and earned. Compensation expense recorded during 2016, 2015 and 2014 with respect to awards granted was based upon the stock price as of the grant date. The weighted average grant-date fair value of performance awards granted under the 2006 Plan during 2016, 2015 and 2014 was as follows:
|  | Years Ended December 31,
|  | 2016 |  | 2015 |  | 2014
Weighted average grant-date fair value |  | $ | 47.93 |  |  | $ | 45.54 |  |  | $ | 53.87 |
During 2016, the Company granted 1,351,350 performance awards related to varying performance periods. The awards granted assume the maximum target level of performance is achieved. Performance award transactions during 2016 were as follows and are presented as if the Company were to achieve its maximum levels of performance under the plan:
Shares awarded but not earned at January 1 | 1,449,396 |
Shares awarded | 1,351,350 |
Shares forfeited or unearned | (818,626 | )
Shares earned and vested | — |
Shares awarded but not earned at December 31 | 1,982,120 |
The 2006 Plan allows for the participant to have the option of forfeiting a portion of the shares awarded in lieu of a cash payment contributed to the participant’s tax withholding to satisfy the participant’s statutory minimum federal, state and employment taxes which would be payable at the time of grant. Based on the level of performance achieved as of December 31, 2016 and 2015, no shares were earned and vested or issued. As of December 31, 2016, the total compensation cost related to unearned performance awards not yet recognized, assuming the Company’s current projected assessment of the level of performance that will be achieved and earned, was approximately $37.9 million, and the weighted average period over which it is expected to be recognized is approximately two years. This estimate is based on the current projected levels of performance of outstanding awards. The compensation cost not yet recognized could be higher or lower based on actual achieved levels of performance. Restricted Stock Units During the year ended December 31, 2016, the Company granted 141,202 restricted stock unit (“RSU”) awards. These awards entitle the participant to receive one share of the Company’s common stock for each RSU granted and vest one-third per year over a three-year requisite service period. Dividends will accrue on all unvested grants until the end of each vesting date within this grant’s three-year requisite service period. In January 2016, the Company amended its RSU award agreement such that dividends will not accrue on unvested grants over the requisite service period on all future RSU grants. The compensation expense associated with these awards is being amortized ratably over the requisite service period for the awards that are expected to vest. The weighted average grant-date fair value of the RSUs granted under the 2006 Plan during the year ended December 31, 2016 and 2015 was $45.10 and $44.03, respectively. RSU transactions during the year ended December 31, 2016 were as follows:
Shares awarded but not vested at January 1 | 137,396 |
Shares awarded | 141,202 |
Shares forfeited | (9,418 | )
Shares vested | (46,450 | )
Shares awarded but not vested at December 31 | 222,730 |
As of December 31, 2016, the total compensation cost related to the unvested RSUs not yet recognized was approximately $6.4 million, and the weighted average period over which it is expected to be recognized is approximately two years. Stock-settled Appreciation Rights In addition to the performance share plans, certain executives and key managers are eligible to receive grants of SSARs. The SSARs provide a participant with the right to receive the aggregate appreciation in stock price over the market price of the Company’s common stock at the date of grant, payable in shares of the Company’s common stock. The participant may exercise his or her SSARs at any time after the grant is vested but no later than seven years after the date of grant. The SSARs vest ratably over a four-year period from the date of grant. SSAR award grants made to certain executives and key managers under the 2006 Plan are made with the base price equal to the price of the Company’s common stock on the date of grant. The Company recorded stock compensation expense of approximately $3.8 million, $5.0 million and $5.2 million associated with SSAR award grants during 2016, 2015 and 2014, respectively. The compensation expense associated with these awards is being amortized ratably over the vesting period. The Company estimated the fair value of the grants using the Black-Scholes option pricing model. The weighted average grant-date fair value of SSARs granted under the 2006 Plan and the weighted average assumptions under the Black-Scholes option model were as follows for the years ended December 31, 2016, 2015 and 2014:
| Years Ended December 31,
| 2016 |  | 2015 |  | 2014
Weighted average grant-date fair value | $ | 7.98 |  |  | $ | 7.41 |  |  | $ | 13.11 |
Weighted average assumptions under Black-Scholes option model: |  |  |  |  |  |  |  |
Expected life of awards (years) | 3.0 |  |  | 3.0 |  |  | 3.0 |
Risk-free interest rate | 1.1 | % |  | 0.9 | % |  | 0.9 | %
Expected volatility | 25.9 | % |  | 25.9 | % |  | 35.7 | %
Expected dividend yield | 1.1 | % |  | 1.1 | % |  | 0.8 | %
SSAR transactions during the year ended December 31, 2016 were as follows:
SSARs outstanding at January 1 | 1,319,911 |
SSARs granted | 298,700 |
SSARs exercised | (129,275 | )
SSARs canceled or forfeited | (30,725 | )
SSARs outstanding at December 31 | 1,458,611 |
SSAR price ranges per share: |  |
Granted | $ 46.58-48.41 |
Exercised | 33.65-55.23 |
Canceled or forfeited | 33.65-55.23 |
Weighted average SSAR exercise prices per share: |  |
Granted | $ | 46.60 |
Exercised | 37.66 |
Canceled or forfeited | 46.25 |
Outstanding at December 31 | 50.07 |
At December 31, 2016, the weighted average remaining contractual life of SSARs outstanding was approximately four years. As of December 31, 2016, the total compensation cost related to unvested SSARs not yet recognized was approximately $4.3 million and the weighted-average period over which it is expected to be recognized is approximately two years. The following table sets forth the exercise price range, number of shares, weighted average exercise price, and remaining contractual lives by groups of similar price as of December 31, 2016:
|  | SSARs Outstanding |  | SSARs Exercisable
Range of Exercise Prices |  | Number of Shares |  | Weighted Average Remaining Contractual Life (Years) |  | Weighted Average Exercise Price |  | Exercisable as of December 31, 2016 |  | Weighted Average Exercise Price
$32.01-$43.88 |  | 310,825 |  |  | 5.0 |  | $ | 43.77 |  |  | 78,550 |  |  | $ | 43.45 |
$46.58-$63.64 |  | 1,147,786 |  |  | 3.7 |  | $ | 51.78 |  |  | 657,651 |  |  | $ | 53.30 |
|  | 1,458,611 |  |  |  |  |  |  | 736,201 |  |  | $ | 52.25 |
The total fair value of SSARs vested during 2016 was approximately $4.4 million. There were 722,410 SSARs that were not vested as of December 31, 2016. The total intrinsic value of outstanding and exercisable SSARs as of December 31, 2016 was $11.5 million and $4.2 million, respectively. The total intrinsic value of SSARs exercised during 2016 was approximately $2.0 million. The excess tax benefit realized for tax deductions in the United States related to the exercise of SSARs and vesting of RSU awards under the 2006 Plan was less than $0.1 million for the year ended December 31, 2016. The excess tax benefit realized for tax deductions in the United States related to the exercise of SSARs and vesting of RSU awards under the 2006 Plan was approximately $0.7 million for the year ended December 31, 2015. The shortfall in tax benefit realized for tax deductions in the United States related to the exercise of SSARs and vesting of performance awards under the 2006 Plan was approximately $0.2 million for the year ended December 31, 2014. The Company realized an insignificant tax benefit from the exercise of SSARs, vesting of performance awards, vesting of RSU awards and exercise of stock options in certain foreign jurisdictions during the years ended December 31, 2016, 2015 and 2014. On January 24, 2017, the Company granted 267,650 performance award shares (subject to the Company achieving future target levels of performance), 284,500 SSARs and 109,803 of restricted stock units under the 2006 Plan. Director Restricted Stock Grants Pursuant to the 2006 Plan, all non-employee directors receive annual restricted stock grants of the Company’s common stock. All restricted stock grants made to the Company’s directors prior to April 24, 2014 were restricted as to transferability for a period of three years. Effective April 24, 2014, the shares granted on that date and all future grants made to the Company’s directors are restricted as to transferability for a period of one year. In the event a director departs from the Company’s Board of Directors, the non-transferability period expires immediately. The plan allows each director to have the option of forfeiting a portion of the shares awarded in lieu of a cash payment contributed to the participant’s tax withholding to satisfy the statutory minimum federal, state and employment taxes that would be payable at the time of grant. The 2016 grant was made on April 28, 2016 and equated to 20,232 shares of common stock, of which 15,395 shares of common stock were issued, after shares were withheld for taxes. The Company recorded stock compensation expense of approximately $1.1 million during 2016 associated with these grants.

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- 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 -SubTopic 40 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=65895303&loc=d3e17540-113929 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=68057994&loc=d3e25284-112666 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB Topic 14) -URI http://asc.fasb.org/extlink&oid=27013229&loc=d3e301413-122809 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5444-113901 + Details
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