XML 19 R9.htm IDEA: XBRL DOCUMENT
v3.7.0.1

Stock Compensation Plans | 3 Months Ended
--- | ---
Mar. 31, 2017
Share-based Compensation [Abstract] |
Stock Compensation Plans | STOCK COMPENSATION PLANS The Company recorded stock compensation expense as follows for the three months ended March 31, 2017 and 2016 (in millions):
|  | Three Months Ended March 31,
|  | 2017 |  | 2016
Cost of goods sold |  | $ | 0.6 |  |  | $ | 0.4 |
Selling, general and administrative expenses |  | 11.4 |  |  | 5.1 |
Total stock compensation expense |  | $ | 12.0 |  |  | $ | 5.5 |
Stock Incentive Plan Under the Company’s 2006 Long Term Incentive Plan (the “2006 Plan”), up to 10,000,000 shares of AGCO common stock may be issued. As of March 31, 2017, of the 10,000,000 shares reserved for issuance under the 2006 Plan, approximately 2,974,390 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, 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 weighted average grant-date fair value of performance awards granted under the 2006 Plan during the three months ended March 31, 2017 and 2016 was $61.83 and $47.94, respectively. During the three months ended March 31, 2017, the Company granted 531,596 performance awards related to varying performance periods. The awards granted assume the maximum target level of performance is achieved, as applicable. The compensation expense associated with all awards granted under the 2006 Plan 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. Performance award transactions during the three months ended March 31, 2017 were as follows and are presented as if the Company were to achieve its maximum levels of performance under the plan awards:
Shares awarded but not earned at January 1 | 1,982,120 |
Shares awarded | 531,596 |
Shares forfeited or unearned | (177,584 | )
Shares earned | — |
Shares awarded but not earned at March 31 | 2,336,132 |
During the three months ended March 31, 2017, the Company recorded approximately $4.8 million of accelerated stock compensation expense associated with a waived stock award declined by the Company’s CEO. As of March 31, 2017, 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 $51.5 million, and the weighted average period over which it is expected to be recognized is approximately two years. The compensation cost not yet recognized could be higher or lower based on actual achieved levels of performance. Restricted Stock Unit Awards During the three months ended March 31, 2017, the Company granted 108,588 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. The compensation expense associated with these awards is 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 three months ended March 31, 2017 and 2016 was $61.83 and $45.05, respectively. RSU transactions during the three months ended March 31, 2017 were as follows:
Shares awarded but not vested at January 1 | 222,730 |
Shares awarded | 108,588 |
Shares forfeited | (1,318 | )
Shares vested | (86,783 | )
Shares awarded but not vested at March 31 | 243,217 |
As of March 31, 2017, the total compensation cost related to the unvested RSUs not yet recognized was approximately $11.6 million, and the weighted average period over which it is expected to be recognized is approximately two years. Stock-Settled Appreciation Rights Compensation expense associated with the stock-settled appreciation rights (“SSAR”) awards is amortized ratably over the requisite service period for the awards that are expected to vest. The Company estimated the fair value of the grants using the Black-Scholes option pricing model. SSAR transactions during the three months ended March 31, 2017 were as follows:
SSARs outstanding at January 1 |  | 1,458,611 |
SSARs granted |  | 284,500 |
SSARs exercised |  | (223,019 | )
SSARs canceled or forfeited |  | (3,000 | )
SSARs outstanding at March 31 |  | 1,517,092 |
As of March 31, 2017, the total compensation cost related to the unvested SSARs not yet recognized was approximately $6.7 million, and the weighted average period over which it is expected to be recognized is approximately three years. Director Restricted Stock Grants The 2006 Plan provides for annual restricted stock grants of the Company’s common stock to all non-employee directors. The 2017 grant was made on April 27, 2017 and equated to 14,968 shares of common stock, of which 12,066 shares of common stock were issued after shares were withheld for taxes. The Company recorded stock compensation expense of approximately $1.0 million during the three months ended June 30, 2017 associated with these grants.

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 -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
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_ShareBasedCompensationAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration