XML 87 R14.htm IDEA: XBRL DOCUMENT
v3.3.1.900

Share-Based Compensation | 12 Months Ended
--- | ---
Dec. 31, 2015
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] |
Share-Based Compensation | 6. Share-Based Compensation Share-Based Incentive Compensation Plans Under the Company’s 2009 Omnibus Incentive Compensation Plan (Amended and Restated Effective as of June 3, 2015) (“Restated 2009 Plan”), we are authorized to issue up to 7,450,000 shares of common stock, of which no more than 5,400,000 shares of common stock may be issued in the form of restricted or unrestricted shares or other share-based awards. At December 31, 2015, 1,760,495 shares of common stock were available for grant under our Restated 2009 Plan, all of which may be granted as share-based awards. Our officers, employees, non-employee directors and certain individual service providers are eligible to participate in the Company’s equity compensation plans, subject to the discretion of the administrator of the plans. During the year ended December 31, 2015, we awarded 307,965 restricted shares, stock options exercisable for up to 185,421 shares, 81,016 performance stock units, and 109,665 restricted stock units. These awards are recorded as equity on the Consolidated Balance Sheet. During the year ended December 31, 2015, stock options exercisable for up to 270,506 shares, 113,141 performance stock units and 20,827 restricted shares were forfeited prior to the completion of the vesting requirements. We have also awarded employees cash-settled stock appreciation rights, cash settled units, and cash-settled performance units. The cash-settled performance units are subject to market conditions based on the adjusted total shareholder return of the Company as compared to the adjusted total shareholder return of the adjusted S&P 500 for the three year period ending March 31, 2017. During the year ended December 31, 2015, we awarded a total of 5,554 cash-settled stock appreciation rights to employees in certain foreign countries. As of December 31, 2015, there were 93,559 cash-settled stock appreciation rights, 17,896 cash-settled units, and 49,472 cash-settled performance units outstanding and there was $1.8 million of unrecognized compensation cost related to these unvested cash-settled awards. Share-Based Compensation Expense The table below reflects the total share-based compensation expense recognized in our Consolidated Statements of Comprehensive Income (Loss) for the years ended December 31, 2015, 2014 and 2013.
|  | 2015 |  |  | 2014 |  |  | 2013 |
|  |  |  |  |  | Restricted |  |  |  |  |  |  | Restricted |  |  |  |  |  |  | Restricted |
Income Statement Classification |  | Options (1) |  |  | Shares (2) |  |  | Options (1) |  |  | Shares (2) |  |  | Options (1) |  |  | Shares (2) |
Direct cost of revenues |  | $ | 3,736 |  |  | $ | 6,532 |  |  | $ | 5,404 |  |  | $ | 8,951 |  |  | $ | 6,807 |  |  | $ | 9,181 |
Selling, general and administrative expense |  |  | 1,482 |  |  |  | 7,469 |  |  |  | 1,783 |  |  |  | 8,508 |  |  |  | 1,849 |  |  |  | 10,053 |
Special charges (3) |  |  | — |  |  |  | — |  |  |  | (126 | ) |  |  | (990 | ) |  |  | 1,482 |  |  |  | 5,938 |
Share-based compensation expense before income taxes |  |  | 5,218 |  |  |  | 14,001 |  |  |  | 7,061 |  |  |  | 16,469 |  |  |  | 10,138 |  |  |  | 25,172 |
Income tax benefit |  |  | 1,353 |  |  |  | 5,138 |  |  |  | 2,698 |  |  |  | 6,490 |  |  |  | 4,101 |  |  |  | 9,094 |
Share-based compensation, net of income taxes |  | $ | 3,865 |  |  | $ | 8,863 |  |  | $ | 4,363 |  |  | $ | 9,979 |  |  | $ | 6,037 |  |  | $ | 16,078 |
(1) | Includes options and cash-settled stock appreciation rights.
(2) | Includes restricted share awards, performance and market condition restricted stock units, and cash-settled restricted stock units.
(3) | Special charges of $0.2 million equity award expense acceleration and $0.1 million option expense acceleration are net of forfeitures of $1.2 million and $0.2 million, respectively, for the year ended December 31, 2014. (See “Note 4. Special Charges” to the Consolidated Financial Statements for information related to the special charges).
Stock Options We use the Black-Scholes option-pricing model to value our option grants using the assumptions in the following table:
|  | Year Ended December 31, |
Assumptions |  | 2015 |  |  | 2014 |  |  | 2013 |
Risk-free interest rate |  | 1.07% -1.70% |  |  | 0.99% - 1.94% |  |  | 0.77% - 1.71% |
Dividend yield |  |  | 0% |  |  |  | 0% |  |  |  | 0% |
Expected term |  | 3 - 5 years |  |  | 3 - 6 years |  |  | 5 - 6 years |
Stock price volatility |  | 31.03% to 40.36% |  |  | 31.05% - 37.60% |  |  | 37.30% - 38.27% |
The following table summarizes the option activity under our Equity Compensation Plans as of and for the year ended December 31, 2015. The aggregate intrinsic value in the table below represents the total pre-tax intrinsic value (the difference between the closing price of our common stock on the last trading day of 2015 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on December 31, 2015. The aggregate intrinsic value changes based on fluctuations in the fair market value per share of our common stock.
|  |  |  |  |  |  |  |  |  | Weighted- |  |  |  |  |
|  |  |  |  |  |  |  |  |  | Average |  |  |  |  |
|  |  |  |  |  | Weighted- |  |  | Remaining |  |  |  |  |
|  |  |  |  |  | Average |  |  | Contractual |  |  | Aggregate |
|  |  |  |  |  | Exercise |  |  | Term |  |  | Intrinsic |
|  | Shares |  |  | Price |  |  | (In Years) |  |  | Value |
Options outstanding at December 31, 2014 |  |  | 4,340 |  |  | $ | 38.03 |  |  |  |  |  |  |  |  |
Options granted |  |  | 185 |  |  | $ | 36.82 |  |  |  |  |  |  |  |  |
Options exercised |  |  | (763 | ) |  | $ | 29.92 |  |  |  |  |  |  |  |  |
Options forfeited |  |  | (270 | ) |  | $ | 48.90 |  |  |  |  |  |  |  |  |
Options outstanding at December 31, 2015 |  |  | 3,492 |  |  | $ | 38.89 |  |  |  | 5.3 |  |  | $ | 4,745 |
Options exercisable at December 31, 2015 |  |  | 2,110 |  |  | $ | 41.37 |  |  |  | 4.0 |  |  | $ | 2,879 |
Cash received from option exercises for the years ended December 31, 2015, 2014 and 2013 was $21.1 million, $11.3 million and $35.7 million, respectively. The actual tax benefit realized from stock options exercised totaled $5.5 million, $1.9 million and $5.5 million for the years ended December 31, 2015, 2014 and 2013, respectively. The intrinsic value of stock options exercised is the amount by which the market value of our common stock on the exercise date exceeds the exercise price. The total intrinsic value of stock options exercised for the years ended December 31, 2015, 2014 and 2013 was $8.1 million, $4.4 million and $15.1 million, respectively. The following is a summary of the status of stock options outstanding and exercisable at December 31, 2015:
|  | Options Outstanding |  |  | Options Exercisable |
|  |  |  |  |  |  |  |  |  | Weighted- |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  | Average |  |  |  |  |  |  |  |  |
|  |  |  |  |  | Weighted- |  |  | Remaining |  |  |  |  |  |  | Weighted- |
|  |  |  |  |  | Average |  |  | Contractual |  |  |  |  |  |  | Average |
|  |  |  |  |  | Exercise |  |  | Term |  |  |  |  |  |  | Exercise |
Exercise Price Range |  | Shares |  |  | Price |  |  | (In Years) |  |  | Shares |  |  | Price |
$25.73-$31.13 |  |  | 729 |  |  | $ | 28.81 |  |  |  | 4.6 |  |  |  | 393 |  |  | $ | 27.76 |
$31.54-$36.29 |  |  | 717 |  |  | $ | 34.46 |  |  |  | 6.2 |  |  |  | 336 |  |  | $ | 34.80 |
$36.43-$37.95 |  |  | 716 |  |  | $ | 37.06 |  |  |  | 7.2 |  |  |  | 262 |  |  | $ | 37.40 |
$38.03-$43.13 |  |  | 710 |  |  | $ | 40.57 |  |  |  | 5.3 |  |  |  | 501 |  |  | $ | 40.34 |
$43.27-$70.55 |  |  | 620 |  |  | $ | 56.07 |  |  |  | 2.8 |  |  |  | 618 |  |  | $ | 56.11 |
|  |  | 3,492 |  |  |  |  |  |  |  |  |  |  |  | 2,110 |  |  |  |  |
As of December 31, 2015, there was $7.4 million of unrecognized compensation cost related to unvested stock options. That cost is expected to be recognized ratably over a weighted-average period of 2.2 years. Restricted Share Awards A summary of our unvested restricted share activity during the year ended December 31, 2015 is presented below. The fair value of unvested restricted share awards is determined based on the closing market price per share of our common stock on the grant date.
|  |  |  |  |  | Weighted- |
|  |  |  |  |  | Average Grant- |
|  |  |  |  |  | Date Fair |
|  | Shares |  |  | Value |
Unvested restricted share awards outstanding at December 31, 2014 |  |  | 1,032 |  |  | $ | 35.96 |
Restricted share awards granted |  |  | 308 |  |  | $ | 38.91 |
Restricted share awards vested |  |  | (384 | ) |  | $ | 35.77 |
Restricted share awards forfeited |  |  | (173 | ) |  | $ | 39.08 |
Unvested restricted share awards outstanding at December 31, 2015 |  |  | 783 |  |  | $ | 36.55 |
As of December 31, 2015, there was $17.6 million of unrecognized compensation cost related to unvested restricted share awards. That cost is expected to be recognized ratably over a weighted-average period of 3.97 years. The total fair value of restricted share awards that vested during the year was $14.6 million, $20.5 million, and $17.9 million for the years ended December 31, 2015, 2014 and 2013, respectively. Restricted Stock Units A summary of our Restricted Stock Units activity during the year ended December 31, 2015 is presented below. The aggregate intrinsic value in the table below represents the total pre-tax intrinsic value based on the closing price of our common stock on the last trading day of 2015. The fair value of Restricted Stock Units is determined based on the closing market price per share of our common stock on the grant date.
|  |  |  |  |  | Weighted- |  |  |  |  |
|  |  |  |  |  | Average Grant- |  |  |  |  |
|  |  |  |  |  | Date Fair |  |  | Intrinsic |
|  | Shares |  |  | Value |  |  | Value |
Restricted stock units outstanding at December 31, 2014 |  |  | 776 |  |  | $ | 37.00 |  |  |  |  |
Restricted stock units granted |  |  | 193 |  |  | $ | 39.17 |  |  |  |  |
Restricted stock units released |  |  | (87 | ) |  | $ | 33.37 |  |  |  |  |
Restricted stock units forfeited |  |  | (113 | ) |  | $ | 37.55 |  |  |  |  |
Restricted stock units outstanding at December 31, 2015 |  |  | 769 |  |  | $ | 37.87 |  |  | $ | 26,547 |
The intrinsic value of Restricted Stock Units released reflects the market value of our common stock on the date of release. The total intrinsic value of Restricted Stock Units released was $3.1 million, $1.7 million and $4.7 million for the years ended December 31, 2015, 2014 and 2013, respectively. As of December 31, 2015, there was $2.8 million of unrecognized compensation cost related to unvested Restricted Stock Units. That cost is expected to be recognized ratably over a weighted-average period of 1.5 years. The total fair value of Restricted Stock Units that vested during the years ended December 31, 2015, 2014 and 2013 was $7.5 million, $2.7 million, and $4.6 million, respectively. The table below reflects the weighted-average grant date fair value per share of stock options, restricted share awards and restricted stock units awarded during the years ended December 31, 2015, 2014 and 2013.
|  | Year Ended December 31, |
|  | 2015 |  |  | 2014 |  |  | 2013 |
Weighted average fair value of grants |  |  |  |  |  |  |  |  |  |  |  |
Stock options |  | $ | 10.85 |  |  | $ | 10.77 |  |  | $ | 13.15 |
Restricted share awards and restricted stock units |  | $ | 39.01 |  |  | $ | 32.87 |  |  | $ | 36.31 |

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

X
- Definition Tabular disclosure of components of a stock option or other award plan under which equity-based compensation is awarded to employees, typically comprised of the amount of unearned compensation (deferred compensation cost), compensation expense, and changes in the quantity and fair value of the shares (or other type of equity) granted, exercised, forfeited, and issued and outstanding pertaining to that plan. Disclosure may also include nature and general terms of such arrangements that existed during the period and potential effects of those arrangements on shareholders, effect of compensation cost arising from equity-based payment arrangements on the income statement, method of estimating the fair value of the goods or services received, or the fair value of the equity instruments granted, during the period, cash flow effects resulting from equity-based payment arrangements and, for registrants that accelerate vesting of out of the money share options, reasons for the decision to accelerate. + References Reference 1: 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 2: 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 + Details
Name: | us-gaap_DisclosureOfShareBasedCompensationArrangementsByShareBasedPaymentAwardTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration