XML 74 R24.htm IDEA: XBRL DOCUMENT
v2.4.0.6

Stock-based Compensation and Awards | 12 Months Ended
--- | ---
Dec. 31, 2012
Stock-based Compensation and Awards |
Stock-based Compensation and Awards | 17. Stock-based Compensation and Awards The following table presents the stock-based compensation expense included in our results of operations (in thousands):
|  | Years Ended December 31, |
|  | 2012 |  | 2011 |  | 2010 |
Stock options |  | $ | 2,552 |  | $ | 3,916 |  | $ | 5,273 |
Restricted stock, restricted stock units, cash settled restricted stock units, cash settled performance awards and phantom units |  | 16,583 |  | 14,970 |  | 17,796 |
Employee stock purchase plan |  | 114 |  | 278 |  | 282 |
Total stock-based compensation expense |  | $ | 19,249 |  | $ | 19,164 |  | $ | 23,351 |
Stock Incentive Plan In August 2007, we adopted the 2007 Plan that provides for the granting of stock-based awards in the form of options, restricted stock, restricted stock units, stock appreciation rights and performance awards to our employees and directors. In May 2011, our stockholders approved an amendment to the 2007 Plan increasing the aggregate number of shares of common stock available under the 2007 Plan to 12,500,000. Each option and stock appreciation right granted counts as one share against the aggregate share limit, and each share of restricted stock and each restricted stock unit granted counts as two shares against the aggregate share limit. Awards granted under the 2007 Plan that are subsequently cancelled, terminated or forfeited are available for future grant, and cash settled awards are not counted against the aggregate share limit. Stock Options Under the 2007 Plan, stock options are granted at fair market value at the date of grant, are exercisable in accordance with the vesting schedule established by the compensation committee of our board of directors in its sole discretion and expire no later than seven years after the date of grant. Options generally vest 33 1/3% on each of the first three anniversaries of the grant date. The weighted average grant date fair value for options granted during the years ended December 31, 2012, 2011 and 2010 was $5.74, $5.81 and $8.71, respectively, and was estimated using the Black-Scholes option valuation model with the following weighted average assumptions:
|  | Years Ended December 31, |
|  | 2012 |  | 2011 |  | 2010 |
Expected life in years |  | 4.5 |  | 4.5 |  | 4.5 |
Risk-free interest rate |  | 0.78 | % | 1.23 | % | 2.13 | %
Volatility |  | 47.96 | % | 45.17 | % | 42.94 | %
Dividend yield |  | 0.0 | % | 0.0 | % | 0.0 | %
The risk-free interest rate is based on the U.S. Treasury yield curve in effect on the grant date for a period commensurate with the estimated expected life of the stock options. Expected volatility is based on the historical volatility of our stock over the period commensurate with the expected life of the stock options and other factors. We have not historically paid a dividend and do not expect to pay a dividend during the expected life of the stock options. The following table presents stock option activity for the year ended December 31, 2012 (in thousands, except per share data and remaining life in years):
|  | Stock Options |  | Weighted Average Exercise Price |  | Weighted Average Remaining Life |  | Aggregate Intrinsic Value |
Options outstanding, December 31, 2011 |  | 3,271 |  | $ | 27.39 |  |  |  |  |
Granted |  | 153 |  | 14.36 |  |  |  |  |
Exercised |  | (34 | ) | 16.41 |  |  |  |  |
Cancelled |  | (806 | ) | 26.55 |  |  |  |  |
Options outstanding, December 31, 2012 |  | 2,584 |  | 27.02 |  | 4.6 |  | $ | 10,866 |
Options exercisable, December 31, 2012 |  | 1,828 |  | 31.99 |  | 3.6 |  | 5,425 |
Intrinsic value is the difference between the market value of our stock and the exercise price of each option multiplied by the number of options outstanding for those options where the market value exceeds their exercise price. The total intrinsic value of stock options exercised during 2012, 2011 and 2010 was $0.1 million, $0.2 million and $0.5 million, respectively. As of December 31, 2012, we expect $2.6 million of unrecognized compensation cost related to unvested stock options to be recognized over the weighted-average period of 1.6 years. Restricted Stock, Restricted Stock Units, Cash Settled Restricted Stock Units and Cash Settled Performance Awards For grants of restricted stock and restricted stock units, we recognize compensation expense over the vesting period equal to the fair value of our common stock at the date of grant. We remeasure the fair value of cash settled restricted stock units and cash settled performance awards and record a cumulative adjustment of the expense previously recognized. Our obligation related to the cash settled restricted stock units and cash settled performance awards is reflected as a liability in our consolidated balance sheets. Our grants of restricted stock, restricted stock units, cash settled restricted stock units and cash settled performance awards generally vest 33 1/3% on each of the first three anniversaries of the grant date. The following table presents restricted stock, restricted stock unit, cash settled restricted stock unit and cash settled performance award activity for the year ended December 31, 2012 (in thousands, except per share data):
|  | Shares |  | Weighted Average Grant-Date Fair Value Per Share |
Non-vested awards, December 31, 2011 |  | 1,670 |  | $ | 19.49 |
Granted |  | 1,221 |  | 14.33 |
Vested |  | (772 | ) | 19.09 |
Change in expected vesting of cash settled performance awards |  | 44 |  | 14.36 |
Cancelled |  | (171 | ) | 22.39 |
Non-vested awards, December 31, 2012(1) |  | 1,992 |  | 16.12 |
(1) Non-vested awards as of December 31, 2012 are comprised of 545 thousand cash settled restricted stock units and cash settled performance awards and 1,447 thousand restricted stock shares and stock settled restricted stock units. As of December 31, 2012, $22.6 million of unrecognized compensation cost related to unvested restricted stock, restricted stock units, cash settled restricted stock units and cash settled performance awards is expected to be recognized over the weighted-average period of 1.7 years. Employee Stock Purchase Plan In August 2007, we adopted the Exterran Holdings, Inc. Employee Stock Purchase Plan (“ESPP”), which is intended to provide employees with an opportunity to participate in our long-term performance and success through the purchase of shares of common stock at a price that may be less than fair market value. The ESPP is designed to comply with Section 423 of the Internal Revenue Code of 1986, as amended. Each quarter, an eligible employee may elect to withhold a portion of his or her salary up to the lesser of $25,000 per year or 10% of his or her eligible pay to purchase shares of our common stock at a price equal to 85% to 100% of the fair market value of the stock as of the first trading day of the quarter, the last trading day of the quarter or the lower of the first trading day of the quarter and the last trading day of the quarter, as the compensation committee of our board of directors may determine. The ESPP will terminate on the date that all shares of common stock authorized for sale under the ESPP have been purchased, unless it is extended. In May 2011, our stockholders approved an amendment to the ESPP that increased the aggregate number of shares of common stock available for purchase under the ESPP to 1,000,000. At December 31, 2012, 304,548 shares remained available for purchase under the ESPP. Our ESPP is compensatory and, as a result, we record an expense on our consolidated statements of operations related to the ESPP. Since July 2009, the purchase discount under the ESPP has been 5% of the fair market value of our common stock on the first trading day of the quarter or the last trading day of the quarter, whichever is lower. Directors’ Stock and Deferral Plan On August 20, 2007, we adopted the Exterran Holdings, Inc. Directors’ Stock and Deferral Plan to provide non-employee members of the board of directors with an opportunity to elect to receive our common stock as payment for a portion or all of their retainer and meeting fees. The number of shares paid each quarter is determined by dividing the dollar amount of fees elected to be paid in common stock by the closing sales price per share of the common stock on the last day of the quarter. In addition, directors who elect to receive a portion or all of their fees in the form of common stock may also elect to defer, until a later date, the receipt of a portion or all of their fees to be received in common stock. We have reserved 100,000 shares under the Directors’ Stock and Deferral Plan, and as of December 31, 2012, 59,052 shares remain available to be issued under the plan. Employment Inducement Plan In anticipation of certain key management changes, in November 2011 our board of directors adopted the Exterran Holdings, Inc. 2011 Employment Inducement Long-Term Equity Plan (the “Employment Inducement Plan”), which authorizes the issuance of up to 1,000,000 of non-qualified stock options, restricted stock, restricted stock units, stock appreciation rights and performance awards to certain newly-hired employees of us or our affiliates. The Employment Inducement Plan is only available to grant awards to an individual, as a material inducement to such individual to enter into employment with us, who (i) has not previously been an employee of us or our affiliates or (ii) is rehired following a bona fide period of non-employment with us and our affiliates. Awards granted under the Employment Inducement Plan that are subsequently cancelled, terminated or forfeited are available for future grant. As of December 31, 2012, 539,982 shares remain available to be issued under the Employment Inducement Plan. We do not intend to issue any additional equity under the Employment Inducement Plan, other than as necessary to materially induce a high-level executive to enter into employment with us. Partnership Long-Term Incentive Plan The Partnership has a long-term incentive plan (the “Plan”) that was adopted by Exterran GP LLC, the general partner of the Partnership’s general partner, in October 2006 for employees, directors and consultants of the Partnership, us and our respective affiliates. An aggregate of 1,035,378 common units, common unit options, restricted units and phantom units is available under the Plan. The Plan is administered by the board of directors of Exterran GP LLC or a committee thereof (the “Plan Administrator”). Phantom units are notional units that entitle the grantee to receive a common unit upon the vesting of the phantom unit or, at the discretion of the Plan Administrator, cash equal to the fair value of a common unit. Partnership Phantom Units During the year ended December 31, 2012, the Partnership granted 29,717 phantom units to officers and directors of Exterran GP LLC and certain of our employees, which vest 33 1/3% on each of the first three anniversaries of the grant date. The following table presents phantom unit activity for the year ended December 31, 2012:
|  | Phantom Units |  | Weighted Average Grant-Date Fair Value per Unit |
Phantom units outstanding, December 31, 2011 |  | 75,267 |  | $ | 21.45 |
Granted |  | 29,717 |  | 22.62 |
Vested |  | (40,329 | ) | 18.73 |
Cancelled |  | (771 | ) | 28.50 |
Phantom units outstanding, December 31, 2012 |  | 63,884 |  | 23.62 |
As of December 31, 2012, $1.0 million of unrecognized compensation cost related to unvested phantom units is expected to be recognized over the weighted-average period of 1.7 years.

X
- Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsSharebasedPaymentsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

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 SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 14 Reference 2: 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 3: 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=6406099&loc=d3e25284-112666 Reference 4: 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 5: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Statement of Position (SOP) -Number 93-6 -Paragraph 53 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 6: 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=6418621&loc=d3e17540-113929 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 123R -Paragraph 64, 65, A240 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 8: 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