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Employee Benefits and Share-Based Compensation | 6 Months Ended
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Jun. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
Employee Benefits and Share-Based Compensation | Employee Benefits and Share-Based Compensation Stock Based plans For a detailed explanation of our stock plan and subsequent changes please refer to Note 16, Employee Benefits and Stock-Based Compensation, of our Annual Report on Form 10-K for the year ended December 31, 2014. Share-based compensation expense The following table sets forth the total share-based compensation expense recognized in our Condensed Consolidated Statements of Operations:
| Three Months Ended |  | Six Months Ended
| June 30, 2015 |  | June 30, 2014 |  | June 30, 2015 |  | June 30, 2014
| (In thousands)
Cost of product and service revenues | $ | 532 |  |  | $ | 264 |  |  | $ | 1,049 |  |  | $ | 532 |
Research and development | 451 |  |  | 380 |  |  | 885 |  |  | 749 |
Selling, general and administrative | 2,653 |  |  | 2,076 |  |  | 5,367 |  |  | 4,168 |
Total share-based compensation expense | $ | 3,636 |  |  | $ | 2,720 |  |  | $ | 7,301 |  |  | $ | 5,449 |
The following weighted average assumptions are used to value share options and Employee Stock Purchase Plan ("ESPP") shares issued pursuant to our equity incentive plans for the three and six months ended June 30, 2015 and June 30, 2014:
| Three Months Ended |  | Six Months Ended
| June 30, 2015 |  | June 30, 2014 |  | June 30, 2015 |  | June 30, 2014
| (In thousands)
Stock Option Plans |  |  |  |  |  |  |
Expected life, years | 5.04 |  |  | 4.77 |  |  | 5.04 |  |  | 4.79 |
Expected volatility, % | 29.3 | % |  | 35.9 | % |  | 32.2 | % |  | 35.4 | %
Risk free interest rate, % | 1.51 | % |  | 1.62 | % |  | 1.58 | % |  | 1.52 | %
Estimated forfeiture rate % | 2.5 | % |  | 2.5 | % |  | 2.5 | % |  | 2.5 | %
Dividend yield, % | — | % |  | — | % |  | — | % |  | — | %
| Three Months Ended |  | Six Months Ended
| June 30, 2015 |  | June 30, 2014 |  | June 30, 2015 |  | June 30, 2014
| (In thousands)
Employee Stock Purchase Plan |  |  |  |  |  |  |
Expected life, years | 0.5-2.0 |  |  | 0.5-2.0 |  |  | 0.5-2.0 |  |  | 0.5-2.0 |
Expected volatility, % | 28.52%-37.53% |  |  | 29.56%-39.84% |  |  | 23.75%-35.67% |  |  | 29.56%-39.84% |
Risk free interest rate, % | 0.03%-0.72% |  |  | 0.03%-0.53% |  |  | 0.03%-0.72% |  |  | 0.03%-0.53% |
Estimated forfeiture rate % | — | % |  | — | % |  | — | % |  | — | %
Dividend yield, % | — | % |  | — | % |  | — | % |  | — | %
Stock option and restricted stock activity Stock options activity The following table summarizes the share option activity under the Company’s equity incentive plans during the six months ended June 30, 2015:
| Number of Shares |  | Weighted-Average Exercise Price |  | Weighted-Average Remaining Years |  | Aggregate Intrinsic Value(1)
| (In thousands, except per share data)
Stock Options |  |  |  |  |  |  |
Outstanding at December 31, 2014 | 2,672 |  |  | $ | 19.02 |  |  | 6.5 |  |
Granted | 200 |  |  | 34.10 |  |  |  |  |
Exercised | (340 | ) |  | 15.54 |  |  |  |  |
Expired | (2 | ) |  | 15.57 |  |  |  |  |
Forfeited | (67 | ) |  | 23.30 |  |  |  |  |
Outstanding at June 30, 2015 | 2,463 |  |  | $ | 20.60 |  |  | 6.5 |  | $ | 42,138 |
Exercisable at June 30, 2015 | 1,425 |  |  | $ | 16.46 |  |  | 4.9 |  | $ | 30,277 |
Vested and expected to vest at June 30, 2015 | 2,435 |  |  | $ | 20.50 |  |  | 6.4 |  | $ | 41,919 |
_________________________________________________
(1) | Intrinsic value is calculated as the difference between the market value or closing price of our common stock as of the last trading day of the year as reported by the NASDAQ Global Select Market, and the exercise price of the option.
The weighted-average fair value per share of options granted during the three and six months ended June 30, 2015, was $10.09 and $10.61, respectively and the weighted-average fair value per share of options granted during the three and six months ended June 30, 2014 was $9.00 and $8.29, respectively. The intrinsic value of options exercised during the three and six months ended June 30, 2015 was $4.3 million and $6.7 million, respectively. The intrinsic value of options exercised during the three and six months ended June 30, 2014 was $5.3 million and $7.9 million, respectively. As of June 30, 2015, total unrecognized compensation cost related to unvested stock options was $8.8 million, which is expected to be recognized over a weighted-average vesting period of 2.7 years. Restricted stock activity Restricted stock activity under the Company’s equity incentive plans in the six months ended June 30, 2015 is as follows:
| Number of Shares |  | Weighted-Average Grant Date Fair Value |  | Weighted-Average Remaining Years |  | Aggregate Intrinsic Value
| (In thousands, except per share data)
Restricted Stock Units (RSUs) |  |  |  |  |  |  |
Outstanding at December 31, 2014 | 399 |  |  | $ | 24.00 |  |  | 1.5 |  |
Granted | 65 |  |  | 34.19 |  |  |  |  |
Vested | (77 | ) |  | 21.57 |  |  |  |  |
Forfeited | (23 | ) |  | 22.35 |  |  |  |  |
Outstanding and unvested at June 30, 2015 | 364 |  |  | $ | 26.45 |  |  | 1.3 |  | $ | 13,714 |
Expected to vest at June 30, 2015 | 353 |  |  |  |  | 1.3 |  | $ | 13,329 |
The weighted-average grant date fair value per share of RSUs granted during the six months ended June 30, 2015 was $34.19, respectively. The weighted-average grant date fair value per share of RSUs granted during the six months ended June 30, 2014 was $26.46, respectively. As of June 30, 2015, total unrecognized compensation expense related to RSUs was $8.4 million, which is expected to be recognized over the remaining weighted-average vesting period of 2.4 years.
| Number of Shares |  | Weighted-Average Grant Date Fair Value
| (In thousands, except per share data)
Restricted Stock Awards (RSAs) |  |  |
Outstanding at December 31, 2014 | 36 |  |  | $ | 26.47 |
Granted | 37 |  |  | 36.05 |
Vested | (41 | ) |  | 26.47 |
Forfeited | (1 | ) |  | 27.65 |
Outstanding and unvested at June 30, 2015 | 31 |  |  | $ | 35.95 |
The weighted-average grant date fair value per share of RSAs granted during the six months ended June 30, 2015 was and $36.05. As of June 30, 2015, total unrecognized compensation cost related to RSAs was $1.0 million, which is expected to be recognized over the remaining weighted-average vesting period of 0.9 years. Performance-based restricted stock units activity Performance-based restricted stock activity under the Company’s equity incentive plans in the six months ended June 30, 2015 is as follows:
| Number of Shares |  | Weighted-Average Grant Date Fair Value Per Unit
| (In thousands, except per share data)
Performance-based Restricted Stock Units (PSUs) |  |  |
Outstanding at December 31, 2014 | 233 |  |  | $ | 17.96 |
Granted | 60 |  |  | 29.56 |
Vested | (70 | ) |  | 18.91 |
Forfeited | (27 | ) |  | 14.69 |
Outstanding and unvested at June 30, 2015 | 196 |  |  | $ | 21.63 |
The weighted-average grant date fair value per share of PSUs granted during the six months ended June 30, 2015 and June 30, 2014 was $29.56 and $16.49, respectively. The total fair value of PSUs that vested during the six months ended June 30, 2015 and June 30, 2014 was $2.6 million and $2.1 million, respectively. As of June 30, 2015, total unrecognized compensation cost related to PSUs was approximately $2.5 million, which is expected to be recognized over the remaining weighted-average period of 1.4 years. Employee Stock Purchase Plan (ESPP) activity The unrecognized compensation cost related to the shares to be purchased under our ESPP was approximately $2.2 million as of June 30, 2015, and is expected to be recognized over a weighted-average period of 0.1 years. Summary of shares reserved for future issuance under equity incentive plans We had the following ordinary shares reserved for future issuance under its equity incentive plans as of June 30, 2015:
| Number of Shares
| (In thousands)
Share options outstanding | 2,463 |
Restricted share awards outstanding | 559 |
Shares authorized for future issuance | 4,637 |
ESPP shares available for future issuance | 3,393 |
Total shares reserved for future issuance as of June 30, 2015 | 11,052 |

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- Definition The entire disclosure for accounts comprising shareholders' equity, comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income, and compensation-related costs for equity-based compensation. Includes, but is not limited to, disclosure of policies, compensation plan details, equity-based arrangements to obtain goods and services, deferred compensation arrangements, and employee stock purchase plan details. + References No definition available. + Details
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