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Employee Benefits and Share-Based Compensation | 9 Months Ended
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Sep. 30, 2016
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 the Company's stock plans and subsequent changes, please refer to Note 11, Employee Benefits and Stock-Based Compensation, of its Annual Report on Form 10-K for the year ended December 31, 2015, filed with the SEC on February 26, 2016. Share-based compensation expense The following table sets forth the total share-based compensation expense recognized in the Company's Condensed Consolidated Statements of Operations:
| Three months ended |  | Nine months ended
| September 30, 2016 |  | September 30, 2015 |  | September 30, 2016 |  | September 30, 2015
| (In thousands)
Cost of product and service revenues | $ | 628 |  |  | $ | 581 |  |  | $ | 1,821 |  |  | $ | 1,630 |
Research and development | 825 |  |  | 587 |  |  | 2,267 |  |  | 1,472 |
Selling, general and administrative | 3,224 |  |  | 2,798 |  |  | 9,975 |  |  | 8,165 |
Total share-based compensation expense | $ | 4,677 |  |  | $ | 3,966 |  |  | $ | 14,063 |  |  | $ | 11,267 |
The following weighted average assumptions are used to value stock options and Employee Stock Purchase Plan ("ESPP") shares issued pursuant to the Company's equity incentive plans for the three and nine months ended September 30, 2016 and September 30, 2015:
| Three months ended |  | Nine months ended
| September 30, 2016 |  | September 30, 2015 |  | September 30, 2016 |  | September 30, 2015
Stock Option Plans |  |  |  |  |  |  |
Expected life, years | 4.92 |  |  | 5.04 |  |  | 4.92 |  |  | 5.04 |
Expected volatility, % | 30.0 | % |  | 29.3 | % |  | 31.4 | % |  | 31.1 | %
Risk free interest rate, % | 1.21 | % |  | 1.73 | % |  | 1.34 | % |  | 1.63 | %
Estimated forfeiture rate % | 8.6 | % |  | 2.5 | % |  | 8.6 | % |  | 2.5 | %
Dividend yield, % | — | % |  | — | % |  | — | % |  | — | %
| Three months ended |  | Nine months ended
| September 30, 2016 |  | September 30, 2015 |  | September 30, 2016 |  | September 30, 2015
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, % | 25.8-34.8% |  |  | 25.8-34.4% |  |  | 25.8-34.8% |  |  | 25.8-37.5% |
Risk free interest rate, % | 0.41-0.79% |  |  | 0.12-0.79% |  |  | 0.34-0.79% |  |  | 0.03-0.79% |
Dividend yield, % | — | % |  | — | % |  | — | % |  | — | %
Stock options activity The following table summarizes the share option activity under the Company’s equity incentive plans during the nine months ended September 30, 2016:
| 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, 2015 | 2,688 |  |  | $ | 22.89 |  |  | 6.9 |  |
Granted | 512 |  |  | 29.25 |  |  |  |  |
Exercised | (352 | ) |  | 19.24 |  |  |  |  |
Expired | (5 | ) |  | 28.75 |  |  |  |  |
Forfeited | (100 | ) |  | 29.74 |  |  |  |  |
Outstanding at September 30, 2016 | 2,743 |  |  | $ | 24.30 |  |  | 7.0 |  | $ | 38,482 |
Exercisable at September 30, 2016 | 1,368 |  |  | $ | 19.36 |  |  | 5.2 |  | $ | 25,929 |
Vested and expected to vest at September 30, 2016 and thereafter | 2,597 |  |  | $ | 23.99 |  |  | 6.9 |  | $ | 37,230 |
_________________________________________________ The weighted-average fair value per share of options granted during the three and nine months ended September 30, 2016, was $10.32 and $8.82, respectively, and the weighted-average fair value per share of options granted during the three and nine months ended September 30, 2015 was $10.51 and $10.57, respectively. The intrinsic value of options exercised during the three and nine months ended September 30, 2016 was $2.1 million and $5.0 million, respectively. The intrinsic value of options exercised during the three and nine months ended September 30, 2015 was $3.1 million and $9.7 million, respectively. As of September 30, 2016, total unrecognized compensation cost related to unvested stock options was $10.1 million, which is expected to be recognized over a weighted-average vesting period of 2.8 years. Restricted stock activity The following table summarizes the restricted stock activity under the Company’s equity incentive plans during the nine months ended September 30, 2016:
| 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, 2015 | 417 |  |  | $ | 28.49 |  |  | 1.6 |  |
Granted | 121 |  |  | 29.19 |  |  |  |  |
Vested | (106 | ) |  | 26.80 |  |  |  |  |
Forfeited | (19 | ) |  | 27.85 |  |  |  |  |
Outstanding and unvested at September 30, 2016 | 413 |  |  | $ | 29.16 |  |  | 1.3 |  | $ | 15,812 |
The weighted-average grant date fair value per share of RSU granted during the nine months ended September 30, 2016 and September 30, 2015 was $29.19 and $34.72, respectively. As of September 30, 2016, total unrecognized compensation expense related to RSUs was $9.2 million, which is expected to be recognized over the remaining weighted-average vesting period of 2.5 years.
| Number of Shares |  | Weighted-Average Grant Date Fair Value
| (In thousands, except per share data)
Restricted Stock Awards ("RSAs") |  |  |
Outstanding at December 31, 2015 | 31 |  |  | $ | 35.97 |
Granted | 35 |  |  | 31.59 |
Vested | (31 | ) |  | 36.03 |
Forfeited | — |  |  | — |
Outstanding and unvested at September 30, 2016 | 35 |  |  | $ | 31.56 |
As of September 30, 2016, total unrecognized compensation cost related to RSAs was $0.6 million, which is expected to be recognized over the remaining weighted-average vesting period of 0.66 years. Performance-based restricted stock unit activity The following table summarizes the performance-based restricted stock activity under the Company’s equity incentive plans during the nine months ended September 30, 2016:
| 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, 2015 | 151 |  |  | $ | 23.33 |
Granted | 122 |  |  | 24.66 |
Vested | (52 | ) |  | 23.04 |
Forfeited | — |  |  | — |
Outstanding and unvested at September 30, 2016 | 221 |  |  | $ | 24.13 |
The weighted-average grant date fair value per share of PSUs granted during the nine months ended September 30, 2016 and September 30, 2015 was $24.66 and $29.56, respectively. As of September 30, 2016, total unrecognized compensation cost related to PSUs was $2.1 million, which is expected to be recognized over the remaining weighted-average period of 1.2 years. Employee Stock Purchase Plan activity As of September 30, 2016, the unrecognized compensation cost related to the shares to be purchased under the ESPP was approximately $5.2 million and is expected to be recognized over a weighted-average period of 2.0 years. Summary of shares reserved for future issuance under equity incentive plans The Company had the following ordinary shares reserved for future issuance under its equity incentive plans as of September 30, 2016:
| Number of Shares
| (In thousands)
Share options outstanding | 2,743 |
Non-vested restricted share awards | 668 |
Shares authorized for future issuance | 2,831 |
ESPP shares available for future issuance | 2,831 |
Total shares reserved for future issuance | 9,073 |
Stock Repurchase Program On August 2, 2016, the Board of Directors (the "Board") of (the “Company”) authorized a stock repurchase program providing for the repurchase of up to $50.0 million of the Company’s common stock (the “2016 Repurchase Program”). The 2016 Repurchase Program is in addition to the stock repurchase program approved by the Board on November 4, 2014 (the “2014 Repurchase Program”). As of September 30, 2016, the maximum dollar value of shares that may yet be purchased under the two repurchase programs was $54.9 million. The timing, price and volume of repurchases are to be based on market conditions, relevant securities laws and other factors. The stock repurchases may be made from time to time on the open market, in privately negotiated transactions or pursuant to a Rule 10b-18 plan, subject to the terms and conditions of that certain Credit Agreement, dated as of January 5, 2016, among the Company, the Lenders party thereto, and Wells Fargo Bank, National Association, as administrative agent. The stock repurchase program does not obligate the Company to repurchase any specific number of shares, and the Company may terminate or suspend the repurchase program at any time. During the three and nine months period ended September 30, 2016, the Company did not repurchase any of its outstanding common stock. The Company repurchased approximately 1,424 thousand shares under its stock repurchase programs for $50.02 million during the nine months ended September 30, 2015.

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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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