XML 24 R9.htm IDEA: XBRL DOCUMENT
v2.4.1.9

Stock-Based Compensation | 3 Months Ended
--- | ---
Mar. 31, 2015
Stock-Based Compensation [Abstract] |
Stock-Based Compensation | Note 2 – Stock-Based Compensation The Benchmark Electronics, Inc. 2000 Stock Awards Plan (the 2000 Plan) authorized, and the Company’s 2010 Omnibus Incentive Compensation Plan (the 2010 Plan) authorizes, the Company, upon approval of the compensation committee of the Board of Directors, to grant a variety of awards, including stock options, restricted shares, restricted stock units, stock appreciation rights, performance compensation awards, p hantom stock awards and deferred share units, or any combination thereof, to any director, officer, employee or consultant (including any prospective director, officer, employee or consultant) of the Company. Stock options are granted to employees with an exercise price equal to the market price of the Company’s common shares on the date of grant, generally vest over a four-year period from the date of grant and have a term of ten years. Restricted shares and restricted stock units granted to employees gene rally vest over a four-year period from the date of grant, subject to the continued employment of the employee by the Company. The 2000 Plan expired in 2010, and no additional grants can be made under that plan. The 2010 Plan was approved by th e Company’s shareholders in 2010 and amended in 2014. Members of the Board of Directors who are not employees of the Company hold awards under the Benchmark Electronics, Inc. 2002 Stock Option Plan for Non-Employ ee Directors (the 2002 Plan) or the 2010 Plan. Stock opt ions were granted pursuant to the 2002 Plan upon the occurrence of the non-employee director’s election or re-election to the Board of Directors. All awards under the 2002 Plan were fully vested upon the date of grant and have a term of ten years. The 2002 Plan was approved by the Company’s shareholders in 2002 and expired in 2012. No additional grants may be made under the 2002 Plan. Non-employee directors currently receive equity awards under the 2010 Plan. Since 2011, awards under the 2010 Plan to non-em ployee directors have been in the form of restricted stock units, which vest in equal quarterly installments over a one-year period, starting on the grant date. As of March 31, 2015, 3.8 million additional common shares were available for issuance und er the Company’s existing plans. All share-based payments to employees, including grants of employee stock options, are recognized in the financial statements based on their grant date fair values. The total compensation cost recognized for stock-based awards was $1.9 million and $1.4 million for the three months ended March 31, 2015 and 2014, respectively. The total income tax benefit recognized in the condensed consolidated income statement for stock-based awards was $0.6 million and $0.6 million fo r the three months ended March 31, 2015 and 2014, respectively. The compensation expense for stock-based awards includes an estimate for forfeitures and is recognized over the vesting period of the awards using the straight-line method. Cash flows from the tax benefits resulting from tax deductions in excess of the compensation cost recognized for stock-based awards (excess tax benefits) are classified as cash flows from financing activities. Awards of restricted shares, restricted stock units, and perf ormance-based restricted stock units are valued at the closing market price of the Company’s common shares on the date of grant. For performance-based restricted stock unit s, compensation expense is based on the probability that the performance goals will be achieved, which is monitored by management throughout the requisite service period. When it becomes probable, based on the Company’s expectation of performance during the measurement period, that more or less than the previous estimate of the awarded shar es will vest, an adjustment to stock-based compensation expense is recognized as a change in accounting estimate. As of March 31, 2015, the unrecognized compensation cost and remaining weighted-average amortization period related to stock-based award s were as follows:
|  |  |  |  |  |  |  |  | Performance-
|  |  |  |  |  |  |  |  | based
|  |  |  |  |  |  | Restricted |  | Restricted
|  | Stock |  | Restricted |  | Stock |  | Stock
(in thousands) |  | Options |  | Shares |  | Units |  | Units(1)
Unrecognized compensation cost | $ | 6,008 |  | $ | 552 |  | $ | 8,990 |  | $ | 3,289
Remaining weighted-average |  |  |  |  |  |  |  |  |  |  |
amortization period | 2.3 years |  | 0.9 years |  | 3.0 years |  | 2.2 years
(1) Based on the probable achievement of the performance goals identified in each award.
The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model. The weighted-average assumptions used to value the options granted during the three months ended March 31, 2015 and 2014, were as follows:
|  |  | Three Months Ended
|  |  | March 31,
(in thousands) |  |  | 2015 |  | 2014
Options granted |  |  | 289 |  | 313
Expected term of options |  |  | 6.4 years |  | 7.0 years
Expected volatility |  |  | 35% |  | 39%
Risk-free interest rate |  |  | 1.886% |  | 1.998%
Dividend yield |  |  | zero |  | zero
The expected term of the options represents the estimated period of time until exercise and is based on historical experience, giving consideration to the contractual terms, vesting schedules and expectations of future plan participant behavior. Separate groups of plan participants that have similar historical exercise behavior are considered separately for valuation purposes. Expected stock price volatility is based on the historical volatility of the Company’s common shares. The risk-free interest rate i s based on the U.S. Treasury zero-coupon rates in effect at the time of grant with an equivalent remaining term. The dividend yield reflects that the Company has not paid any cash dividends since inception and does not anticipate paying cash dividends in t he foreseeable future. The weighted-average fair value per option granted during the three months ended March 31, 2015 and 2014 was $8.76 and $9.74, respectively. The total cash received by the Company as a result of stock optio n exercises for the three months ended March 31, 2015 and 2014 was app roximately $0.8 million and $5.8 million, respectively. The actual tax benefit realized as a result of stock option exercises and the vesting of other share-based awar ds during the three months ended March 31, 2015 and 2014 was $1.6 million and $1.8 million, respectively. For the three months ended March 31, 2015 and 2014, the total intrinsic value of stock options exercised was $0.3 million and $1.5 million, respectively. The Company awarde d performance-based restricted stock units to employees during the three months ended March 31, 2015 and 2014. The number of performance-based restricted stock units that will ultimately be earned will not be determined until the end of the corresponding performance periods, and may vary from as low as zero to as high as three times the target number depending on the level of achievement of certain performance goals. The level of achievement of these goals is based upon the audited fi nancial results of the Company for the last full calendar year within the performance period. The performance goals consist of certain levels of achievement using the following financial metrics: revenue growth, operating income margin expansion, and retur n on invested capital. If the performance goals are not met based on the Company’s financial results, the applicable performance-based restricted stock units will not vest and will be forfeited. Shares subject to forfeited performance-based restricted stoc k units will be available for issuance under the 2010 Plan. The following table summarizes activities relating to the Company’s stock options:
|  |  |  |  |  |  | Weighted- |  |
|  |  |  |  | Weighted- |  | Average |  |
|  |  |  |  | Average |  | Remaining |  | Aggregate
|  | Number of |  |  | Exercise |  | Contractual |  | Intrinsic
(in thousands, except per share data) |  | Options |  |  | Price |  | Term (Years) |  | Value
Outstanding as of December 31, 2014 |  | 2,437 |  | $ | 20.07 |  |  |  |
Granted |  | 289 |  | $ | 23.14 |  |  |  |
Exercised |  | (46) |  | $ | 17.93 |  |  |  |
Forfeited or expired |  | (12) |  | $ | 22.76 |  |  |  |
Outstanding as of March 31, 2015 |  | 2,668 |  | $ | 20.43 |  | 5.35 | $ | 10,670
Exercisable as of March 31, 2015 |  | 1,859 |  | $ | 20.09 |  | 3.48 | $ | 8,389
The aggregate intrinsic value in the table above is before income taxes and is calculated as the difference between the exercise price of the underlying options and the Company’s closing stock price as of the last business day of the period ended March 31, 2015 for options that had exercise prices that were below the closing price. The following table summarizes activities related to the Company’s restricted shares:
|  |  |  |  | Weighted-
|  |  |  |  | Average
|  | Number of |  |  | Grant Date
(in thousands, except per share data) |  | Shares |  |  | Fair Value
Non-vested shares outstanding as of December 31, 2014 |  | 109 |  | $ | 16.33
Vested |  | (70) |  | $ | 16.85
Non-vested shares outstanding as of March 31, 2015 |  | 39 |  | $ | 15.38
The following table summarizes the activities related to the Company’s ti me-based restricted stock units:
|  |  |  |  | Weighted-
|  |  |  |  | Average
|  | Number of |  |  | Grant Date
(in thousands, except per share data) |  | Units |  |  | Fair Value
Non-vested awards outstanding as of December 31, 2014 |  | 412 |  | $ | 20.33
Granted |  | 168 |  | $ | 23.14
Vested |  | (120) |  | $ | 19.57
Forfeited |  | (3) |  | $ | 20.04
Non-vested awards outstanding as of March 31, 2015 |  | 457 |  | $ | 21.57
The following table summarizes the activi ties related to the Company’s performance-based restricted stock units:
|  |  |  |  | Weighted-
|  |  |  |  | Average
|  | Number of |  |  | Grant Date
(in thousands, except per share data) |  | Units |  |  | Fair Value
Non-vested units outstanding as of December 31, 2014 |  | 274 |  | $ | 18.56
Granted(1) |  | 76 |  | $ | 23.14
Forfeited or expired |  | (53) |  | $ | 18.57
Non-vested units outstanding as of March 31, 2015 |  | 297 |  | $ | 19.74
(1) Represents target number of units that can vest based on the achievement of the performance goals.

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 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 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 40 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6418621&loc=d3e17540-113929 Reference 5: 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 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 14 + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration