XML 21 R10.htm IDEA: XBRL DOCUMENT
v3.5.0.2

Stock-Based Compensation | 6 Months Ended
--- | ---
Jun. 30, 2016
Stock-Based Compensation [Abstract] |
Stock-Based Compensation | Note 3 – Stock-Based Compensation 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, phantom stock awards and deferred share units, or any combination thereof, to any director, officer, employee or consultant (including any prosp ective 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 d ate of grant and have a term of 10 years. Restricted shares and restricted stock units granted to employees generally vest over a four-year period from the date of grant, subject to the continued employment of the employee by the Company. Awards under the 2010 Plan to non-employee 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 June 30, 2016, 3.1 million additional common shares were avail able for issuance under the Company’s 2010 Plan. 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 fo r stock-based awards was $1.9 million and $4.0 million for the three and six months ended June 30, 2016, respectively, and $2.1 million and $4.0 million for the three and six months ended June 30, 2015, respectively. The total income tax benefit recognized in the condensed income statement s for stock-based awards was $0.7 million and $1.5 million for the three and six months ended June 30, 2016, respectively, and $0.8 mil lion and $1.6 million for the three and six months ended June 30, 2015, 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 m ethod. 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 performance-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 units, compensation expense is based on the probability that the p erformance 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 esti mate of the awarded shares will vest, an adjustment to stock-based compensation expense is recognized as a change in accounting estimate. As of June 30, 2016, the unrecognized compensation cost and remaining weighted-average amortization related to stock-based awards were as follows:
|  |  |  |  |  | Performance-
|  |  |  |  |  | based
|  |  |  | Restricted |  | Restricted
|  | Stock |  | Stock |  | Stock
(in thousands) |  | Options |  | Units |  | Units(1)
Unrecognized compensation cost |  | $ 3,112 |  |  | $ 11,033 |  |  | $ 5,000
Remaining weighted-average |  |  |  |  |  |  |  |
amortization period | 1.6 years |  |  | 2.6 years |  |  | 2.0 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 fair value per option granted during the six months ended June 30, 2015 was $8.76, respectively. No options were granted during the six months ended June 30, 2016 or the three months ended June 30, 2015. The weighted-average assumptions used to value the options granted during the six months ended June 30, 2015 were as follows (in thousands):
Options granted |  |  | 289
Expected term of options |  |  | 6.4 years
Expected volatility |  |  | 35%
Risk-free interest rate |  |  | 1.886%
Dividend yield |  |  | 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 total cash received by the Company as a result of stock option exercises for the six months ended June 30, 2016 and 2015 was a pproximately $0.8 million and $1.5 million, respectively. The actual tax benefit realized as a result of stock option exercises and the vesting of other share-based awards during the six months ended June 30, 2016 and 2015 was $1.6 million and $1.9 million, respectively. For the six months ended June 30, 2016 and 2015, the total intrinsic value of stock options exercised was $0.3 million and $0.5 million, respectively. The Company awarde d performance-based restricted stock units to employees during the six months ended June 30, 2016 and 2015. 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 margin expansion, and return on in vested 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 stock 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, 2015 |  | 2,580 |  |  | $20.49 |  |  |  |
Exercised |  | (51) |  |  | 16.04 |  |  |  |
Forfeited or expired |  | (314) |  |  | 23.60 |  |  |  |
Outstanding as of June 30, 2016 |  | 2,215 |  |  | $20.16 |  | 4.72 |  | $ 5,308
Exercisable as of June 30, 2016 |  | 1,770 |  |  | $19.67 |  | 3.31 |  | $ 5,022
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 June 30, 2016 for options that had exercise prices that were below the closing price. During the six months ended June 30, 2016, t he Company’s remaining outstanding restricted shares at December 31, 2015 vested and the Company has no restricted sh ares outstanding. Restricted stock units, time-based and performance-based, remain outstanding as detailed below. 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, 2015 |  | 467 |  |  | $21.59
Granted |  | 314 |  |  | 21.47
Vested |  | (171) |  |  | 21.01
Forfeited |  | (20) |  |  | 22.10
Non-vested awards outstanding as of June 30, 2016 |  | 590 |  |  | $21.67
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, 2015 |  |  | 306 |  |  | $19.77
Granted (1) |  |  | 184 |  |  | 21.63
Forfeited or expired |  |  | (108) |  |  | 17.35
Non-vested units outstanding as of June 30, 2016 |  |  | 382 |  |  | $21.35
(1) Represents target number of units that can vest based on the achievement of the performance goals.

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 40 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6418621&loc=d3e17540-113929 Reference 2: 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=51659978&loc=d3e25284-112666 Reference 3: 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 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 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

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