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Share-Based Compensation | 12 Months Ended
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Dec. 31, 2013
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] |
Share-Based Compensation | Note H – Share-Based Compensation The 1999 Stock Option Plan The 1999 Stock Option Plan (the Plan) permits the grant of 300,000 options to buy common shares of the Company to certain employees at not less than fair market value of the shares on the date of grant. At December 31, 2013 there were no shares remaining to be issued under the Plan. Options issued to date under the Plan vest 50% after one year following the date of the grant, 75% after two years, and 100% after three years and expire from five to ten years from the date of grant. Shares issued as a result of stock option exercises will be funded with the issuance of new shares. The Company has elected to use the simplified method of calculating the expected term of the stock options and historical volatility to compute fair value under the Black-Scholes option-pricing model. The risk-free rate for periods within the contractual life of the option is based on the U.S. zero coupon Treasury yield in effect at the time of grant. Forfeitures have been estimated to be zero. There were no shares granted for the years ended December 31, 2013 and 2012. Activity in the Company’s 1999 Stock Option Plan for the year ended December 31, 2013 was as follows:
|  | Number of Shares |  |  | Weighted Average Exercise Price per Share |  |  | Weighted Average Remaining Contractual Term (Years) |  |  | Aggregate Intrinsic Value |
Outstanding at January 1, 2013 |  |  | 32,150 |  |  | $ | 40.93 |  |  |  |  |  |  |  |  |
Exercised |  |  | (19,150 | ) |  | $ | 41.59 |  |  |  |  |  |  |  |  |
Outstanding (exercisable and vested) at December 31, 2013 |  |  | 13,000 |  |  | $ | 39.95 |  |  |  | 3.6 |  |  | $ | 432 |
Exercisable at December 31, 2013 |  |  | 13,000 |  |  | $ | 39.95 |  |  |  | 3.6 |  |  | $ | 432 |
There were 19,150 stock options exercised during the year ended December 31, 2013, 17,757 in 2012 and 22,025 during the year ended December 31, 2011. The total intrinsic value of stock options exercised during the years ended December 31, 2013, 2012 and 2011 was $.6 million each year. Cash received for the exercise of stock options during 2013 and 2012 was $.8 million and $.4 million, respectively. The Company recorded compensation expense related to the stock options currently vesting of $0 for the year ended December 31, 2013, less than $.1 million for the year ended December 31, 2012 and $.1 million for the year ended December 31, 2011. All compensation cost has been recognized as of December 31, 2013. The excess tax benefits from share based awards for the years ended December 31, 2013, 2012 and 2011 were $.2 million, $.1 million and $.1 million respectively, as reported on the Consolidated Statements of Cash Flows in financing activities, and represents the reduction in income taxes otherwise payable during the period, attributable to the actual gross tax benefits in excess of the expected tax benefits for options exercised in the current period. Long Term Incentive Plan of 2008 Under the Preformed Line Products Company Long Term Incentive Plan of 2008 (the “LTIP”), certain employees, officers, and directors are eligible to receive awards of options and restricted shares. The purpose of this LTIP is to give the Company a competitive advantage in attracting, retaining and motivating officers, employees and directors and to provide an incentive to those individuals to increase shareholder value through long-term incentives directly linked to the Company’s performance. The total number of Company common shares reserved for awards under the LTIP is 900,000. Of the 900,000 common shares, 800,000 common shares have been reserved for restricted share awards and 100,000 common shares have been reserved for share options. The LTIP expires on April 17, 2018. Restricted Share Awards For all of the participants except the CEO, a portion of the restricted share award is subject to time-based cliff vesting and a portion is subject to vesting based upon the Company’s performance over a three year period. All of the CEO’s restricted shares are subject to vesting based upon the Company’s performance over a three year period. The restricted shares are offered at no cost to the employees; however, the participant must remain employed with the Company until the restrictions lapse. The fair value of restricted share awards is based on the market price of a common share on the grant date. The Company currently estimates that no awards will be forfeited. Dividends declared are accrued in cash dividends. A summary of the restricted share awards for the year ended December 31, 2013 is as follows:
|  | Restricted Share Awards |
|  | Performance and Service Required |  |  | Service Required |  |  | Total Restricted Awards |  |  | Weighted-Average Grant-Date Fair Value |
Nonvested as of January 1, 2013 |  |  | 103,221 |  |  |  | 11,363 |  |  |  | 114,584 |  |  | $ | 48.33 |
Granted |  |  | 47,832 |  |  |  | 5,614 |  |  |  | 53,446 |  |  |  | 70.27 |
Vested |  |  | (61,594 | ) |  |  | (6,775 | ) |  |  | (68,369 | ) |  |  | 39.92 |
Nonvested as of December 31, 2013 |  |  | 89,459 |  |  |  | 10,202 |  |  |  | 99,661 |  |  | $ | 65.86 |
For time-based restricted shares, the Company recognizes stock-based compensation expense on a straight-line basis over the requisite service period of the award in General and administrative expense in the accompanying Statement of Consolidated Income. Compensation expense related to the time-based restricted shares for the years ended December 31, 2013, 2012 and 2011 was $.3 million for each year. As of December 31, 2013, there was $.4 million of total unrecognized compensation cost related to time-based restricted share awards that is expected to be recognized over the weighted-average remaining period of approximately 1.7 years. For the performance-based awards, the number of restricted shares in which the participants will vest depends on the Company’s level of performance measured by growth in pretax income and sales over a requisite performance period. Depending on the extent to which the performance criterions are probable of being satisfied under the LTIP, the participants are eligible to earn common shares over the vesting period. Performance-based compensation expense for the years ended December 31, 2013, 2012 and 2011 was $2.7 million, $2.5 million and $2.4 million. As of December 31, 2013, the remaining performance-based restricted share awards compensation expense of $3.3 million is expected to be recognized over a period of approximately 1.7 years. The excess tax benefits from service and performance-based awards for the years ended December 31, 2013, 2012 and 2011 were $.1 million each year, as reported on the Consolidated Statements of Cash Flows in financing activities, and represents the reduction in income taxes otherwise payable during the period, attributable to the actual gross tax benefits in excess of the expected tax benefits for restricted shares vested in the current period. In the event of a Change in Control (as defined in the LTIP), vesting of the restricted shares will be accelerated and all restrictions will lapse. Unvested performance-based awards are based on a maximum potential payout. Actual shares awarded at the end of the performance period may be less than the maximum potential payout level depending on achievement of performance-based award objectives. To satisfy the vesting of its restricted share awards, the Company has reserved new shares from its authorized but unissued shares. Any additional granted awards will also be issued from the Company’s authorized but unissued shares. Under the LTIP, there are 429,873 common shares currently available for additional restricted share grants. Deferred Compensation Plan The Company maintains a trust, commonly referred to as a rabbi trust, in connection with the Company’s deferred compensation plan. This plan allows for two deferrals. First, Directors make elective deferrals of Director fees payable and held in the rabbi trust. The deferred compensation plan allows the Directors to elect to receive Director fees in shares of common stock of the Company at a later date instead of fees paid each quarter in cash. Second, this plan allows certain Company employees to defer LTIP restricted shares for future distribution in the form of common shares. Assets of the rabbi trust are consolidated, and the value of the Company’s stock held in the rabbi trust is classified in Shareholders’ equity and generally accounted for in a manner similar to treasury stock. The Company recognizes the original amount of the deferred compensation (fair value of the deferred stock award at the date of grant) as the basis for recognition in common shares issued to the rabbi trust. Changes in the fair value of amounts owed to certain employees or Directors are not recognized as the Company’s deferred compensation plan does not permit diversification and must be settled by the delivery of a fixed number of the Company’s common shares. As of December 31, 2013, 253,156 LTIP shares have been deferred and are being held by the rabbi trust. Share Option Awards The LTIP plan permits the grant of 100,000 options to buy common shares of the Company to certain employees at not less than fair market value of the shares on the date of grant. At December 31, 2013 there were 57,000 shares remaining available for issuance under the LTIP. Options issued to date under the Plan vest 50% after one year following the date of the grant, 75% after two years, and 100% after three years and expire from five to ten years from the date of grant. Shares issued as a result of stock option exercises will be funded with the issuance of new shares. The Company has elected to use the simplified method of calculating the expected term of the stock options and historical volatility to compute fair value under the Black-Scholes option-pricing model. The risk-free rate for periods within the contractual life of the option is based on the U.S. zero coupon Treasury yield in effect at the time of grant. Forfeitures have been estimated to be zero. There were 0, 8,000, and 14,500 options granted for the years ended December 31, 2013, 2012 and 2011. The fair values for the stock options granted in 2013, 2012 and 2011 were estimated at the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions:
|  | 2012 |  |  | 2011 |
Risk-free interest rate |  |  | 1.3 | % |  |  | 1.4 | %
Dividend yield |  |  | 1.9 | % |  |  | 1.9 | %
Expected life (years) |  |  | 6 |  |  |  | 6 |
Expected volatility |  |  | 47.0 | % |  |  | 47.1 | %
Activity in the Company’s LTIP plan for the year ended December 31, 2013 was as follows:
|  | Number of Shares |  |  | Weighted Average Exercise Price per Share |  |  | Weighted Average Remaining Contractual Term (Years) |  |  | Aggregate Intrinsic Value |
Outstanding at January 1, 2013 |  |  | 33,750 |  |  | $ | 50.21 |  |  |  |  |  |  |  |  |
Exercised |  |  | (14,250 | ) |  | $ | 45.11 |  |  |  |  |  |  |  |  |
Forfeited |  |  | (2,500 | ) |  | $ | 52.21 |  |  |  |  |  |  |  |  |
Outstanding (vested and expected to vest) at December 31, 2013 |  |  | 17,000 |  |  | $ | 54.20 |  |  |  | 8.1 |  |  | $ | 322 |
Exercisable at December 31, 2013 |  |  | 10,625 |  |  | $ | 53.49 |  |  |  | 7.9 |  |  | $ | 209 |
The weighted-average grant-date fair value of options granted during 2012 and 2011 was $21.76 and $19.92, respectively. There were 14,250, 1,250 and 3,000 stock options exercised during the years ended December 31, 2013, 2012 and 2011. The total intrinsic value of stock options exercised during the years ended December 31, 2013 and 2012 was $.4 million and less than $.1 million. Cash received for the exercise of stock options during 2013 and 2012 was $.6 million and $.1 million, respectively. For the years ended December 31, 2013, 2012 and 2011, the Company recorded compensation expense related to the stock options currently vesting of $.1 million, $.3 million and $.1 million. The total compensation cost related to nonvested awards not yet recognized at December 31, 2013 is expected to be a combined total of $.1 million over a weighted-average period of approximately 1.2 years. The excess tax benefits from share based awards for the years ended December 31, 2013, 2012 and 2011 was less than $.1 million, $0 and less than $.1 million, respectively as reported on the Consolidated Statements of Cash Flows in financing activities, and represents the reduction in income taxes otherwise payable during the period, attributable to the actual gross tax benefits in excess of the expected tax benefits for options exercised in the current period.

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- 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
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