XML 37 R23.htm IDEA: XBRL DOCUMENT
v3.22.4

Stock-Based Compensation | 12 Months Ended
--- | ---
Dec. 31, 2022
Share-Based Payment Arrangement [Abstract] |
Stock-Based Compensation | Stock-Based Compensation Stock-based compensation expense for each employee and director is presented in the same statement of operations caption as their cash compensation. Stock-based compensation expense by statement of operations caption and the related income tax benefit were as follows:
| Year Ended December 31,
(In thousands) | 2022 |  | 2021 |  | 2020
Cost of sales | $ | 155 |  |  | $ | 156 |  |  | $ | 182 |
Research and development expenses | 1,342 |  |  | 1,253 |  |  | 1,099 |
Selling, general and administrative expenses: |  |  |  |  |
Employees | 7,257 |  |  | 6,997 |  |  | 6,257 |
Outside directors | 1,259 |  |  | 1,563 |  |  | 1,584 |
Total employee and director stock-based compensation expense | $ | 10,013 |  |  | $ | 9,969 |  |  | $ | 9,122 |
Income tax benefit | $ | 1,660 |  |  | $ | 1,718 |  |  | $ | 1,594 |
Stock Options The assumptions we utilized in the Black-Scholes option pricing model and the resulting weighted average fair value of stock option grants were the following:
| Year Ended December 31,
| 2022 |  | 2021 |  | 2020
Weighted average fair value of grants | $ | 14.51 |  |  | $ | 23.97 |  |  | $ | 17.70 |
Risk-free interest rate | 1.93 | % |  | 0.41 | % |  | 1.44 | %
Expected volatility | 49.35 | % |  | 48.49 | % |  | 43.95 | %
Expected life in years | 4.73 |  | 4.62 |  | 4.59
Stock option activity was as follows:
| 2022 |  | 2021 |  | 2020
| Number of Options (in 000's) |  | Weighted-Average Exercise Price |  | Weighted-Average Remaining Contractual Term (in years) |  | Aggregate Intrinsic Value (in 000's) |  | Number of Options (in 000's) |  | Weighted-Average Exercise Price |  | Weighted-Average Remaining Contractual Term (in years) |  | Aggregate Intrinsic Value (in 000's) |  | Number of Options (in 000's) |  | Weighted-Average Exercise Price |  | Weighted-Average Remaining Contractual Term (in years) |  | Aggregate Intrinsic Value (in 000's)
Outstanding at beginning of the year | 800 |  |  | $ | 45.55 |  |  |  |  |  |  | 774 |  |  | $ | 43.01 |  |  |  |  |  |  | 745 |  |  | $ | 41.73 |  |  |  |  |
Granted | 139 |  |  | 33.42 |  |  |  |  |  |  | 80 |  |  | 59.43 |  |  |  |  |  |  | 109 |  |  | 46.17 |  |  |  |  |
Exercised | (80) |  |  | 19.25 |  |  |  |  | $ | 292 |  |  | (54) |  |  | 30.04 |  |  |  |  | $ | 931 |  |  | (80) |  |  | 35.28 |  |  |  |  | $ | 1,334 |
Forfeited/canceled/expired | (77) |  |  | 64.81 |  |  |  |  |  |  | — |  |  | — |  |  |  |  |  |  | — |  |  | — |  |  |  |  |
Outstanding at end of the year (1) | 782 |  |  | $ | 44.16 |  |  | 3.45 |  | $ | — |  |  | 800 |  |  | $ | 45.55 |  |  | 3.15 |  | $ | 3,780 |  |  | 774 |  |  | $ | 43.01 |  |  | 3.71 |  | $ | 9,228 |
Vested and expected to vest at the end of the year (1) | 782 |  |  | $ | 44.16 |  |  | 3.45 |  | $ | — |  |  | 800 |  |  | $ | 45.55 |  |  | 3.15 |  | $ | 3,780 |  |  | 774 |  |  | $ | 43.01 |  |  | 3.71 |  | $ | 9,228 |
Exercisable at the end of the year (1) | 600 |  |  | $ | 45.77 |  |  | 2.61 |  | $ | — |  |  | 656 |  |  | $ | 44.08 |  |  | 2.58 |  | $ | 3,608 |  |  | 582 |  |  | $ | 43.90 |  |  | 2.98 |  | $ | 6,887 |
(1)The aggregate intrinsic value represents the total pre-tax value (the difference between our closing stock price on the last trading day of 2022, 2021 and 2020 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had they all exercised their options on December 31, 2022, 2021 and 2020. This amount will change based on the fair market value of our stock. The value of shares withheld in lieu of receiving cash from option exercises in the years ended December 31, 2022, 2021 and 2020 was $1.5 million, $0.6 million and $2.8 million, respectively. Cash received from option exercises for the year ended December 31, 2021 was $1.0 million. There was no cash received from option exercises for the years ended December 31, 2022 and 2020. The actual tax benefit realized from option exercises was $0.1 million, $0.2 million and $0.3 million for the years ended December 31, 2022, 2021 and 2020, respectively. Significant option groups outstanding at December 31, 2022 and the related weighted average exercise price and life information were as follows:
|  | Options Outstanding |  | Options Exercisable
Range of Exercise Prices |  | Number Outstanding (in 000's) |  | Weighted-Average Remaining Contractual Term (in years) |  | Weighted-Average Exercise Price |  | Number Exercisable (in 000's) |  | Weighted-Average Exercise Price
$26.64 to $34.55 |  | 290 |  |  | 4.80 |  | $ | 30.12 |  |  | 150 |  |  | $ | 27.07 |
$44.95 to $46.17 |  | 207 |  |  | 3.60 |  | 45.59 |  |  | 198 |  |  | 45.56 |
$51.38 to $62.70 |  | 285 |  |  | 2.28 |  | 57.39 |  |  | 252 |  |  | 57.12 |
|  | 782 |  |  | 3.45 |  | $ | 44.16 |  |  | 600 |  |  | $ | 45.77 |
As of December 31, 2022, we expect to recognize $2.3 million of total unrecognized pre-tax stock-based compensation expense related to non-vested stock options over a remaining weighted-average life of 1.8 years. On February 9, 2023, certain executive employees were granted stock options to acquire, in the aggregate, up to 235,455 shares of our common stock, in connection with the 2022 annual review cycle. The options were granted as part of the executive compensation program and are subject to a three-year vesting period (33.33% on February 9, 2024 and 8.33% each quarter thereafter). The total grant date fair value of these awards was $2.6 million. Restricted Stock Non-vested restricted stock award activity was as follows:
| 2022 |  | 2021 |  | 2020
| Shares (in 000's) |  | Weighted-Average Grant Date Fair Value |  | Shares (in 000's) |  | Weighted-Average Grant Date Fair Value |  | Shares (in 000's) |  | Weighted-Average Grant Date Fair Value
Non-vested at beginning of the year | 310 |  |  | $ | 44.41 |  |  | 374 |  |  | $ | 34.53 |  |  | 310 |  |  | $ | 34.99 |
Granted | 262 |  |  | 31.05 |  |  | 156 |  |  | 56.90 |  |  | 238 |  |  | 36.85 |
Vested | (191) |  |  | 41.09 |  |  | (211) |  |  | 36.35 |  |  | (166) |  |  | 38.28 |
Forfeited | (5) |  |  | 43.22 |  |  | (9) |  |  | 39.65 |  |  | (8) |  |  | 43.44 |
Non-vested at end of the year | 376 |  |  | $ | 36.82 |  |  | 310 |  |  | $ | 44.41 |  |  | 374 |  |  | $ | 34.53 |
As of December 31, 2022, we expect to recognize $8.8 million of total unrecognized pre-tax stock-based compensation expense related to non-vested restricted stock awards over a weighted-average life of 1.7 years. In February 2023, certain executives were granted 102,965 restricted stock awards, in the aggregate, in connection with the 2022 annual review cycle. These awards were granted as part of the executive compensation program and are subject to a three-year vesting period (33.33% on February 9, 2024 and 8.33% each quarter thereafter). The total grant date fair value of these awards was $2.6 million. Stock Incentive Plans Our active stock-based incentive plans include those adopted in 2010, 2014 and 2018 ("Stock Incentive Plans"). Under the Stock Incentive Plans, we may grant stock options, stock appreciation rights, restricted stock units, performance stock units, or any combination thereof for a period of ten years from the approval date of each respective plan, unless the plan is terminated by resolution of our Board of Directors. No stock appreciation rights or performance stock units have been awarded under our Stock Incentive Plans. Only directors and employees meeting certain employment qualifications are eligible to receive stock-based awards. The grant price of stock option and restricted stock awards granted under our Stock Incentive Plans is the average of the high and low trades of our stock on the grant date. We prohibit the re-pricing or backdating of stock options. Our stock options become exercisable in various proportions over a three-year time frame. Stock options have a maximum ten-year term. Restricted stock awards vest in various proportions over a one- to three-year time period. Detailed information regarding our active Stock Incentive Plans was as follows at December 31, 2022:
Name |  | Approval Date |  | Total Shares Available for Grant Under the Plan |  | Remaining Shares Available for Grant Under the Plan |  | Outstanding Shares Granted Under the Plan
2010 Stock Incentive Plan |  | 6/15/2010 |  | 1,000,000 |  |  | — |  |  | 13,219 |
2014 Stock Incentive Plan |  | 6/12/2014 |  | 1,100,000 |  |  | — |  |  | 269,891 |
2018 Equity and Incentive Compensation Plan (1) |  | 6/4/2018 |  | 2,196,344 |  |  | 777,152 |  |  | 875,465 |
|  |  |  |  |  | 777,152 |  |  | 1,158,575 |
(1)The 2018 Equity and Incentive Compensation Plan was amended in June 2021 to add an additional 1,100,000 shares, as approved by our stockholders.

X
- Definition The entire disclosure for share-based payment arrangement. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=128089324&loc=d3e5070-113901 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI https://asc.fasb.org/topic&trid=2228938 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (l) -URI https://asc.fasb.org/extlink&oid=128089324&loc=d3e5070-113901 Reference 4: http://www.xbrl.org/2003/role/exampleRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a)(1) -URI https://asc.fasb.org/extlink&oid=128089324&loc=d3e5070-113901 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (h)(2)(i) -URI https://asc.fasb.org/extlink&oid=128089324&loc=d3e5070-113901 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (h)(2) -URI https://asc.fasb.org/extlink&oid=128089324&loc=d3e5070-113901 + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types: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