Stock-based Compensation | 3 Months Ended |
Mar. 31, 2015 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-based Compensation | Stock-based Compensation |
Equity Incentive Plans |
In 1999, the Company adopted the 1999 Stock Incentive Plan (the “1999 Plan”). The 1999 Plan terminated in June 2009 whereby no new options or awards are permitted to be granted. In April 2009, the Company adopted the 2009 Equity Incentive Plan. This plan provides for the grant of incentive stock options, nonqualified stock options, restricted stock awards, restricted stock units (“RSUs”) and stock appreciation rights. In June 2010, in connection with the Company’s initial public offering (“IPO”), the 2009 Equity Incentive Plan was amended and restated to provide for, among other things, annual increases in the share reserve (as amended and restated, the “2009 Plan”). |
The term of stock-based grants is up to ten years, except that certain stock-based grants during fiscal years 2006 through 2009 have a term of five years. The requisite vesting period for grants made under the 2009 Plan is typically three or four years. On each of January 1, 2014 and 2015, 1,250,000 shares were added to the 2009 Plan. At March 31, 2015, the Company had 2,412,826 shares of common stock available for issuance under the 2009 Plan. |
Stock-based compensation expense recognized by the Company was as follows (in thousands): |
| | | |
| | | | | | | | | | |
| Three Months Ended | | | |
March 31, | | | |
| 2015 | | 2014 | | | |
Stock options | $ | 1,300 | | | $ | 1,996 | | | | |
| | |
Restricted stock units | 3,839 | | | 7,117 | | | | |
| | |
Performance stock units | 904 | | | 1,269 | | | | |
| | |
Total recognized stock-based compensation expense | $ | 6,043 | | | $ | 10,382 | | | | |
| | |
Stock Options |
The following table presents summary information related to stock options: |
|
| | | | | | | | | | |
| Number of Options Outstanding | | Weighted Average Exercise Price | | Weighted Average Remaining Contractual Term (years) | | Aggregate Intrinsic Value |
| | | | | | | (in thousands) |
Balance, December 31, 2014 | 1,678,996 | | | $ | 26.73 | | | | | |
|
Granted | 133,500 | | | 27.73 | | | | | |
|
Exercised | (45,666 | ) | | 17.57 | | | | | |
|
Forfeited | (25,056 | ) | | 30.75 | | | | | |
|
Expired | (6,560 | ) | | 32.81 | | | | | |
|
Balance, March 31, 2015 | 1,735,214 | | | $ | 26.97 | | | 7.32 | | $14,641 |
|
| | | | | | | |
Vested and Exercisable at March 31, 2015 | 950,023 | | | $ | 24.99 | | | 6.23 | | $10,498 |
|
During the three months ended March 31, 2015 and 2014, the Company granted stock options with a weighted-average grant date fair value of $13.56 and $15.35, respectively. For three months ended March 31, 2015 and 2014, the intrinsic value of stock options exercised was $0.7 million and $0.4 million, respectively, and cash received from stock options exercised was $0.8 million and $0.1 million, respectively. |
At March 31, 2015, unrecognized stock-based compensation expense, net of estimated forfeitures, related to unvested stock options was $5.4 million, which is scheduled to be recognized over a weighted average period of 1.24 years. To the extent the actual forfeiture rate is different than what the Company has anticipated at March 31, 2015, stock-based compensation expense will be different from expectations. |
Restricted Stock Units |
The following table presents a summary of activity for RSUs (excluding RSUs that are subject to performance-based vesting conditions (“PSUs”)): |
|
| | | | |
| | | | | | | | | | |
| Number of RSUs | | Weighted Average Grant Date Fair Value | | | | |
Balance, December 31, 2014 | 1,029,787 | | | $ | 32.06 | | | | | |
| | | |
Granted | 175,512 | | | 28.42 | | | | | |
| | | |
Vested | (125,199 | ) | | 33.75 | | | | | |
| | | |
Forfeited | (6,870 | ) | | 31.36 | | | | | |
| | | |
Balance, March 31, 2015 | 1,073,230 | | | $ | 31.29 | | | | | |
| | | |
|
The RSUs generally vest over three or four years from the vesting commencement date and on vesting the holder receives one share of common stock for each RSU. |
At March 31, 2015, unrecognized stock-based compensation expense related to unvested RSUs was $11.2 million, which is scheduled to be recognized over a weighted average period of 1.09 years. To the extent the actual forfeiture rate is different than what the Company has anticipated at March 31, 2015, stock-based compensation expense will be different from expectations. |
Performance Stock Units |
The following table presents a summary of activity for PSUs: |
|
| | | | |
| | | | | | | | | | |
| Number of PSUs | | Weighted Average Grant Date Fair Value | | | | |
Balance, December 31, 2014 | 557,588 | | | $ | 26.88 | | | | | |
| | | |
Granted | — | | | — | | | | | |
| | | |
Vested | — | | | — | | | | | |
| | | |
Forfeited | — | | | — | | | | | |
| | | |
Balance, March 31, 2015 | 557,588 | | | $ | 26.88 | | | | | |
| | | |
|
The PSUs generally vest over three or four years from the vesting commencement date, subject to the satisfaction of certain performance conditions, and on vesting the holder receives one share of common stock for each PSU. |
At March 31, 2015, unrecognized stock-based compensation expense related to unvested PSUs was $3.3 million, which is scheduled to be recognized over a weighted average period of 1.23 years. To the extent the actual forfeiture rate is different than what the Company has anticipated at March 31, 2015, stock-based compensation expense will be different from expectations. |
Tax Benefits |
Upon adoption of the FASB’s guidance on stock-based compensation, the Company elected the alternative transition method (short cut method) provided for calculating the tax effects of stock-based compensation. The alternative transition method includes simplified methods to establish the beginning balance of the additional paid-in capital pool (“APIC pool”) related to the tax effects of employee stock-based compensation, and to determine the subsequent impact on the APIC pool and consolidated statements of cash flows related to the tax effect of employee stock-based compensation awards that are outstanding upon adoption. As of March 31, 2015, the Company’s APIC pool balance was $18.9 million. |
The Company applies a with-and-without approach in determining its intra-period allocation of tax expense or benefit attributable to stock-based compensation deductions. Tax deductions in excess of previously recorded benefits (windfalls) included in net operating loss carryforwards but not reflected in deferred tax assets were $25.9 million and $49.9 million at March 31, 2015 and December 31, 2014, respectively. |