Stock-Based Compensation Plans

9 Months Ended

Sep. 27, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Teledyne has long-term incentive plans pursuant to which it has granted non-qualified stock options, restricted stock and performance shares to certain employees. The Company also has non-employee director stock compensation plans, pursuant to which non-qualified stock options and common stock, and beginning in 2015 restricted stock units, have been issued to its directors.

Stock Incentive Plan

The following disclosures are based on stock options granted to Teledyne’s employees and directors. The Company recorded a total of $2.6 million and $9.7 million in stock option compensation expense for the third quarter of 2015 and the first nine months of 2015, respectively. The Company recorded a total of $3.9 million and $10.1 million in stock option compensation expense for the third quarter and the first nine months of 2014, respectively. Employee stock option grants are charged to expense evenly over the three year vesting period. Director stock option grants are charged to expense evenly over the one-year vesting period. For 2015, the Company currently expects approximately $12.2 million in stock option compensation expense based on stock options already granted. This amount is based on stock options currently outstanding and can be impacted by employee retirements and terminations. The Company issues shares of common stock upon the exercise of stock options. No stock options are expected to be granted in 2015.

Stock option transactions for Teledyne’s employee stock option plans for the third quarter and nine months ended September 27, 2015 are summarized as follows:



	2015
	Third Quarter				Nine Months
	Shares		Weighted Average Exercise Price		Shares		Weighted Average Exercise Price
Beginning balance	2,291,292		$	64.31	2,499,708		$	63.85
Exercised	(45,528	)	$	53.27	(217,458	)	$	54.06
Canceled	(10,185	)	$	87.23	(46,671	)	$	81.67
Ending balance	2,235,579		$	64.43	2,235,579		$	64.43
Options exercisable at end of period	1,732,496		$	57.50	1,732,496		$	57.50

Stock option transactions for Teledyne’s non-employee director stock option plans for the third quarter and nine months ended September 27, 2015 are summarized as follows:



	2015
	Third Quarter				Nine Months
	Shares		Weighted Average Exercise Price		Shares		Weighted Average Exercise Price
Beginning balance	316,895		$	52.62	351,169		$	51.76
Exercised	(8,129	)	$	33.04	(42,403	)	$	41.78
Ending balance	308,766		$	53.13	308,766		$	53.13
Options exercisable at end of period	308,296		$	53.12	308,296		$	53.12

Performance Share Plan and Restricted Stock Award Program

For the first of three annual installments of the 2012 to 2014 Performance Share Plan, 1,944 shares of Teledyne common stock were issued in the first quarter of 2015. The remaining 8,309 shares are expected to be issued in approximately two equal annual installments. In the first quarter of 2015, the restriction was removed for 29,642 shares of Teledyne common stock related to the 2012 to 2014 Restricted Stock Award Program. In addition, in the first nine months of 2015, 13,502 shares were forfeited. In the first nine months of 2015, the Company granted 34,054 shares of restricted stock securities to certain employees at a weighted average fair value of $92.74 per share for the 2015 to 2017 program. Also in the first nine months of 2015, the Company issued 9,534 shares of restricted stock units to non-employee directors at a weighted average fair value of $108.95 per share. The restricted stock units issued to non-employee directors vest one year from the grant date.