Stock-Based Compensation Plans

3 Months Ended

Apr. 04, 2021

Share-based Payment Arrangement [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 Board of Director stock compensation plans, pursuant to which common stock, stock options and restricted stock units have been issued to its directors.

Stock Incentive Plan

Stock option compensation expense was $4.2 million for the first quarter of 2021 and was $7.4 million for the first quarter of 2020. Employee stock option grants are charged to expense evenly over the three year vesting period except for stock options granted after 2018 to Teledyne’s Executive Chairman and Teledyne’s President and Chief Executive Officer which are expensed immediately. For 2021, the Company currently expects approximately $20.8 million in stock option compensation expense based on stock options outstanding and stock options expected to be granted in the third quarter of 2021. This amount can be impacted by employee retirements and terminations or stock options granted during the remainder of the year. The Company issues shares of common stock upon the exercise of stock options.

Stock option transactions for the first quarter of 2021 are summarized as follows:


	2021
	First Quarter
	Shares	Weighted Average Exercise Price
Beginning balance	1,819,147	$	170.10

Exercised	(90,110)	$	118.66
Canceled	(7,248)	$	302.75
Ending balance	1,721,789	$	172.23
Exercisable at end of period	1,450,880	$	146.14

Performance Share Plan and Restricted Stock Award Program

In the first quarter of 2018, the performance cycle for the three-year period ending December 31, 2020, was set. Under the plan and based on actual performance, Teledyne issued 9,588 shares of its common stock in the first quarter 2021. A total of 35,033 shares remain to be issued in two equal installments in 2022 and 2023.

The following table shows the restricted stock activity for the first three months of 2021:


	Shares	Weighted average fair value per share
Balance, January 3, 2021	43,405	$	228.80
Granted	10,227	$	334.92
Vested	(15,423)	$	176.64
Forfeited/Canceled	(394)	$	176.64
Balance, April 4, 2021	37,815	$	279.31