Equity-Based Compensation

At December 31, 2015, CTS had 4 equity-based compensation plans: the Non-Employee Directors' Stock Retirement Plan ("Directors' Plan"), the 2004 Omnibus Long-Term Incentive Plan ("2004 Plan"), the 2009 Omnibus Equity and Performance Incentive Plan ("2009 Plan"), and the 2014 Performance & Incentive Plan ("2014 Plan"). Future grants can only be made under the 2014 Plan.

The 2009 Plan, and previously the 2004 Plan, provide for grants of incentive stock options or nonqualified stock options to officers, key employees, and non-employee members of CTS' Board of Directors. In addition, the 2014 Plan, the 2009 Plan and the 2004 Plan allow for grants of stock appreciation rights, restricted stock, restricted stock units ("RSUs"), performance shares, performance units, and other stock awards.

The following table summarizes the compensation expense included in selling, general and administrative expenses in the Consolidated Statements of Earnings (Loss) related to equity-based compensation plans:



	For the Year Ended December 31,
	2015		2014		2013
Service-Based RSUs	$	1,944	$	1,771	$	2,879
Performance-Based RSUs	754		479		674
Market-Based RSUs	497		410		666
Total	$	3,195	$	2,660	$	4,219
Income tax benefit	$	1,201	$	1,000	$	1,600

CTS recorded a tax deduction related to RSUs that vested during the year ended December 31, 2015 in the amount of $1,047.

The following table summarizes the unrecognized compensation expense related to non-vested RSUs by type and the weighted-average period in which the expense is to be recognized:



	Unrecognized compensation expense at December 31, 2015		Weighted- average period
Service-Based RSUs	$	1,475	1.28 years
Performance-Based RSUs	344		1.34 years
Market-Based RSUs	447		1.36 years
Total	$	2,266

CTS recognizes expense on a straight-line basis over the requisite service period for each separately vesting portion of the award as if the award was, in substance, multiple awards.

The following table summarizes the status of these plans as of December 31, 2015:



	2014 Plan	2009 Plan	2004 Plan	Directors' Plan
Awards originally available	1,500,000	3,400,000	6,500,000	N/A
Stock options outstanding	—	—	—	—
RSUs outstanding	298,882	540,247	78,947	33,974
Options exercisable	—	—	—	—
Awards available for grant	1,113,383	540,247	78,947	33,974

Stock Options

Stock options are exercisable in cumulative annual installments over a maximum 10-year period, commencing at least one year from the date of grant. Stock options are generally granted with an exercise price equal to the market price of CTS' stock on the date of grant. The stock options generally vest over four years and have a 10-year contractual life. The awards generally contain provisions to either accelerate vesting or allow vesting to continue on schedule upon retirement if certain service and age requirements are met. The awards also provide for accelerated vesting if there is a change in control event.

CTS estimated the fair value of the stock option on the grant date using the Black-Scholes option-pricing model and assumptions for expected price volatility, option term, risk-free interest rate, and dividend yield. Expected price volatilities were based on historical volatilities of CTS' common stock. The expected option term was derived from historical data on exercise behavior. The dividend yield was based on historical dividend payments. The risk-free rate for periods within the contractual life of the option was based on the U.S. Treasury yield curve in effect at the time of grant.

A summary of the status of stock options as of December 31, 2015 and changes during the year then ended, is presented below:



	Year Ended
	December 31, 2015
	Options		Weighted- Average Exercise Price
Outstanding at beginning of year	5,200		$	12.35
Exercised	(5,200	)	$	12.35
Expired	—		$	—
Forfeited	—		$	—
Outstanding at end of period	—		$	—
Exercisable at end of period	—		$	—



	Year Ended
	December 31, 2015
Intrinsic values of stock options exercised	$	33
Weighted average remaining contractual life	0
Aggregate intrinsic values of options outstanding and options exercisable	$	—

There are no unvested stock options at December 31, 2015.

Service-Based Restricted Stock Units

Service-based RSUs entitle the holder to receive one share of common stock for each unit when the unit vests. RSUs are issued to officers, key employees and non-employee directors as compensation. Generally, the RSUs vest over a three-year period. RSUs granted to non-employee directors vest one month after granted. Upon vesting, the non-employee directors elect to either receive the stock associated with the RSU immediately, or defer receipt of the stock to a future date. The fair value of the RSUs is equivalent to the trading value of CTS' common stock on the grant date.

A summary of the status of RSUs for the 2004 Plan, 2009 Plan and 2014 Plan is presented below:



	Units		Weighted Average Grant Date Fair Value		Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value
Outstanding at January 1, 2015	517,965		$	12.06
Granted	166,725		17.31
Released	(166,801	)	12.44
Forfeited	(46,693	)	17.20
Outstanding at December 31, 2015	471,196		$	13.27	8.07	$	8,312
Releasable at December 31, 2015	252,347		$	10.66	19.69	$	4,451



	For the Year Ended December 31,
	2015		2014		2013
Weighted-average grant date fair value	$	17.31	$	9.00	$	10.97
Intrinsic value of RSUs released	$	2,933	$	5,670	$	4,535

A summary of the status of RSUs for the Director's Plan is presented below:



	Units	Weighted Average Grant Date Fair Value		Weighted Average Remaining Contractual Term		Aggregate Intrinsic Value
Outstanding at January 1, 2015	33,974	$	11.75
Granted	—	—
Released	—	—
Forfeited	—	—
Outstanding at December 31, 2015	33,974	$	11.75	N/A		$	599
Releasable at December 31, 2015	33,974	$	11.75	$	—	$	599

A summary of the nonvested RSUs is presented below:



	RSUs		Weighted Average Grant Date Fair Value
Nonvested at January 1, 2015	234,142		$	14.48
Granted	166,725		17.31
Vested	(135,325	)	14.10
Forfeited	(46,693	)	17.20
Nonvested at December 31, 2015	218,849		16.29



	Year Ended December 31,
	2015		2014		2013
Fair value of RSUs vested	$	1,908	$	2,055	$	3,700

Performance-Based Restricted Stock Units

CTS grants performance-based restricted stock unit awards for certain executives. Units may be awarded in the range from zero percent to 200% of the target amount. Vesting is subject to certification of the fiscal results of the year prior to the target year by CTS' independent auditors. The award rate is dependent upon CTS' achievement of either sales growth targets or cash flow targets as noted in the following table.

Performance-Based RSUs include the following components:



Grant Date	Target Units	Vesting Year	Vesting Dependency	Units Awarded
February 11, 2013	54,950	2016	Sales growth	—
February 11, 2013	47,100	2016	Cash flow	—
February 14, 2014	15,071	2017	Sales growth	—
February 14, 2014	12,918	2017	Cash flow	—
February, 5, 2015	24,150	2018	Sales growth	—
February 5, 2015	20,700	2018	Cash flow	—

Market-Based Restricted Stock Units

CTS grants market-based restricted stock unit awards for certain executives and key employees. Units may be awarded in the range from zero percent to 200% of the target amount. Vesting is subject to certification of the fiscal results of the year prior to the target year by CTS' independent auditors. The award rate will be determined using a matrix based on a percentile ranking of CTS total stockholder return with peer group total shareholder return over a three-year period. Awards are tied exclusively to CTS' total stockholder return relative to peer group companies' total stockholder return rates.

Market-Based RSUs include the following components:



Grant Date	Target Units	Vesting Year	Number of Peer Group Companies	Units Awarded
February 11, 2013	26,950	2016	20	—
February 11, 2013	32,500	2016	20	—
February 14, 2014	15,071	2017	15	—
February 5, 2015	24,150	2018	23	—