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Share-Based Compensation
12 Months Ended
Dec. 31, 2019
Share Based Compensation [Abstract]  
Share-Based Compensation

Note 14 – Share-Based Compensation

The table below sets forth the line items where share-based compensation expense was recorded for the twelve months ended December 31:

 

 

 

2019

 

 

2018

 

 

2017

 

Cost of goods sold

 

$

925

 

 

$

362

 

 

$

645

 

Selling, general and administrative expense

 

 

16,687

 

 

 

17,395

 

 

 

15,130

 

Research and development expense

 

 

2,923

 

 

 

2,979

 

 

 

2,834

 

Total share-based compensation expense

 

$

20,535

 

 

$

20,736

 

 

$

18,609

 

 

The table below sets forth share-based compensation expense by type for the twelve months ended December 31:

 

 

 

2019

 

 

2018

 

 

2017

 

Stock options

 

$

-

 

 

$

274

 

 

$

934

 

Share grants

 

 

20,535

 

 

 

20,462

 

 

 

17,675

 

Total share-based compensation expense

 

$

20,535

 

 

$

20,736

 

 

$

18,609

 

In May 2013, our stockholders approved our 2013 Equity Incentive Plan (“2013 Plan”). Since the approval of the 2013 Plan, all stock options are granted under the 2013 Plan, and we will not grant any further stock options under our 2001 Plan. Stock options under the 2013 Plan generally vest in equal annual installments over a four-year period and expire eight years after the grant date. The number of shares originally authorized to be awarded under the 2013 Plan was 6 million shares. In May 2017, our stockholders approved an amendment to the 2013 Plan, authorizing and additional 6 million shares to be awarded, bringing the total shares authorized to be awarded under the 2013 Plan to 12 million shares.

Share-based compensation expense for stock options granted in previous years was calculated on the date of grant using the Black-Scholes-Merton option-pricing model.  No stock options were granted in any of the periods presented.

Total cash received from option exercises was approximately $11.9 million, $4.9 million and $13.6 million during 2019, 2018 and 2017, respectively.

At December 31, 2019, there was no unrecognized compensation expense related to unvested options.  

The table below sets forth a summary of activity in our stock option plan: 

Stock Options

 

Shares

 

 

Weighted Average

Exercise Price

 

 

Weighted Average

Remaining

Contractual Term

(years)

 

 

Aggregate

Intrinsic Value

 

Outstanding at December 31, 2016

 

 

1,833

 

 

 

23.08

 

 

 

 

 

 

 

 

 

Exercised

 

 

(581

)

 

 

23.42

 

 

 

 

 

 

 

 

 

Forfeited or expired

 

 

(24

)

 

 

26.87

 

 

 

 

 

 

 

 

 

Outstanding at December 31, 2017

 

 

1,228

 

 

 

22.85

 

 

 

 

 

 

 

 

 

Exercised

 

 

(240

)

 

 

20.28

 

 

 

 

 

 

 

 

 

Outstanding at December 31, 2018

 

 

988

 

 

 

23.47

 

 

 

 

 

 

 

 

 

Exercised

 

 

(524

)

 

 

22.68

 

 

 

 

 

 

$

10,600

 

Outstanding and Exercisable  at December 31, 2019

 

 

464

 

 

 

24.37

 

 

 

2.0

 

 

$

14,849

 

 

The table below sets forth information about stock options outstanding at December 31, 2019:

 

Plan

 

Range of Exercise Prices

 

Number Exercisable

 

 

Weighted Average Remaining Contractual Life

(Years)

 

 

Weighted Average Exercise Price

 

2001 Plan

 

$15.05-29.21

 

 

259

 

 

 

2.0

 

 

$

23.17

 

2013 Plan

 

$23.35-27.92

 

 

205

 

 

 

2.0

 

 

25.91

 

 

Share Grants – Restricted stock awards and restricted stock units generally vest in equal annual installments over a four-year period. All new grants are granted under the 2013 Plan, and there will be no additional share grants under the 2001 Plan. Restricted stock grants are measured based on the fair market value of the underlying stock on the date of grant and compensation expense is recognized on a straight-line basis over the requisite four-year service period.  

 

Performance stock units (“PSUs”) are measured based on the fair market value of the underlying stock on the date of grant and compensation expense is recognized over the three-year performance period, with adjustments made to the expense to recognize the probable payout percentage. PSUs will vest upon the Company achieving a cumulative 3-year non-GAAP operating income target for the applicable periods.

The table below sets forth a summary of our non-vested share grants in 2019, 2018 and 2017:

Restricted and Performance Stock Grants

 

Shares

 

 

Weighted Average Grant Date Fair Value ($)

 

 

Aggregate Intrinsic Value

 

Nonvested at December 31, 2016

 

 

2,620

 

 

 

21.31

 

 

 

 

 

Granted

 

 

746

 

 

 

25.23

 

 

 

 

 

Vested

 

 

(645

)

 

 

21.89

 

 

 

 

 

Forfeited

 

 

(441

)

 

 

22.31

 

 

 

 

 

Nonvested at December 31, 2017

 

 

2,280

 

 

 

22.24

 

 

 

 

 

Granted

 

 

646

 

 

 

32.06

 

 

 

 

 

Vested

 

 

(1,213

)

 

 

21.39

 

 

 

 

 

Forfeited

 

 

(46

)

 

 

24.72

 

 

 

 

 

Nonvested at December 31, 2018

 

 

1,667

 

 

 

26.68

 

 

 

 

 

Granted

 

 

670

 

 

 

38.15

 

 

 

 

 

Vested

 

 

(573

)

 

 

24.90

 

 

$

20,682

 

Forfeited

 

 

(67

)

 

 

30.44

 

 

 

 

 

Nonvested at December 31, 2019

 

 

1,697

 

 

 

31.71

 

 

$

95,687

 

 

During 2017, the Company modified a performance-based award previously granted to our Chief Executive Officer.  The effect was to replace a performance-based grant covering 700,000 shares of the Company’s common stock with a performance-based grant covering 62,905 shares of the Company’s common stock and a restricted stock grant covering 62,905 of the Company’s common stock.  If certain performance criteria are met for the performance-based grant, Dr. Lu will receive 200% of that award or 125,810 shares.  The incremental expense if Dr. Lu received 200% of the performance-based grant award is approximately $3.3 million.  The incremental expense of the restricted stock grant is approximately $1.7 million. During 2018, we modified previously granted stock option and stock awards for two corporate officers who retired.  The result of the modification was the acceleration of the vesting of 7,500 stock options and 79,720 stock awards for the corporate officers.  The incremental expense recorded for this modification was approximately $1.8 million, which was expensed in SG&A during 2018.     

The total unrecognized share-based compensation expense as of December 31, 2019, was approximately $40.0 million, relating to share grants, which was expected to be recognized over a weighted average period of approximately 2.2 years. The aggregate fair value amount of share grants that vested during 2019 was $20.7 million.