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Share-Based Compensation
12 Months Ended
Dec. 31, 2020
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:

 

 

 

2020

 

 

2019

 

 

2018

 

Cost of goods sold

 

$

1,064

 

 

$

925

 

 

$

362

 

Selling, general and administrative expense

 

 

21,013

 

 

 

16,687

 

 

 

17,395

 

Research and development expense

 

 

3,183

 

 

 

2,923

 

 

 

2,979

 

Total share-based compensation expense

 

$

25,260

 

 

$

20,535

 

 

$

20,736

 

 

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

 

 

 

2020

 

 

2019

 

 

2018

 

Stock options

 

$

-

 

 

$

-

 

 

$

274

 

Share grants

 

 

25,260

 

 

 

20,535

 

 

 

20,462

 

Total share-based compensation expense

 

$

25,260

 

 

$

20,535

 

 

$

20,736

 

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 $6.8 million, $11.9 million and $4.9 million during 2020, 2019 and 2018, respectively.

At December 31, 2020, 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, 2017

 

 

1,228

 

 

 

22.85

 

 

 

 

 

 

 

 

 

Exercised

 

 

(240

)

 

 

20.28

 

 

 

 

 

 

 

 

 

Outstanding at December 31, 2018

 

 

988

 

 

 

23.47

 

 

 

 

 

 

$

8,693

 

Exercised

 

 

(524

)

 

 

22.68

 

 

 

 

 

 

$

10,600

 

Outstanding and Exercisable  at December 31, 2019

 

 

464

 

 

 

24.37

 

 

 

 

 

 

$

14,849

 

Exercised

 

 

(272

)

 

 

25.11

 

 

 

 

 

 

$

8,278

 

Outstanding and Exercisable  at December 31, 2020

 

 

192

 

 

 

23.32

 

 

 

1.4

 

 

$

9,059

 

 

 

The table below sets forth information about stock options outstanding at December 31, 2020:

 

Plan

 

Range of Exercise Prices

 

Number Exercisable

 

 

Weighted Average Remaining Contractual Life

(Years)

 

 

Weighted Average Exercise Price

 

2001 Plan

 

18.48 - 19.27

 

 

102

 

 

 

1.4

 

 

$

19.25

 

2013 Plan

 

27.92

 

 

90

 

 

 

1.4

 

 

27.92

 

 

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 2020, 2019 and 2018:

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

 

 

 

 

 

Forfeited

 

 

(67

)

 

 

30.44

 

 

 

 

 

Nonvested at December 31, 2019

 

 

1,697

 

 

 

31.71

 

 

 

 

 

Granted

 

 

573

 

 

 

48.83

 

 

 

 

 

Vested

 

 

(770

)

 

 

27.78

 

 

$

37,620

 

Forfeited and other

 

 

88

 

 

 

38.31

 

 

 

 

 

Nonvested at December 31, 2020

 

 

1,588

 

 

 

39.30

 

 

$

111,947

 

 

  During 2020, in connection with the retirement of a member of the Company’s board of directors, the Company modified that director’s unvested RSU grants to vest upon his retirement.  The shares subject to the modified grants will be released to that board member as if they were vesting under the original vesting timeline.  In connection with this modification, the Company recorded additional expense of 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, 2020, was approximately $44.8 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 2020 was $37.6 million.