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Stock-Based Compensation
 9 Months Ended
Sep. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stock-Based Compensation
Stock-Based Compensation

Under the Company's 2004 Stock Incentive Plan ("2004 Plan"), the Company granted options to purchase shares of the Company's common stock at the fair market value on the date of grant. The options vested over periods of up to three years and have a term of 10 years from date of grant. At its November 2007 meeting, the Company's Compensation Committee decided that restricted common stock awards and stock units ("restricted stock") would be awarded in place of stock options for long-term incentive award grants to employees. Restricted stock granted to employees primarily vests 50% after two years and the remainder after three years from the date of grant. Restricted stock granted to non-employee directors generally vests on the first anniversary date of the grant. In February 2014, the Company's Board of Directors replaced the expired 2004 Plan by adopting the BorgWarner Inc. 2014 Stock Incentive Plan ("2014 Plan"). On April 30, 2014, the Company's stockholders approved the 2014 Plan. Under the 2014 Plan, 8 million shares are authorized for grant, of which approximately 7.0 million shares are available for future issuance as of September 30, 2015.

Stock options A summary of the Company’s stock option activity for the nine months ended September 30, 2015 is as follows:
 
Shares under option
(thousands)
 
Weighted average exercise price
 
Weighted average remaining contractual life
(in years)
 
Aggregate intrinsic value
(in millions)
Outstanding and exercisable at December 31, 2014
1,714

 
$
16.11

 
1.7
 
$
66.5

Exercised
(251
)
 
$
14.72

 
 
 

Outstanding and exercisable at March 31, 2015
1,463

 
$
16.35

 
1.5
 
$
64.6

Exercised
(103
)
 
$
14.66

 
 
 
 
Outstanding and exercisable at June 30, 2015
1,360

 
$
16.48

 
1.3
 
$
54.9

Exercised
(63
)
 
$
14.78

 
 
 
 
Canceled
(7
)
 
$
14.52

 
 
 
 
Outstanding and exercisable at September 30, 2015
1,290

 
$
16.57

 
1.2
 
$
32.3


Restricted stock The value of restricted stock is determined by the market value of the Company’s common stock at the date of grant. In 2015, restricted stock in the amount of 669,754 shares and 16,983 shares was granted to employees and non-employee directors, respectively. The value of the awards is recorded as unearned compensation within capital in excess of par value in equity and is amortized as compensation expense over the restriction periods.

The Company recorded restricted stock compensation expense of $6.9 million and $21.1 million for the three and nine months ended September 30, 2015, respectively, and $5.4 million and $15.3 million for the three and nine months ended September 30, 2014, respectively.

A summary of the Company’s nonvested restricted stock for the nine months ended September 30, 2015 is as follows:
 
Shares subject to restriction
(thousands)
 
Weighted average price
Nonvested at December 31, 2014
1,266

 
$
43.57

Granted
563

 
$
57.90

Vested
(568
)
 
$
38.35

Forfeited
(12
)
 
$
45.10

Nonvested at March 31, 2015
1,249

 
$
52.49

Granted
124

 
$
60.97

Vested
(20
)
 
$
61.79

Forfeited
(5
)
 
$
52.82

Nonvested at June 30, 2015
1,348

 
$
53.15

Forfeited
(5
)
 
$
51.11

Nonvested at September 30, 2015
1,343

 
$
53.15