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Stock-based Compensation (Tables)
12 Months Ended
Dec. 31, 2016
Summary Components of Stock-Based Compensation Expense

The following table summarizes the components of stock-based compensation expense in the condensed consolidated statements of operations for the years ended December 31, 2016, 2015 and 2014:

 

 

 

Years ended December 31,

 

 

 

2016

 

 

2015

 

 

2014

 

Cost of services

 

$

559

 

 

$

525

 

 

$

203

 

Cost of product sales

 

 

44

 

 

 

45

 

 

 

53

 

Selling, general and administrative

 

 

4,082

 

 

 

3,655

 

 

 

3,135

 

Product development

 

 

338

 

 

 

395

 

 

 

219

 

Total

 

$

5,023

 

 

$

4,620

 

 

$

3,610

 

 

Time-Based Stock Appreciation Rights [Member]  
Summary of Stock Appreciation Rights

A summary of the Company’s time-based SARs for the year ended December 31, 2016 is as follows:

 

 

 

Number of

Shares

 

 

Weighted-Average

Exercise Price

 

 

Weighted-Average

Remaining

Contractual

Term (years)

 

 

Aggregate

Intrinsic Value

 

Outstanding at January 1, 2016

 

 

4,109,184

 

 

$

5.22

 

 

 

 

 

 

 

 

 

Granted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exercised

 

 

(319,790

)

 

 

5.18

 

 

 

 

 

 

 

 

 

Forfeited or expired

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Outstanding at December 31, 2016

 

 

3,789,394

 

 

$

5.23

 

 

 

4.49

 

 

$

13,798

 

Exercisable at December 31, 2016

 

 

3,753,027

 

 

$

5.23

 

 

 

4.39

 

 

$

13,992

 

Vested and expected to vest at December 31, 2016

 

 

3,789,394

 

 

$

5.23

 

 

$

4.49

 

 

$

13,798

 

 

Performance-Based Stock Appreciation Rights [Member]  
Summary of Stock Appreciation Rights

A summary of the Company’s performance-based SARs for the year ended December 31, 2016 is as follows:

 

 

 

Number of

Shares

 

 

Weighted-Average

Exercise Price

 

 

Weighted-Average

Remaining

Contractual

Term  (years)

 

 

Aggregate

Intrinsic Value

 

Outstanding at January 1, 2016

 

 

778,774

 

 

$

6.33

 

 

 

 

 

 

 

 

 

Granted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exercised

 

 

(19,950

)

 

 

2.95

 

 

 

 

 

 

 

 

 

Forfeited or expired

 

 

(169,400

)

 

 

10.97

 

 

 

 

 

 

 

 

 

Outstanding at December 31, 2016

 

 

589,424

 

 

$

6.06

 

 

 

4.30

 

 

$

2,632

 

Exercisable at December 31, 2016

 

 

589,424

 

 

$

6.06

 

 

 

4.37

 

 

$

2,632

 

Vested and expected to vest at December 31, 2016

 

 

589,424

 

 

$

6.06

 

 

 

4.30

 

 

$

2,632

 

 

Fair Value of Stock Appreciation Rights Estimated

The fair value of each time-based and performance-based SAR award is estimated on the date of grant using the Black-Scholes option pricing model with the assumptions described below. For the periods indicated the expected volatility was based on the Company’s historical volatility over the expected terms of SAR awards. Estimated forfeitures were based on voluntary and involuntary termination behavior, as well as analysis of actual forfeitures. The risk-free interest rate was based on the U.S. Treasury yield curve at the time of the grant over the expected term of the SAR grants. The Company did not grant time-based or performance-based SARs during the year ended December 31, 2016.

 

 

 

Years ended December 31,

 

 

 

2015

 

 

2014

 

Risk-free interest rate

 

1.35% to 1.82%

 

 

1.77% to 1.94%

 

Expected life (years)

 

 

6.0

 

 

 

6.0

 

Estimated volatility factor

 

62.7% to 64.6%

 

 

64.8% to 67.3%

 

Expected dividends

 

None

 

 

None

 

 

Time-Based Restricted Stock Units [Member]  
Summary of Restricted Stock Units

A summary of the Company’s time-based RSUs for the year ended December 31, 2016 is as follows:

 

 

 

Shares

 

 

Weighted-Average

Grant Date

Fair Value

 

Balance at January 1, 2016

 

 

366,004

 

 

$

6.63

 

Granted

 

 

428,658

 

 

 

9.25

 

Vested

 

 

(76,707

)

 

 

6.44

 

Forfeited or expired

 

 

(26,003

)

 

 

6.38

 

Balance at December 31, 2016

 

 

691,952

 

 

$

8.28

 

 

Performance-Based Restricted Stock Units [Member]  
Summary of Restricted Stock Units

A summary of the Company’s performance-based RSUs for the year ended December 31, 2016 is as follows:

 

 

 

Shares

 

 

Weighted-Average

Grant Date

Fair Value

 

Balance at January 1, 2016

 

 

499,369

 

 

$

6.66

 

Granted

 

 

210,425

 

 

 

9.13

 

Vested

 

 

(175,389

)

 

 

6.53

 

Forfeited or expired

 

 

(60,797

)

 

 

6.71

 

Balance at December 31, 2016

 

 

473,608

 

 

$

7.80

 

 

Performance Units [Member]  
Fair Value of Stock Appreciation Rights Estimated

As the MPUs contain both a performance and service condition, the MPUs have been treated as a series of three separate awards, or tranches, for purposes of recognizing stock-based compensation expense. The Company recognizes stock-based compensation expense on a tranche-by-tranche basis over the requisite service period for that specific tranche. The Company estimated the fair value of the MPUs using a Monte Carlo Simulation Model that used the following assumptions:

 

 

 

Years Ended December 31,

 

 

2016

 

2015

 

2014

Risk-free interest rate

 

0.85% to 1.47%

 

0.65% to 1.31%

 

0.25% to 1.10%

Estimated volatility factor

 

33.0% to 36.0%

 

34.0% to 38.0%

 

39.0% to 41.0%

Expected dividends

 

None

 

None

 

None