Stock-Based Compensation

6 Months Ended

Jun. 30, 2016

(a) Equity and Incentive Plan

The Company recognizes stock-based compensation in accordance with the provisions of ASC Topic 718, Compensation--Stock Compensation. Stock-based compensation expense was $841 and $916 for the three months ended June 30, 2016 and 2015, respectively, and $1,881 and $1,874 for the six months ended June 30, 2016 and 2015, respectively. As of June 30, 2016, there was $1,229 of total unrecognized compensation expense related to stock options, which is expected to be recognized over a weighted-average period of 2.25 years. As of June 30, 2016, there was $5,377 of total unrecognized compensation expense related to restricted stock awards, which is expected to be recognized over a weighted-average period of 2.86 years.

The Company granted 0 and 379 restricted stock awards to employees under the terms of the Amended and Restated 2006 Stock Incentive Plan during the three and six months ended June 30, 2016, respectively, and 0 and 163 restricted stock awards to employees under the terms of the Amended and Restated 2006 Stock Incentive Plan during the three and six months ended June 30, 2015, respectively. The restricted stock awards vest ratably over four years from the date of grant subject to the recipient remaining employed through the applicable vesting dates. Compensation expense for restricted stock awards is measured at fair value on the date of grant based on the number of shares granted and the quoted market closing price of the Company’s common stock. Such value is recognized as expense over the vesting period of the award, net of estimated forfeitures.

The Company granted 0 and 60 stock options to employees under the terms of the Amended and Restated 2006 Stock Incentive Plan during the three and six months ended June 30, 2016, respectively, and 0 and 95 stock options during the three and six months ended June 30, 2015, respectively.

The fair value of stock options granted during the three and six months ended June 30, 2016 and 2015 was estimated as of the date of grant using the Black-Scholes option-pricing model. The weighted-average fair value per share for all options granted during the six months ended June 30, 2016 and 2015 was $8.53 and $12.76, respectively. The weighted-average assumptions used to value options as of their grant date were as follows:




	Six Months Ended June 30,
	2016		2015
Risk-free interest rate	1.43	%	1.54	%
Expected volatility	38.22	%	44.30	%
Expected life (in years)	4.17		4.18
Dividend yield	0	%	0	%

On June 15, 2016, at the Company's 2016 Annual Meeting of Stockholders, the stockholders of the Company approved the 2016 Equity and Incentive Plan (2016 Plan). The 2016 Plan authorizes the Company to issue up to 3,000 shares of common stock (plus an additional 1,690 shares intended to roll over into the 2016 Plan shares subject to awards outstanding on June 15, 2016 under earlier plans that may be forfeited, canceled, required by the Company or terminated) pursuant to stock options, restricted stock awards and other stock-based awards.

(b) Employee Stock Purchase Plan

On June 15, 2016, at the Company's 2016 Annual Meeting of Stockholders, the stockholders of the Company also approved amendments to the Company's Amended and Restated Employee Stock Purchase Plan (ESPP) that, among other things, increased the number of shares of common stock reserved for issuance by 1,000 to a total of 1,650. As amended, the ESPP affords eligible employees the right to purchase common stock, via payroll deductions, through various offering periods at a purchase price equal to 85% of the fair market value of the common stock on the first or last day of the offering period, whichever is lower. The Company recorded compensation charges of $0 and $14 for the three months ended June 30, 2016 and 2015, respectively, and $0 and $29 for the six months ended June 30, 2016 and 2015, respectively, related to the ESPP.

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

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