STOCK-BASED COMPENSATION

9 Months Ended

Sep. 30, 2016

STOCK-BASED COMPENSATION [Abstract]

STOCK-BASED COMPENSATION

NOTE 11 - STOCK-BASED COMPENSATION

Restricted Stock

Under the restricted stock plans approved by our shareholders (the “Restricted Stock Plans”), directors, consultants and employees were awarded shares of DXP’s common stock. The shares of restricted stock granted to employees and that are outstanding as of September 30, 2016 vest in accordance with one of the following vesting schedules: 100% one year after date of grant; 33.3% each year for three years after the date of grant; 20% each year for five years after the grant date; or 10% each year for ten years after the grant date. The shares of restricted stock granted to non-employee directors of DXP vest one year after the grant date. The fair value of restricted stock awards was measured based upon the closing prices of DXP’s common stock on the grant dates and is recognized as compensation expense over the vesting period of the awards. Once restricted stock vests, new shares of the Company’s stock are issued.

The following table provides certain information regarding the shares authorized and outstanding under the Restricted Stock Plans at September 30, 2016:

Number of shares authorized for grants		1,300,000
Number of shares granted		(981,752	)
Number of shares forfeited		158,876
Number of shares expired from 2005 plan		(81,527	)
Number of shares available for future grants		395,597
Weighted-average grant price of granted shares	$	27.15

Changes in restricted stock for the nine months ended September 30, 2016 were as follows:

	Number of Shares			Weighted Average Grant Price
Non-vested at December 31, 2015		137,507		$	54.58
Granted		108,553		$	17.07
Forfeited		(15,000	)	$	91.56
Vested		(59,680	)	$	48.40
Non-vested at September 30, 2016		171,380		$	29.74

Compensation expense, associated with restricted stock, recognized in the nine months ended September 30, 2016 and 2015 was $1.9 million and $2.3 million, respectively. Related income tax losses recognized in earnings for the nine months ended September 30, 2016 were approximately $0.6 million. Unrecognized compensation expense under the Restricted Stock Plan at September 30, 2016 and December 31, 2015 was $3.9 million and $4.9 million, respectively. As of September 30, 2016, the weighted average period over which the unrecognized compensation expense is expected to be recognized is 19.1 months.