SHARE-BASED COMPENSATION

12 Months Ended

Dec. 31, 2016

STOCK-BASED COMPENSATION [Abstract]

STOCK-BASED COMPENSATION

NOTE 11 - SHARE-BASED COMPENSATION

Restricted Stock

Under the restricted stock plans approved by our shareholders, directors, consultants and employees may be awarded shares of DXP’s common stock. The shares of restricted stock granted to employees and that are outstanding as of December 31, 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 date of grant; 20% each year for five years after date of grant; or 10% each year for ten years after date of grant. 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 is 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.  At December 31, 2016, 419,597 shares were available for future grant.

Changes in restricted stock for the twelve months ended December 31, 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		(39,000	)	$	65.41
Vested		(63,680	)	$	46.65
Non-vested at December 31, 2016		143,380		$	26.76

Changes in restricted stock for the twelve months ended December 31, 2015 were as follows:

	Number of Shares			Weighted Average Grant Price
Non-vested at December 31, 2014		179,942		$	52.71
Granted		35,821		$	40.95
Forfeited		(20,855	)	$	41.34
Vested		(57,401	)	$	44.99
Non-vested at December 31, 2015		137,507		$	54.58

Changes in restricted stock for the twelve months ended December 31, 2014 were as follows:

	Number of Shares			Weighted Average Grant Price
Non-vested at December 31, 2013		211,510		$	36.17
Granted		52,219		$	93.12
Forfeited		(14,112	)	$	38.68
Vested		(69,675	)	$	35.41
Non-vested at December 31, 2014		179,942		$	52.71

Compensation expense, associated with restricted stock, recognized in the years ended December 31, 2016, 2015 and 2014 was $2.0 million, $3.0 million, and $3.6 million, respectively. Related income tax benefits recognized in earnings in the years ended December 31, 2016, 2015 and 2014 were approximately $0.8 million, $1.2 million and $1.4 million, respectively. Unrecognized compensation expense under the Restricted Stock Plan at December 31, 2016 and December 31, 2015 was $2.7 million and $4.9 million, respectively. As of December 31, 2016, the weighted average period over which the unrecognized compensation expense is expected to be recognized is 15.2 months.