12. Stock Compensation Plans

Share-Based Compensation

The Company originally established a Stock Option and Incentive Plan in 1997 (the “1997 Plan”). On June 1, 2006, the Company adopted the Amended and Restated Stock Option and Incentive Plan (the “Stock Option Plan”), which amended and extended the 1997 Plan. Under the plan, a total of 16 million shares of Common Stock (adjusted to account for the 2014 stock split) were reserved for issuance. The dates on which options granted under the Stock Option Plan become first exercisable are determined by the Compensation Committee of the Board of Directors, but generally vest over a four-year period from the date of grant. The term of any option may not exceed ten years from the date of grant.

The Company accounts for share-based compensation based on the estimated fair value of share-based payment awards on the date of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods in the Company’s Statement of Comprehensive Income. Share-based compensation expense recognized as above for the years ended December 31, 2014, 2013 and 2012 was $6.5 million, $4.7 million and $3.7 million, respectively, including a charge for restricted stock.

The shares issued upon the exercise of the options are new share issues.

Restricted Stock

On different dates during the year ended December 31, 2011 and 2010, the Company issued restricted stock awards of 182,728 and 418,716 (adjusted to account for the 2014 stock split), respectively, to its non-employee directors and some employees as well as to some employees of its subsidiaries. The restricted stock awards were granted to employees for their future services as a retention tool at a zero exercise price, vest in shares with regards to 25% of the awards issued on or after the first, second, third and fourth anniversary of the grant dates.

On different dates during the year ended December 31, 2014, December 31, 2013 and 2012, the Company issued restricted stock awards of 293,904, 187,056 and 217,656 (adjusted to account for the 2014 stock split), respectively, to its non-employee directors and some employees as well as to some employees of its subsidiaries. The restricted stock awards were granted to employees for their future services as a retention tool at a zero exercise price, vest in shares with regards to 25% of the awards issued on or after the first, second, third and fourth anniversary of the grant dates.

The impact on the Company’s results of operations of recording stock-based compensation (including impact of restricted stock) for the years ended December 31, 2014, 2013 and 2012 was as follows (in thousands):


Year Ended December 31,	2014		2013		2012
Cost of revenues	$	2,139	$	1,443	$	1,167
Selling, general and administrative expenses		4,318		3,289		2,558

	$	6,457	$	4,732	$	3,725

No Cash was received from option exercises under all share-based payment arrangements for the years ended December 31, 2014, 2013 and 2012, respectively.

A summary of the activity for restricted stock awards granted under our stock-based compensation plans as of December 31, 2014, 2013 and 2012 respectively and changes during the years then ended is presented below, appropriately adjusted, to reflect the 2014 stock split:


	2014					2013					2012
	Number Of Awards			Weighted Average Grant Date Fair Value		Number Of Awards			Weighted Average Grant Date Fair Value		Number Of Awards			Weighted Average Grant Date Fair Value
Unvested at January 1		501,292		$	28.64		521,716		$	23.25		486,880		$	19.01
Granted		293,904		$	42.79		187,056		$	36.53		217,656		$	28.72
Vested		(227,882	)	$	25.03		(194,480	)	$	22.07		(176,880	)	$	18.75
Forfeited		(3,000	)	$	44.90		(13,000	)	$	24.10		(5,940	)	$	10.74

Unvested at December 31		564,314		$	37.37		501,292		$	28.64		521,716		$	23.25

As of December 31, 2014, $17.8 million of total remaining unrecognized stock-based compensation cost related to restricted stock awards is expected to be recognized over the weighted-average remaining requisite service period of 2.7 years.