STOCK-BASED EMPLOYEE COMPENSATION PLANS

9 Months Ended

Sep. 30, 2015

STOCK-BASED EMPLOYEE COMPENSATION PLANS

5. STOCK-BASED EMPLOYEE COMPENSATION PLANS

The Company recognizes stock-based compensation expense in the consolidated financial statements for awards of equity instruments to employees and non-employee directors based on the grant-date fair value of those awards on a straight-line basis over the requisite service period of the award, which is generally the vesting term. The benefits of tax deductions in excess of recognized compensation expense is reported as a financing cash flow.