5.	SHARE-BASED COMPENSATION

The Company measures and recognizes compensation expense for all share-based payments based on the grant-date fair value of those awards. All of the Company’s existing stock option awards and unvested stock awards have been determined to be equity-classified awards.

The Company’s 2001 Equity Incentive Plan provides for the granting of stock options, stock appreciation rights, restricted stock, performance shares and other share-based awards and benefits up to an aggregate of 1,800,000 class A and 300,000 class B shares of the Company’s common stock. Stock options granted may be either nonqualified or incentive stock options. Stock options vest over one to five years following the date of grant and option terms are generally five to ten years following the date of grant.

The Company’s 2004 Non-Employee Director Stock Plan (the “2004 Director Plan”) is a nonqualified plan that provides for the granting of options with respect to 1,650,000 class A and 275,000 class B shares of the Company’s common stock. The 2004 Director Plan provides for grants of nonqualified stock options to each director of the Company who is not employed by the Company. On the date of each annual meeting of shareholders of the Company, options to purchase 36,000 class A shares and 6,000 class B shares of the Company’s common stock are granted to directors that are re-elected or retained as a director at such meeting. Stock options vest one year following the date of grant and option terms are generally ten years following the date of grant, or three years in the case of termination of the outside director’s service.

The Company’s 2006 Equity Incentive Plan provides for the granting of stock options, stock appreciation rights, restricted stock, performance shares and other share-based awards and benefits up to an aggregate of 1,800,000 class A and 300,000 class B shares of the Company’s common stock. Stock options granted may be either incentive stock options or nonqualified stock options. Vesting terms vary with each grant and option terms are generally five to ten years following the date of grant.

The Company granted options to purchase 81,306 shares of the Company’s class A common stock and 13,551 shares of the class B common stock during the three-month period ended March 31, 2015. The Company granted options to purchase 24,166 shares of class A common stock and 2,217 shares of class B common stock during the three-month period ended March 31, 2014. Options to purchase shares of common stock were granted with exercise prices equal to the fair value of the common stock on the date of grant. The fair value of the stock options granted was estimated using a Black-Scholes valuation model with the following assumptions:

	2015						2014

	Class A			Class B			Class A			Class B
Expected dividend yield at date of grant		2.57	%		5.72	%		1.47	%		4.87	%
Expected stock price volatility		34.87	%		33.94	%		32.03	%		32.65	%
Risk-free interest rate		1.78	%		1.78	%		2.37	%		2.37	%
Expected life of options (in years)		7			7			7			7

The risk-free interest rate assumptions were based on the U.S. Treasury yield curve in effect at the time of the grant. The expected volatility was based on historical monthly price changes of the Company’s common stock based on the expected life of the options at the date of grant. The expected life of options is the average number of years the Company estimates that options will be outstanding. The Company considers groups of associates that have similar historical exercise behavior separately for valuation purposes.

The following table summarizes stock option activity under the Company’s 2001 and 2006 Equity Incentive Plans and the 2004 Director Plan for the three months ended March 31, 2015:

	Number of Options			Weighted Average Exercise Price		Weighted Average Remaining Contractual Terms (Years)		Aggregate Intrinsic Value (In thousands)
Class A
Outstanding at December 31, 2014		1,324,520		$	11.07
Granted		81,306		$	13.17
Exercised		(25,983	)	$	6.30			$	178
Forfeited		(56,105	)	$	13.12
Outstanding at March 31, 2015		1,323,738		$	11.21		6.22	$	4,740
Exercisable at March 31, 2015		879,990		$	10.24		5.25	$	4,019

Class B
Outstanding at December 31, 2014		213,470		$	24.32
Granted		13,551		$	35.48
Exercised		(4,330	)	$	14.82			$	89
Forfeited		(9,018	)	$	27.61
Outstanding at March 31, 2015		213,673		$	25.09		6.27	$	1,821
Exercisable at March 31, 2015		140,663		$	20.89		5.30	$	1,517

The following table summarizes information regarding unvested stock granted to associates under the 2006 Equity Incentive Plan for the three months ended March 31, 2015:

	Class A Shares Outstanding			Class A Weighted Average Grant Date Fair Value Per Share		Class B Shares Outstanding			Class B Weighted Average Grant Date Fair Value Per Share
Outstanding at December 31, 2014		110,647		$	11.10		18,441		$	36.42
Granted		52,660		$	13.17		8,776		$	35.48
Vested		--			--		--			--
Forfeited		(16,249	)	$	5.39		(2,708	)	$	32.31
Outstanding at March 31, 2015		147,058		$	12.47		24,509		$	36.54

As of March 31, 2015, the total unrecognized compensation cost related to unvested stock awards was approximately $2.3 million and is expected to be recognized over a weighted average period of 4.55 years.