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 provided 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

shares of class A common stock and

300,000

shares of class B common stock. Stock options granted could have been either nonqualified or incentive stock options. Stock options vest over

one

five

years following the date of grant and option terms are generally

five

ten

years following the date of grant.

The Company

’s

2004

Non-Employee Director Stock Plan, as amended (the

“2004

Director Plan”), is a nonqualified plan that provides for the granting of options with respect to

3,000,000

shares of class A common stock and

500,000

shares of class B 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

shares of class A common stock and

6,000

shares of class B common stock are granted to directors that are 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

shares of class A common stock and

300,000

shares of class B 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

ten

years following the date of grant.

The Company granted options to purchase

119,917

shares of the Company’s class A common stock and

19,986

shares of the class B common stock during the

three

-month period ended

March

31,

2017.

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:

	201 7						201 6
	Class A			Class B			Class A			Class B
Expected dividend yield at date of grant		2.87	%		7.99	%		3.02	%		8.12	%
Expected stock price volatility		32.20	%		27.18	%		34.61	%		31.77	%
Risk-free interest rate		2.33	%		2.33	%		2.12	%		2.12	%
Expected life of options (in years)		8			8			8			8

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,

2017:

	Number of Options			Weighted Average Exercise Price		Weighted Average Remaining Contractual Terms (Years)		Aggregate Intrinsic Value (In thousands)
Class A
Outstanding at December 31, 201 6		1,705,483		$	12.31
Granted		119,917		$	18.80
Exercised		(97,068	)	$	13.10			$	590
Forfeit ed		--			--
Outstanding at March 31, 2017		1,728,332		$	12.72		6.00	$	12,064
Exercisable at March 31, 2017		1,195,077		$	11.49		4.76	$	9,807
Class B
Outstanding at December 31, 2016		250,493		$	29.70
Granted		19,986		$	40.54
Exercised		(12,000	)	$	28.41			$	142
Forfeited		--			--
Outstanding at March 31, 2017		258,479		$	30.60		6.38	$	2,402
Exercisable at March 31, 2017		170,550		$	27.52		5.14	$	2,140

As of

March

31,

2017,

the total unrecognized compensation cost related to non-vested stock option awards was approximately

$1.2

million and

$179,000

for class A and class B common shares, respectively, which is expected to be recognized over a weighted average period of

3.86

years and

3.57

years for class A and class B common stock shares, respectively.

The following table summarizes information regarding non-

vested stock granted to associates under the

2001

and

2006

Equity Incentive Plan for the

three

months ended

March

31,

2017:

	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, 2016		174,487	$	13.93		29,081	$	37.21
Granted		--		--		--		--
Vested		--		--		--		--
Forfeited		--		--		--		--
Outstanding at March 31, 2017		174,487	$	13.93		29,081	$	37.21

As of

March

31,

2017,

the total unrecognized compensation cost related to non-vested stock awards was approximately

$1.6

million and is expected to be recognized over a weighted average period of

2.88

years.