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. As described in Note

10,

the Company completed a recapitalization in

April

which settled all existing outstanding class B share-based awards, resulted in the elimination of the existing class B common stock and reclassified class A common stock to Common Stock.

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 the Company's former class A common stock and

300,000

shares of the Company's former 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 the Company's former class A common stock and

500,000

shares of the Company's former 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 through

2017,

options to purchase

36,000

shares of the Company's former class A common stock and

6,000

shares of the Company's former class B common stock were 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 former class A common stock and

300,000

shares of former 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

74,516

shares of the Company’s former class A common stock during the

three

-month period ended

March 31, 2018.

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:

	2018			2017
	Class A			Class A			Class B
Expected dividend yield at date of grant		2.65	%		2.87	%		7.99	%
Expected stock price volatility		32.24	%		32.20	%		27.18	%
Risk-free interest rate		2.39	%		2.33	%		2.33	%
Expected life of options (in years)		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, 2018:

	Number of Options			Weighted Average Exercise Price		Weighted Average Remaining Contractual Terms (Years)		Aggregate Intrinsic Value (In thousands)
Class A
Outstanding at December 31, 2017		1,746,634		$	13.88
Granted		74,516		$	36.80
Exercised		(74,769	)	$	7.67			$	2,014
Forfeited		--		$	--
Outstanding at March 31, 2018		1,746,381		$	15.13		5.53	$	25,227
Exercisable at March 31, 2018		1,230,618		$	12.47		4.31	$	20,646
Class B
Outstanding at December 31, 2017		276,716		$	31.78
Granted		--		$	--
Exercised		(9,296	)	$	17.63			$	356
Forfeited		--		$	--
Outstanding at March 31, 2018		267,420		$	32.27		5.46	$	4,696
Exercisable at March 31, 2018		194,825		$	29.65		4.41	$	3,931

As of

March 31, 2018

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

$1.6

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

3.70

years. Total unrecognized compensation cost related to non-vested class B stock option awards of

$119,000

will be recognized in the

second

quarter of

2018

as a result of the accelerated vesting and settlement of the awards in

April 2018

in connection with the Recapitalization described in Note

10.

The following table summarizes information for the

three

months ended

March 31, 2018,

regarding non-vested stock granted to associates under the

2001

and

2006

Equity Incentive Plans:

	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, 2017		81,667	$	13.80		13,611	$	36.65
Granted		6,793		36.80		--		--
Vested		--		--		--		--
Forfeited		--	$	--		--	$	--
Outstanding at March 31, 2018		88,460	$	15.56		13,611	$	36.65

As of

March 31, 2018

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

$740,000

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

2.91

years. Total unrecognized compensation cost related to non-vested class B stock awards of approximately

$222,000

will be recognized in the

second

quarter of

2018

as a result of the accelerated vesting and settlement of the awards in

April 2018

in connection with the Recapitalization described in Note

10.