Stock-Based Compensation

3 Months Ended

Mar. 31, 2012

Share Based Compensation [Abstract]

Disclosure Of Compensation Related Costs Share Based Payments [Text Block]

Note 6 – Stock-Based Compensation

The Company recognized share based compensation expense in selling, general and administrative expenses in its Condensed Consolidated Statement of Income as follows:

	March 31,
	2012		2011
Stock options	$	128	$	105
Nonvested stock awards		380		312
Employee stock purchase plan		11		12
Non-elective and elective 401(k) matching contribution in stock		652		407
Director stock ownership plan		15		32
Total share-based compensation expense	$	1,186	$	868

Based on historical experience, the Company has assumed a forfeiture rate of 13% on the nonvested stock. The Company will record additional expense if the actual forfeiture rate is lower than estimated, and will record a recovery of prior expense if the actual forfeiture is higher than estimated.

The Company has a long-term incentive program (“LTIP”) for key employees which provides for the granting of options to purchase stock at prices not less than market value on the date of the grant. Most options become exercisable between one and three years after the date of the grant for a period of time determined by the Company not to exceed seven years from the date of grant. Common stock awards issued under the LTIP program are subject only to time vesting over a three to five-year period. In addition, as part of the Company's Global Annual Incentive Plan (“GAIP”), nonvested shares may be issued to key employees, which generally vest over a two to five-year period.

As of March 31, 2012 and March 31, 2011, the Company recorded $1,252 and $78, respectively, of excess tax benefits in capital in excess of par value on its Condensed Consolidated Balance Sheets, related to stock option exercises. Based on estimated taxes payable, the Company recognized $546 and $78 of these benefits as cash inflows from financing activities in its Condensed Consolidated Statement of Cash Flows, which represented the Company's estimate of cash savings through March 31, 2012 and March 31, 2011, respectively.

Stock option activity under all plans is as follows:

					Weighted
					Average
			Weighted Average		Remaining
		Number of	Exercise Price per		Contractual
		Shares	Share		Term (years)
Balance at December 31, 2011		253,342	$	16.43
	Options granted	37,965		38.13
	Options exercised	(34,380)		6.93
	Options forfeited	0		0.00
Balance at March 31, 2012		256,927	$	20.91		4.9
Exercisable at March 31, 2012		160,554	$	14.76		4.3

As of March 31, 2012, the total intrinsic value of options outstanding was approximately $4,750, and the total intrinsic value of exercisable options was $3,955. Intrinsic value is calculated as the difference between the current market price of the underlying security and the strike price of a related option.

A summary of the Company's outstanding stock options at March 31, 2012 is as follows: 

						Weighted	Weighted		Number	Weighted
					Number	Average	Average		Exercisable	Average
Range of					Outstanding	Contractual	Exercise		at	Exercise
Exercise Prices					at 3/31/2012	Life	Price		3/31/2012	Price
$	3.81	-	$	7.63	74,646	3.9	$	6.93	74,646	$	6.93
$	7.64	-	$	15.25	0	0		0	0		0
$	15.26	-	$	19.07	93,988	4.8		18.82	60,134		18.82
$	19.08	-	$	22.88	13,493	2.8		19.45	13,493		19.45
$	22.89	-	$	34.32	0	0		0	0		0
$	34.33	-	$	38.13	74,800	6.4		37.76	12,281		37.37
					256,927	4.9		20.91	160,554		14.76

As of March 31, 2012, unrecognized compensation expense related to options granted during 2010 was $179, for options granted during 2011 was $319 and for options granted in 2012 was $616.

During the first quarter of 2012, the Company granted 37,965 stock options under the Company's LTIP plan that are subject only to time vesting over a three-year period. For the purposes of determining the fair value of stock option awards, the Company uses the Black-Scholes option pricing model and the assumptions set forth in the table below:

	2012
Dividend Yield	3.09	%
Expected Volatility	69.90	%
Risk-free interest rate	0.61	%
Expected term (years)	4.0

Approximately $14 of expense was recorded on these options during the first three months of 2012. The fair value of these awards is amortized on a straight-line basis over the vesting period of the awards.

Activity of shares granted under the Company's LTIP plan is shown below:

		Weighted
		Average Grant
	Number of	Date Fair Value
	Shares	(per share)
Nonvested awards, December 31, 2011	169,863	$	20.66
Granted	27,340	$	38.13
Vested	(68,741)	$	8.01
Forfeited	0	$	0.00
Nonvested awards, March 31, 2012	128,462	$	31.14

The fair value of the nonvested stock is based on the trading price of the Company's common stock on the date of grant. The Company adjusts the grant date fair value for expected forfeitures based on historical experience for similar awards. As of March 31, 2012, unrecognized compensation expense related to these awards was $2,203 to be recognized over a weighted average remaining period of 2.28years.

During the first quarter of 2012, the Company granted restricted stock units under the Company's LTIP plan.Activity of restricted stock units granted is shown below:

		Weighted
		Average Grant
	Number of	Date Fair Value
	units	(per unit)
Nonvested awards, December 31, 2011	0	$	0.00
Granted	2,100	$	38.13
Vested	0	$	0.00
Forfeited	0	$	0.00
Nonvested awards, March 31, 2012	2,100	$	38.13

The fair value of the nonvested restricted stock units is based on the trading price of the Company's common stock on the date of grant. The Company adjusts the fair value for expected forfeitures based on historical experience for similar awards. As of March 31, 2012, unrecognized compensation expense related to these awards was $68 to be recognized over a weighted average remaining period of 3.0 years.

Activity of shares granted under the Company's GAIP plan is shown below:

		Weighted
		Average Grant
	Number of	Date Fair Value
	Shares	(per share)
Nonvested awards, December 31, 2011	62,250	$	7.72
Granted	0	$	0.00
Vested	(59,850)	$	7.72
Forfeited	(2,400)	$	7.72
Nonvested awards, March 31, 2012	0	$	0.00

As of March 31, 2012,these shares were fully vested and all related compensation expense was realized.

Employee Stock Purchase Plan

In 2000, the Board adopted an Employee Stock Purchase Plan (“ESPP”) whereby employees may purchase Company stock through a payroll deduction plan. Purchases are made from the plan and credited to each participant's account at the end of each month, the “Investment Date.” The purchase price of the stock is 85% of the fair market value on the Investment Date. The plan is compensatory and the 15% discount is expensed on the Investment Date. All employees, including officers, are eligible to participate in this plan. A participant may withdraw all uninvested payment balances credited to a participant's account at any time. An employee whose stock ownership of the Company exceeds five percent of the outstanding common stock is not eligible to participate in this plan.

2003 Director Stock Ownership Plan

In March 2003, the Company's Board of Directors approved a stock ownership plan for each member of the Company's Board to encourage the Directors to increase their investment in the Company. The Plan was effective on the date it was approved and remains in effect for a term of ten years or until it is earlier terminated by the Board. The maximum number of shares of Common Stock which may be issued under the Plan is 75,000, subject to certain conditions that the Compensation/Management Development Committee (the “Committee”) may elect to adjust the number of shares. As of March 31, 2012, the Committee has not made any elections to adjust the shares under this plan. Each Director is eligible to receive an annual retainer for services rendered as a member of the Board of Directors. Currently, each Director who owns less than 7,500 shares of Company Common Stock is required to receive 75% of the annual retainer in Common Stock and 25% of the annual retainer in cash. Each Director who owns 7,500 or more shares of Company Common Stock may elect to receive payment of a percentage (up to 100%) of the annual retainer in shares of common stock. Currently, the annual retainer is $40. The number of shares issued in payment of the fees is calculated based on an amount equal to the average of the closing prices per share of Common Stock as reported on the composite tape of the New York Stock Exchange for the two trading days immediately preceding the retainer payment date. The retainer payment date is June 1.