Stock-Based Compensation

3 Months Ended

Mar. 31, 2017

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

Note 5 – Stock-Based Compensation

The Company recognized the following stock-based compensation expense in SG&A in its Condensed Consolidated Statements of Income for the three months ended March 31, 2017 and 2016:

	Three Months Ended
	March 31,
	2017		2016
Stock options	$	227	$	201
Nonvested stock awards and restricted stock units		802		848
Employee stock purchase plan		23		23
Non-elective and elective 401(k) matching contribution in stock		64		689
Director stock ownership plan		37		37
Total stock-based compensation expense	$	1,153	$	1,798

The Company’s estimated taxes payable as of March 31, 2016 were sufficient to fully recognize $0.1 million of excess tax benefits related to stock option exercises as a cash inflow from financing activities in its Condensed Consolidated Statement of Cash Flows for the three months ended March 31, 2016.

During the first quarter of 2017, the Company granted stock options under its long-term incentive plan (“LTIP”) 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 used the Black-Scholes option pricing model and the assumptions set forth in the table below:

Number of options granted	42,477
Dividend yield	1.49	%
Expected volatility	25.52	%
Risk-free interest rate	1.67	%
Expected term (years)	4.0

The fair value of these stocks options is amortized on a straight-line basis over the vesting period. As of March 31, 2017, unrecognized compensation expense related to stock options granted was $1.9 million, to be recognized over a weighted average remaining period of 2.3 years.

During the first quarter of 2017, the Company granted 13,697 nonvested restricted shares and 1,332 nonvested restricted stock units under its LTIP that are subject only to time vesting, generally over a three-year period. The fair value of these awards 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 of these awards for expected forfeitures based on historical experience. As of March 31, 2017, unrecognized compensation expense related to the nonvested shares was $3.6 million, to be recognized over a weighted average remaining period of 2.0 years, and unrecognized compensation expense related to nonvested restricted stock units was $0.3 million, to be recognized over a weighted average remaining period of 2.3 years.

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References + Details