Stock-Based Compensation

6 Months Ended

Jun. 30, 2017

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

Note 6 – 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 and six months ended June 30, 2017 and 2016:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2017		2016		2017		2016
Stock options	$	244	$	216	$	471		417
Nonvested stock awards and restricted stock units		795		745		1,597		1,593
Employee stock purchase plan		21		20		44		43
Non-elective and elective 401(k) matching contribution in stock		—		587		64		1,276
Director stock ownership plan		32		57		69		94
Total stock-based compensation expense	$	1,092	$	1,625	$	2,245	$	3,423

During the first quarter of 2017, the Company began matching non-elective and elective 401(k) contributions in cash rather than stock. The Company’s estimated taxes payable as of June 30, 2016 was sufficient to fully recognize $0.1 million of excess tax benefits related to stock option exercises as cash inflows from financing activities in its Condensed Consolidated Statements of Cash Flows, for the six months ended June 30, 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 options is amortized on a straight-line basis over the vesting period. As of June 30, 2017, unrecognized compensation expense related to options granted was $1.7 million, to be recognized over a weighted average remaining period of 2.1 years. There were no stock options granted in the second quarter of 2017.

During the first six months of 2017, the Company granted 17,315 nonvested restricted shares and 1,332 nonvested restricted stock units under its LTIP plan 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 June 30, 2017, unrecognized compensation expense related to the nonvested shares was $3.4 million, to be recognized over a weighted average remaining period of 1.8 years, and unrecognized compensation expense related to nonvested restricted stock units was $0.2 million, to be recognized over a weighted average remaining period of 2.1 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.

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