Share-Based Compensation

3 Months Ended

Mar. 31, 2018

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

Note 7 – Share-Based Compensation

The Company recognized the following share-based compensation expense in SG&A in its Condensed Consolidated Statements of Income for the three months ended March 31, 2018 and 2017:

	Three Months Ended
	March 31,
	2018		2017
Stock options	$	252	$	227
Nonvested stock awards and restricted stock units		775		802
Employee stock purchase plan		22		23
Non-elective and elective 401(k) matching contribution in stock		—		64
Director stock ownership plan		34		37
Total share-based compensation expense	$	1,083	$	1,153

During the first quarter of 2018, 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	35,842
Dividend yield	1.37	%
Expected volatility	24.73	%
Risk-free interest rate	2.54	%
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, 2018, unrecognized compensation expense related to stock options granted was $2.1 million, to be recognized over a weighted average remaining period of 2.3 years.

During the first quarter of 2018, the Company granted 12,807 nonvested restricted shares and 1,480 nonvested restricted stock units under its LTIP that are generally 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, 2018, unrecognized compensation expense related to the nonvested shares was $3.2 million, to be recognized over a weighted average remaining period of 2.2 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 2.4 years.