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Stock-Based Compensation
12 Months Ended
Dec. 31, 2021
Stock-Based Compensation  
Stock-Based Compensation

(6) Stock-Based Compensation

The Company has a long-term incentive plan, the Amended and Restated 2001 Long-Term Incentive Plan (the “2001 Plan”). The 2001 Plan provides for stock options, restricted stock and dollar-denominated cash awards, including performance-based awards. In addition to stock options, restricted stock and cash awards, the 2001 Plan provides for the grant of stock appreciation rights, deferred stock and other stock-based awards to directors, officers, employees and consultants.

The number of shares of common stock that may be subject to outstanding awards granted under the 2001 Plan (determined immediately after the grant of any award) may not exceed 874,589 from the inception of the 2001 Plan. In

addition, no individual may receive awards in any one calendar year of more than 100,000 shares of common stock. Stock options granted under the 2001 Plan expire ten years from the date of grant and generally become exercisable, or vest, immediately. Restricted stock generally vests over periods of one-half to three years. Upon the exercise of stock options, the Company issues common stock from its non-issued authorized or treasury shares that have been reserved for issuance pursuant to the 2001 Plan. At December 31, 2021, the number of shares of common stock remaining available for future grants of stock options, restricted stock or other forms of stock-based compensation under the 2001 Plan was 92,377.

The Company recorded $2,236, $1,915 and $1,524 for stock-based compensation expense related to stock options and shares of restricted stock for 2021, 2020 and 2019, respectively. The amounts included in cost of revenues were $197, $312 and $170 and in selling, general and administrative expense were $2,039, $1,603 and $1,354, for 2021, 2020 and 2019, respectively.

A summary of the Company’s stock option and restricted stock activity and related information for the year ended December 31, 2021 and certain other information for the years ended December 31, 2021, 2020 and 2019 are as follows:

    

    

Weighted-

    

    

    

Weighted-

 

Average

Aggregate

Average

 

Stock

Exercise

Intrinsic

Restricted

Grant-Date

 

    

Options

    

Price

    

Value

    

Stock

    

Fair Value

 

Outstanding (stock options); non-vested (restricted stock) at December 31, 2020

 

46,100

$

77.98

$

1,661

 

18,521

$

103.10

Granted

 

9,900

 

131.24

 

 

18,400

 

130.48

Exercised (stock options); vested (restricted stock)

 

(9,500)

 

69.58

 

647

 

(18,639)

 

112.47

Forfeited

 

 

 

 

(136)

 

99.80

Outstanding (stock options); non-vested (restricted stock) at December 31, 2021

 

46,500

$

91.04

$

1,788

 

18,146

$

121.26

Exercisable at December 31, 2021

 

46,500

$

91.04

$

1,788

 

n/a

 

n/a

    

2021

    

2020

    

2019

 

Weighted-average fair value of stock options granted during the year

$

42.10

$

31.30

$

20.47

Weighted-average remaining contractual life for stock options in years

 

6.85

 

6.74

 

6.64

Total fair value of stock options vested during the year

$

321

$

310

$

203

Total intrinsic value of stock options exercised during the year

$

647

$

1,128

$

57

Total fair value of restricted stock vested during the year

$

2,096

$

1,612

$

1,303

There were 10,000 non-vested stock options at December 31, 2021, and the weighted-average remaining contractual life of the outstanding and exercisable stock options at such date was 6.85 years. The total compensation cost not yet recognized for restricted stock at December 31, 2021 was $1,951, which will be recognized over the weighted average of 1.07 years.

The fair value for the stock options was estimated at the date of grant using a lattice-based option valuation model, with the following weighted-average assumptions for the 2021, 2020 and 2019 grants: risk-free interest rates of 0.86% to 1.26% (weighted average 1.19%) in 2021, 0.37% to 0.53% (weighted average 0.42%) in 2020 and 1.69% to 2.33% (weighted average 1.89%) in 2019; a dividend yield of 0.46% to 0.50% (weighted average 0.49%) in 2021, 0.56%

to 0.80% (weighted average 0.64%) in 2020 and 0.60% to 0.67% (weighted average 0.62%) in 2019; and a volatility factor of .366 to .373 (weighted average .371) in 2021, .346 to .356 (weighted average .354) in 2020 and .244 to .247 (weighted average .245) in 2019, based on the daily per-share closing prices for five years preceding the date of issuance. In addition, the fair value of these options was estimated based on an expected life of five years. The fair value of restricted stock is based on the closing per-share price of the Company’s common stock on the date of grant.