Share-Based Compensation

3 Months Ended

Mar. 31, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

MRV records share-based compensation expense at fair value. The following table summarizes the impact on MRV's results of operations of recording share-based compensation for the three months ended March 31, 2015, and 2014 (in thousands):



	2015		2014
Cost of goods sold	$	30	$	20
Product development and engineering	49		23
Selling, general and administrative	133		104
Total share-based compensation expense (1)	$	212	$	147


(1)	Income tax benefits realized from stock option exercises and similar awards were immaterial in both periods.

No stock options or restricted shares were granted during the three months ended March 31, 2015 and 2014. As of March 31, 2015, the total unrecognized share-based compensation balance for unvested options, net of expected forfeitures, was $1.0 million, which is expected to be amortized over a weighted-average period of 1.7 years.

Valuation Assumptions

MRV uses the Black-Scholes option pricing model to estimate the fair value of stock option awards or related modifications. The Black-Scholes model requires the use of subjective and complex assumptions including the option's expected life and the underlying stock price volatility. MRV bases volatility on the Company's historical quoted prices and peer company data. There were no options modified during the three months ended March 31, 2015 and 2014.

- 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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