Share-Based Compensation

3 Months Ended

Mar. 31, 2016

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, 2016 and 2015 (in thousands):



	Three months ended
	March 31,
	2016		2015
Cost of goods sold	$	42	$	30
Product development and engineering	76		49
Selling, general and administrative	229		127
Total share-based compensation expense (1)	$	347	$	206


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

No stock options or restricted shares were granted during the three months ended March 31, 2016 and 2015.

As of March 31, 2016, the total unrecognized share-based compensation balance for unvested options, net of expected forfeitures, was $1.5 million and is expected to be amortized over a weighted-average period of 1.9 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.