XML 121 R24.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Stock Options
 12 Months Ended
Dec. 31, 2019
Share-based Payment Arrangement [Abstract]  
STOCK OPTIONS STOCK OPTIONS
 
Incentive Stock Option Plan
 
On May 7, 2015, the stockholders of the Company approved the 2015 Incentive Stock Option Plan (“2015 ISO Plan”) and the Company reserved 400,000 shares of common stock for options to be issued under the 2015 ISO Plan. Each option becomes vested and exercisable for up to 20% of the total optioned shares one year following the grant of the option and for an additional 20% of the total optioned shares after each succeeding year until the option is fully exercisable at the end of the fifth year.

We also maintain other incentive option plans that have expired, under which previously granted awards remain outstanding. No additional grants may be awarded under these plans.
Following is a summary of activity in the Incentive Stock Option Plans for the periods indicated:
 
 201920182017
 Shares
  Exercise
   Price*
Shares
  Exercise
   Price*
Shares
  Exercise
   Price*
Options outstanding at beginning of year140,170  $49.78  172,875  $43.91  220,820  $37.39  
Granted12,150  105.56  9,500  92.50  10,750  83.99  
Exercised(28,100) 38.93  (41,205) 34.89  (54,945) 24.83  
Canceled(4,500) 58.57  (1,000) 54.49  (3,750) 54.57  
Options outstanding at end of year119,720  57.65  140,170  49.78  172,875  43.91  
Options exercisable at end of year85,070  $47.10  96,320  $41.56  111,875  $36.44  
Options available for grant at end of year327,250   336,450   344,950   
*Weighted Averages
 
 Options outstanding and exercisable at December 31, 2019 were as follows:
 
Qualified Stock OptionsOptions OutstandingOptions Exercisable
 
 Shares
Remaining Contractual Life (yrs)*Exercise Price*SharesExercise     Price*
Range of Exercise Price     
$26.45 - $42.70
39,820  2.57$35.89  39,820  $35.89  
$49.44 - $83.99
59,800  5.60$57.89  43,600  $55.62  
$92.50 - $105.56
20,100  8.94$100.07  1,650  $92.50  
Total119,720    85,070   
*Weighted Averages
 
The weighted-average grant-date fair values of options granted during 2019, 2018, and 2017 were $39.85, $38.77 and $36.00, respectively. Stock option expense was $451,000, $482,000 and $597,000 for years ending 2019, 2018, and 2017, respectively. As of December 31, 2019, there was $755,000 of total unrecognized compensation cost related to non-vested share-based compensation arrangements granted under the plans. That cost is expected to be recognized over a period of five years.

Equity Incentive Plan
 
On May 2, 2019, the stockholders of the Company approved the 2019 Equity Incentive Plan and the Company reserved 500,000 shares of common stock for issuance of equity awards including the issuance of non-qualified options for the purchase of shares of our common stock which may be granted to Company officers and non-employee directors. Options become vested and exercisable for up to 20% of the total optioned shares one year following the grant of the option and for an additional 20% of the total optioned shares after each succeeding year until the option is fully exercisable at the end of the fifth year.
 
2019 (1)
2018 (2)
2017 (2)
Options available for grant at end of year499,640  146,075  176,294  
1.In 2019, options available are from the 2019 Equity Incentive Plan.
2.In 2018 and 2017, options available are from the 2009 Equity Incentive Plan.

We also maintain other incentive option plans that have expired, under which previously granted awards remain outstanding. No additional grants may be awarded under these plans.
Non-Qualified Options

Following is a summary of activity in the Non-Qualified Stock Option Plans for the periods indicated:
 
 201920182017
 SharesExercise Price*SharesExercise Price*SharesExercise Price*
Options outstanding at beginning of year40,200  $42.99  67,000  $42.43  112,400  $34.48  
Granted—  —  —  —  —  —  
Exercised(34,900) 42.40  (26,800) 41.61  (45,400) 22.73  
Canceled—  —  —  —  —  —  
Options outstanding at end of year5,300  46.87  40,200  42.99  67,000  42.43  
Options exercisable at end of year5,300  $46.87  34,400  $41.21  50,400  $39.86  
*Weighted Averages
 
Options outstanding and exercisable as of December 31, 2019 were as follows:
Non-Qualified Stock OptionsOptions OutstandingOptions Exercisable
 Shares   Remaining Contractual Life (yrs)*Exercise Price*SharesExercise Price*
Range of Exercise Price     
 $26.45 - $42.70
1,300  1.3626.45  1,300  26.45  
 $49.44 - $83.99
4,000  4.37$53.51  4,000  $53.51  
Total5,300    5,300   
*Weighted Averages

There were no options granted in 2017, 2018 or 2019. Stock option expense was $8,000, $22,000 and $22,000 for years ending 2019, 2018, and 2017, respectively. As of December 31, 2019, there was zero unrecognized compensation cost related to non-vested share-based compensation arrangements granted under the plans. That cost is expected to be recognized over a period of five years.

During 2019, 2018, and 2017, 34,900, 26,800, and 45,400 non-qualified options were exercised, respectively, $1,480,000, $1,115,000, and $1,032,000 of cash receipts were received, respectively.

Restricted Stock Awards/Units
 
Following is a summary of activity in the Restricted Stock Awards for the periods indicated:
  
 201920182017
 SharesGrant-Date Fair Value*SharesGrant-Date Fair Value*SharesGrant-Date Fair Value*
Awards outstanding at beginning of year75,636  $81.39  63,052  $70.08  45,621  $54.58  
Granted36,060  105.69  35,300  92.50  33,620  84.34  
Exercised(32,466) 69.94  (22,266) 66.91  (16,189) 56.03  
Canceled(525) 99.96  (450) 83.99  —  —  
Awards outstanding at end of year78,705  94.34  75,636  81.39  63,052  70.08  
*Weighted Averages

Restricted stock awards vest 25% after one year following the award date and for an additional 25% of total awarded shares each succeeding year until fully vested. The weighted-average remaining contractual life in years
for 2019, 2018, and 2017 was 2.48, 2.53 and 2.69, respectively. Compensation expense was $2,810,000, $1,946,000 and $1,250,000 for years ending 2019, 2018, and 2017, respectively. As of December 31, 2019, there was $5,775,000 of total unrecognized compensation cost related to non-vested share-based compensation arrangements granted under the plans. That cost is expected to be recognized over a period of four years.