NOTE

15:

STOCK BASED COMPENSATION

The Company’s Board of Directors has adopted various stock compensation plans. The plans provide for the grant of incentive stock options, nonqualified stock options, stock appreciation rights, and bonus stock awards. Pursuant to the plans, shares are reserved for future issuance by the Company upon the exercise of stock options or awarding of bonus shares granted to directors, officers and other key employees.

The table below summarizes the transactions under the Company's active stock compensation plans for the

nine

months ended

September 30, 2017:

	Stock Options Outstanding					Stock Awards Outstanding					Stock Units Outstanding
	Number of Shares (000)			Weighted Average Exercise Price		Number of Shares (000)			Weighted Average Exercise Price		Number of Shares (000)			Weighted Average Exercise Price

Balance, January 1, 2017		473		$	42.85		139		$	40.96		113		$	45.40
Granted		--			--		--			--		185			58.18
Stock Options Exercised		(39	)		32.16		--			--		--			--
Stock Awards/Units Vested		--			--		(34	)		36.45		(124	)		52.71
Forfeited/Expired		(3	)		44.68		(12	)		43.83		(13	)		51.72

Balance, September 30, 2017		431		$	43.82		93		$	42.21		161		$	53.97

Exercisable, September 30, 2017		325		$	43.23

The following table summarizes information about stock options under the plans outstanding at

September 30, 2017:

			Options Outstanding						Options Exercisable
Range of Exercise Prices			Number of Shares		Weighted Average Remaining Contractual Life (Years)		Weighted Average Exercise Price		Number of Shares		Weighted Average Exercise Price
$17.55	-	$21.13		3,950		2.76	$	19.38		3,950	$	19.38
21.29	-	21.29		3,700		5.30		21.29		2,500		21.29
21.51	-	21.51		1,250		2.30		21.51		1,250		21.51
30.31	-	30.31		22,180		0.63		30.31		22,180		30.31
40.57	-	40.57		40,490		7.25		40.57		40,490		40.57
40.72	-	40.72		1,500		7.13		40.72		600		40.72
44.40	-	44.40		49,870		7.25		44.40		37,144		44.40
45.50	-	45.50		246,485		7.62		45.50		193,025		45.50
47.02	-	47.02		58,090		7.79		47.02		20,838		47.02
48.13	-	48.13		3,305		7.96		48.13		2,645		48.13
$17.55	-	$48.13		430,820		7.12	$	43.82		324,622	$	43.23

Total stock-based compensation expense was

$6,486,000

and

$4,204,000

during the

nine

months ended

September 30, 2017

and

2016,

respectively. Stock-based compensation expense is recognized ratably over the requisite service period for all stock-based awards. There was

$407,000

of unrecognized stock-based compensation expense related to stock options at

September 30, 2017.

Unrecognized stock-based compensation expense related to non-vested stock awards was

$15,423,000

September 30, 2017.

At such date, the weighted-average period over which this unrecognized expense is expected to be recognized was

2.0

years.

The intrinsic value of stock options outstanding and stock options exercisable at

September 30, 2017

was

$6,066,000

and

$4,761,000.

Aggregate intrinsic value represents the difference between the Company’s closing stock price on the last trading day of the period, which was

$57.90

as of

September 30, 2017,

and the exercise price multiplied by the number of options outstanding and exercisable at a price below that closing price. The total intrinsic value of stock options exercised during the

nine

months ended

September 30, 2017

and

September 30, 2016,

was

$1,012,000

and

$1,063,000,

respectively.

The fair value of the Company’s employee stock options granted is estimated on the date of grant using the Black-Scholes option-pricing model. This model requires the input of highly subjective assumptions, changes to which can materially affect the fair value estimate. There were

stock options granted during the

nine

months ended

September 30, 2017.

The weighted-average fair value of stock options granted during the

nine

months ended

September 30, 2016

was

$11.64

per share. The Company estimated expected market price volatility and expected term of the options based on historical data and other factors. The weighted-average assumptions used to determine the fair value of options granted are detailed in the table below:

	Nine Months Ended September 30, 2016

Expected dividend yield		1.96	%
Expected stock price volatility		27.34	%
Risk-free interest rate		2.01	%
Expected life of options (in years)		7