Stock-Based Compensation

3 Months Ended

Mar. 31, 2016

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

Note 9. Stock-Based Compensation

During the three months ended March 31, 2016 and 2015, approximately $1.0 million and $0.7 million, respectively, of compensation expense was recognized in selling, general and administrative expense for all share-based awards. During the three months ended March 31, 2016, there were 149,665 restricted stock awards and 167,000 option awards to non-executive directors, officers and certain other key employees. Additionally, during the three months ended March 31, 2016, there were 202,330 performance stock units issued to officers and certain key employees. During the three months ended March 31, 2015, there were 67,200 shares of restricted stock granted to non-executive directors, officers and certain other key employees.

The shares of restricted stock granted during the three months ended March 31, 2016, vest pro-rata over three years for officers and certain other key employees and over one year for non-executive directors. During the three months ended March 31, 2016 and 2015, we incurred $0.6 million and $0.5 million, respectively, in expense related to restricted stock. The fair value of the shares issued was determined by using the grant date closing price of our common stock.

The performance stock units granted during the three month period ended March 31, 2016 will be satisfied in the form of shares of common stock during 2019 depending on meeting certain performance and/or market conditions. We are recognizing the compensation expense over the three year period in which the performance and market conditions are measured. During the three months ended March 31, 2016 and 2015, we incurred $0.2 million and $0, respectively, in expense related to performance stock units. The fair value of the performance share units issued was determined by using the grant date closing price of our common stock for the units with a performance condition and a Monte Carlo valuation model for the units that have a market condition.

We incurred $0.2 million and $0.3 million of stock option expense in the three months ended March 31, 2016 and 2015, respectively. The fair value of our options cannot be determined by market value, because our options are not traded in an open market. Accordingly, we utilized the Black Scholes financial pricing model to estimate the fair value.

The following table provides a reconciliation of option activity for the three months ended March 31, 2016:


Options	Shares (000)			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term		Aggregate Intrinsic Value
Outstanding at January 1, 2016		1,034		$	12.09
Granted		167		$	11.31
Exercised		—		$	—
Forfeited or expired		(10	)	$	17.98

Outstanding at March 31, 2016		1,191		$	11.93		6.2	$	3,312	(1)


Exercisable at March 31, 2016		963		$	11.35		5.3	$	2,916	(1)

⁽¹⁾	The intrinsic value is the amount by which the market price of our stock was greater than the exercise price of any individual option grant at March 31, 2016.