Stock-Based Compensation

9 Months Ended

Sep. 30, 2014

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

Stock-Based Compensation

5. STOCK-BASED COMPENSATION

On September 30, 2014, the Company had stock options outstanding under its 2000 Stock Option Plan, stock options and stock awards outstanding under its 2006 Incentive Compensation Plan and stock options, stock awards and stock appreciation rights (SARs) outstanding under its 2011 Incentive Compensation Plan.

Compensation (income) expense recognized for all stock options, stock awards and SARs in the consolidated statements of income was as follows:

(In thousands)

Three Months Ended September 30					Nine Months Ended September 30
2014			2013		2014		2013
$	(164	)	$	996	$	606	$	1,420

The decline in stock-based compensation expense for the three- and nine-month periods ended September 30, 2014, compared to the three- and nine-month periods ended September 30, 2013, reflected adjustments to both performance stock awards and SARs. In their third quarter review, management adjusted the profitability estimates on which the compensation expenses for stock awards vesting on December 31, 2015 and 2016 were based, thereby reducing the number of shares expected to vest and the related compensation expense. In addition, due to a decrease in the market value of Company common stock, the fair value of SARs at September 30, 2014, declined, resulting in a reduction of the Company’s SARs liability that led to reversing compensation expense recorded in prior periods.

Unrecognized compensation costs for stock options, stock awards and SARs was as follows:

(In thousands)	September 30, 2014		December 31, 2013
Stock options	$	1,068	$	756
Stock awards		2,316		2,086
SARs		1,174		1,365
Total	$	4,558	$	4,207

The increase in unrecognized compensation costs for stock options, SARs and stock awards reflected the 2014 grants of

	Shares
Stock options		53,175
Stock awards		45,586
SARs		116,843

The unrecognized compensation costs at September 30, 2014, are expected to be recognized over weighted-average periods of 1.2 years, 1.9 years and 1.3 years for stock options, stock awards and SARs, respectively.