Note 6 - Share-based Compensation |
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Notes to Financial Statements | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | NOTE 6 – Share-Based CompensationIn 2003, the stockholders of the Company approved the 2003 Incentive Stock and Awards Plan (the “2003 Plan”), authorizing the granting of incentive stock options, non-qualified stock options, stock appreciation rights (“SARS”), restricted stock, performance shares and other stock based compensation. This plan expired in May of 2013, at which time, the stockholders of the Company approved the 2013 Incentive Stock and Awards Plan (the “2013 Plan”), authorizing the granting of incentive stock options, non-qualified stock options, SARS, restricted stock, performance shares and other stock based compensation. A total of 5,000,000 shares of common stock (subject to adjustment for expirations and cancellations of options outstanding from the 2003 Plan subsequent to its termination) have been reserved for issuance under the 2013 Plan. All options and SARS under both plans have been or will be granted with exercise prices at least equal to the fair market value of the shares on the date of grant. At March 31, 2017, the Company had 3,777,362 shares of common stock available for grant of share-based compensation under the 2013 Plan.Share-based compensation is recorded in selling and administrative expense in the consolidated statements of comprehensive income. The following table details the share-based compensation expense by plan and the total related tax benefit for the periods presented:
Stock options and SARS The Company grants stock options and stock settled SARS to employees that allow them to purchase shares of the Company’s common stock. Options are also granted to outside members of the Board of Directors of the Company. The Company determines the fair value of stock options and SARS at the date of grant using the Black-Scholes valuation model. All options and SARS vest immediately at the date of grant. Awards generally expire five years after the date of grant with the exception of options granted to outside directors, which expire ten years after the date of grant. The Company issues new shares upon the exercise of stock options and SARS.A summary of stock option transactions during the three months ended March 31, 2017 follows:
At March 31, 2017, options outstanding, all of which were fully vested and exercisable, had an aggregate intrinsic value of $6,234,000. The weighted-average remaining contractual term was 41 months.Options exercised during the three -month period ended March 31, 2017 and 2016 had intrinsic values of $612,000 and $601,000, respectively.The weighted average fair values of the Company’s 90,012 and 109,332 options granted during each of the three month periods ended March 31, 2017 and 2016 was $4.83 and $4.49, respectively.During the three -month periods ended March 31, 2017 and 2016, respectively, the Company received $105,000 and $322,000 in cash from stock option exercises. Additionally, during the three -month period ended March 31, 2017, the Company received 16,500 shares of its common stock as payment of the exercise price in the exercise of stock options for 41,544 shares. There was no three -month period ending March 31, 2016. The tax benefit recognized for these exercises during each of the three -month periods ended March 31, 2017 and 2016 was $13,000 and $25,000, respectively.The following table summarizes information about stock options outstanding as of March 31, 2017.
A summary of stock-settled SARS transactions during the three months ended March 31, 2017 follows:
At March 31, 2017, SARS outstanding, all of which were fully vested and exercisable, had an aggregate intrinsic value of $2,027,000. The weighted-average remaining contractual term was 30 months.There were 59,364 and 36,208 SARS exercised during the three -month periods ended March 31, 2017 and 2016, respectively. SARS exercised during the three -month periods ended March 31, 2017 and 2016 had intrinsic values of $738,000 and $442,000. The tax benefit recognized for these exercises during each of the three -month periods ended March 31, 2017 and 2016 was $210,000 and $157,000, respectively.The weighted average fair values of the company’s 43,988 and 58,108 SARS granted during each of the three -month periods ended March 31, 2017 and 2016 was $4.83 and $4.49, respectively.The following table summarizes information about SARS outstanding as of March 31, 2017:
At March 31, 2017 shares available for grant as awards under the plan were 3,777,362. Options and SARS have never been repriced by the Company in any year.The following table summarizes significant assumptions utilized to determine the fair value of options and SARS.
Restricted Stock The Company has granted restricted stock to directors and certain employees under the terms of the 2013 Plan which vest at a specified future date, generally after three years, or when certain conditions are met. The shares are subject to accelerated vesting under certain circumstances as outlined in the 2013 Plan. Expense for each of these grants is based on the fair value at the date of the grant and is being recognized on a straight-line basis over the respective service period. As of March 31, 2017, the Company had $770,000 of unrecognized compensation cost related to nonvested grants expected to be recognized over the weighted average service period of 2.4 years.A summary of restricted stock transactions during the three months ended March 31, 2017 follows:
Performance Shares The Compensation Committee of the Board of Directors has approved grants of performance shares under the terms of the 2013 Plan. Under the terms of the grants, certain employees received service-based or service-based and performance-based shares. The service-based awards vest after the service period is met, which is generally three to five years. Expense for these grants is based on the fair value on the date of the grant and is being recognized on a straight-line basis over the respective service period. The performance-based shares generally vest after five years if the performance and service targets are met. The Company evaluates the performance conditions associated with these grants each reporting period to determine the expected number of shares to be issued. Based upon this evaluation, expected expenses for these grants are being recognized based on the fair value on the date of the grant on a straight-line basis over the respective service period. The shares are subject to accelerated vesting under certain circumstances as outlined in the 2013 Plan. As of March 31, 2017, the Company had $1,943,000 of unrecognized compensation cost related to nonvested grants expected to be recognized over the weighted average service period of 4.0 years.A summary of performance share transactions during the three months ended March 31, 2017 follows:
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