Stock-based Compensation

3 Months Ended

Mar. 31, 2015

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

Stock-Based Compensation

Stock-based Compensation

The following table presents the number of options granted to purchase shares of the Company’s stock and the respective ranges of exercise prices per share and the weighted-average fair value of those granted options:

	Three Months Ended March 31,
	2015		2014
Options granted	133,279		116,990
Range of exercise prices, per share	$25.43 to $26.97		$19.55 to $21.57
Weighted-average fair value, per option	$	8.19	$	7.72

The fair value of each option grant was established at the date of the grant using the Black-Scholes option pricing model, with the following assumptions:

	Three Months Ended March 31,
	2015		2014
Weighted-average risk-free interest rate	1.8	%	2.0	%
Expected dividend yield	1.1	%	—	%
Weighted-average volatility of Company's common stock	32.2	%	34.0	%
Weighted-average assumed forfeiture rate	9.0	%	10.3	%
Weighted-average expected term of options, in years	7.5		7.2
Options vesting annually	25.0	%	25.0	%

The following table details the Company's stock-based compensation expense and related tax benefit associated with this expense:

	Three Months Ended March 31,
(in thousands)	2015		2014
Stock-based compensation expense	$	61	$	51
Tax benefit associated with compensation expense	64		44

During the first three months of 2015 and 2014 the Company reversed $253,000 and $238,000, respectively, of previously recognized stock-based compensation expense due to differences between actual and estimated forfeiture rates of stock options granted during the first quarters of 2011 and 2010, respectively, primarily related to incentive stock options (ISOs), for which the Company generally does not receive a tax deduction on employee exercise of options.