11.	EQUITY INSTRUMENTS

Equity Incentive Plans

The Company has three equity incentive plans: the 1999 Equity Incentive Plan, the 2000 Equity Incentive Plan and the Second Amended and Restated 2008 Long-Term Incentive Plan (collectively, the “Equity Incentive Plans”). The Second Amended and Restated 2008 Long-Term Incentive Plan is currently the only plan under which new awards may be granted. Under that plan, a variety of equity instruments can be granted to key employees and directors including incentive and nonqualified stock options to purchase shares of the Company’s common stock, restricted stock, restricted stock units or shares of common stock. The 1999 Equity Incentive Plan, the 2000 Equity Incentive Plan and the Second Amended and Restated 2008 Long-Term Incentive Plan authorize up to 1,000, 5,600 and 7,400 shares of common stock, respectively, for issuance. At December 31, 2017, the Second Amended and Restated 2008 Long-Term Incentive Plan had 2,898 shares available for grant.

Under each of the plans, the Board’s Compensation Committee determines the term of each award, but no award can be exercisable more than 10 years from the date the award is granted. The stock options issued under the Equity Incentive Plans generally expire seven years from the grant date. The Compensation Committee also determines the vesting provisions of all awards and the exercise price per share of stock options issued under the plans, which is the fair value at date of grant. Awards issued to employees generally vest over terms ranging from two to four years.

The following table summarizes the Company’s stock option activity for 2015, 2016 and 2017:

	Number of Shares			Weighted- Average Exercise Price Per Share		Weighted- Average Remaining Contractual Life (years)		Aggregate Intrinsic Value
Outstanding, January 1, 2015		892		$	9.97
Granted		194			19.82
Exercised		(335	)		9.50
Forfeited/expired		(25	)		16.54
Outstanding, December 31, 2015		726			12.60
Granted		140			20.94
Exercised		(286	)		9.65
Forfeited/expired		(3	)		20.94
Outstanding, December 31, 2016		577			16.04
Granted		0			0
Exercised		(271	)		15.76
Forfeited/expired		0			0
Outstanding, December 31, 2017		306		$	16.28		3.78	$	11,121
Exercisable at December 31, 2017		130		$	12.52		3.02	$	5,230
Vested and expected to vest at December 31, 2017		303		$	16.25		3.78	$	11,029

The Company recorded compensation expense of $884, $1,072 and $647, in the accompanying consolidated statements of operations for 2017, 2016 and 2015, respectively, for stock option awards. No options were granted in 2017. The weighted-average grant date fair value of stock options granted in 2016 and 2015 was $5.99 and $5.18, respectively. The total intrinsic value of stock options exercised in 2017, 2016 and 2015 was $8,660, $5,727 and $5,520, respectively.

The fair value of each stock option was estimated on the date of grant using the Black-Scholes option pricing model and the following weighted average assumptions:

	2016			2015
Expected dividend yield		3.29	%		3.48	%
Expected volatility		43.53	%		40.81	%
Risk-free interest rate		1.62	%		1.55	%
Expected life (in years)		4.50			4.42

In 2017, 2016 and 2015, the Company authorized the issuance of 14, 27 and 22 fully vested shares of common stock, respectively, as compensation to the Board of Directors resulting in compensation expense of $700, $700 and $509, respectively. In addition, in 2017, the Company issued 1 share of common stock to consultants for services resulting in expense of $20. No shares were issued to consultants during 2016 or 2015.

The Company has issued restricted stock to employees generally with vesting terms ranging from two to four years. The fair value is equal to the market price of the Company’s common stock on the date of grant. Expense for restricted stock is amortized ratably over the vesting period. The following table summarizes the restricted stock activity for 2015, 2016 and 2017:

	Number of Shares			Weighted- Average Grant-Date Fair Value		Aggregate Intrinsic Value
Nonvested, January 1, 2015		422		$	13.56
Granted		89			19.72
Vested		(183	)		11.30
Forfeited		(52	)		13.51
Nonvested, December 31, 2015		276			17.05
Granted		84			21.02
Vested		(139	)		12.40
Forfeited		(5	)		19.91
Nonvested, December 31, 2016		216			21.51
Granted		140			35.11
Vested		(120	)		14.93
Forfeited		(4	)		31.23
Nonvested, December 31, 2017		232		$	32.96	$	12,269

Additionally, the Company grants performance-based restricted stock units. The performance-based units have performance conditions and service-based vesting conditions. Each vesting tranche is treated as an individual award and the compensation expense is recognized on a straight-line basis over the requisite service period for each tranche. The requisite service period is a combination of the performance period and the subsequent vesting period based on continued service. The level of achievement of such goals may cause the actual amount of units that ultimately vest to range from 0% to 200% of the original units granted. The Company recognizes expense ratably over the vesting period for performance-based restricted stock units when it is probable that the performance criteria specified will be achieved. The fair value is equal to the market price of the Company’s common stock on the date of grant.

The following table summarizes the restricted stock unit activity for 2015, 2016 and 2017:

	Number of Restricted Stock Units			Weighted- Average Grant-Date Fair Value		Aggregate Intrinsic Value
Nonvested, January 1, 2015		366		$	9.81
Granted		123			19.28
Performance factor adjustment		62			12.48
Vested		(237	)		8.64
Forfeited		(1	)		16.67
Nonvested, December 31, 2015		313			14.92
Granted		161			26.59
Vested		(190	)		12.54
Forfeited		(3	)		20.39
Nonvested, December 31, 2016		281			23.18
Granted		73			35.75
Performance factor adjustment		34			17.56
Vested		(155	)		18.92
Forfeited		(1	)		20.52
Nonvested, December 31, 2017		232		$	29.20	$	12,175

The Company recorded compensation expense of $9,319, $5,198 and $4,312 in the accompanying consolidated statements of operations for 2017, 2016 and 2015, respectively, in connection with the issuance of restricted stock and restricted stock units. As of December 31, 2017, the Company expects 228 shares of restricted stock and 227 restricted stock units to vest.

As of December 31, 2017, there was $7,664 of total unrecognized compensation expense related to unvested share-based compensation arrangements, which is expected to be recognized over a weighted-average period of 1 year. The total unrecognized compensation expense will be fully charged to expense through the first quarter of 2020.