Incentive Plans

12 Months Ended

Dec. 31, 2015

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

Incentive Plans

8. Incentive Plans

On March 23, 2006, the Company adopted and on May 1, 2007, the stockholders approved the 2006 Stock Plan (the “2006 Plan”) to provide incentives for certain key employees and directors through awards of stock options and restricted stock awards and units. The 2006 Plan provides for incentives to be granted at the fair market value of the Company’s common stock at the date of grant and options may be either nonqualified stock options or incentive stock options as defined by Section 422 of the Code. Under the 2006 Plan a maximum of 1,800,000 shares may be granted to designated participants. The maximum number of shares available to any one participant in any one calendar year is 500,000.

Stock Option Awards

The Company has granted options to purchase its common stock to employees and directors of the Company under the two stock plans at no less than the fair market value of the underlying stock on the date of grant. These options are granted for a term not exceeding ten years and may be forfeited in the event the employee or director terminates his or her employment or relationship with the Company. Options granted to employees generally vest over three to five years, and options granted to directors generally vest one year after the date of grant. Shares issued to satisfy the exercise of options may be newly issued shares or treasury shares. Both option plans contain anti-dilutive provisions that permit an adjustment of the number of shares of the Company’s common stock represented by each option for any change in capitalization. Compensation cost for options granted is charged to expense on a straight line basis over the term of the option.

The fair value of each option awarded is estimated on the date of grant using a Black-Scholes option-pricing model. Expected volatilities are based on historical volatility of the Company’s stock and other factors. The expected life of options granted represents the period of time that options granted are expected to be outstanding. The risk-free rate for periods within the life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. There were no options granted in 2015 or 2014. 

Vesting dates range from December 20, 2016 to December 31, 2017, and expiration dates range from December 20, 2016 to December 20, 2021. The following summarizes stock option activity and related information:

	2015
	Options (in 000’s)			Weighted Average Exercise Price		Aggregate Intrinsic Value		Weighted Average Remaining Contractual Life (in years)
Outstanding—Beginning of year		602		$	15.50	$	243		4.17
Granted		—			—
Exercised		(4	)		2.67
Forfeited		(105	)		15.55
Expired		—			—
Outstanding—End of year		493		$	15.60	$	—		3.26
Exercisable—End of year		416		$	15.87	$	—		2.76
Weighted average fair value of options granted during 2015	$	—
Weighted average fair value of options granted during 2014	$	—
Weighted average fair value of options granted during 2013	$	—

There was no excess tax benefit for the year ended December 31, 2015. During the years ended December 31, 2014 and 2013, excess tax benefits of $7 and $49, respectively, were reflected in financing cash flows.

 The total intrinsic value of options exercised during the years ended December 31, 2015, 2014 and 2013 was $13, $51 and $366, respectively. There is no intrinsic value of options outstanding and exercisable as of December 31, 2015 as the closing stock price at the end of 2015 creates a negative value.

The total fair value of options vested during the years ended December 31, 2015, 2014 and 2013 was $139, $168 and $271, respectively.

Restricted Stock Awards and Restricted Stock Units

On December 15, 2015, the Company granted 28,090 voting shares of restricted stock to the Company’s President. These shares vest in one third increments on the first, second and third anniversaries of the date of grant as long as the recipient is then employed by the Company. Any dividends declared will be accrued and paid to the recipient when the related shares vest.

The Company also granted 64,500 voting shares of restricted stock under the 2006 Plan to members of management on December 15, 2015. These shares vest in one third increments, on the third, fourth and fifth anniversaries of the date of grant as long as the recipient is then employed by the Company. Any dividends declared will be accrued and paid to the recipient if and when the related shares vest.

Following the Annual Meeting of Stockholders on May 5, 2015, the Company awarded restricted stock units with a value of $50 to each non-employee director who was elected or re-elected, for an aggregate of 38,290 restricted stock units. As a result of the resignation of a non-employee director during the quarter ended September 30, 2015, 5,470 of these restricted stock units were forfeited. Each award of restricted stock units vests at the date of the 2016 Annual Meeting of Stockholders. Each non-employee director is entitled to receive a number of shares of the Company's common stock equal to the number of vested restricted stock units, together with dividend equivalents from the date of grant, at such time as the director’s service on the board terminates for any reason.

On May 5, 2015 new members of the management team received a total of 11,000 restricted stock awards. These shares vest in one third increments, on the third, fourth and fifth anniversaries of the date of grant as long as the recipient is then employed by the Company. Any dividends declared will be accrued and paid to the recipient if and when the related shares vest.

Restricted common shares are measured at fair value on the date of grant based on the quoted price of the common stock. Such value is recognized as compensation expense over the corresponding vesting period which ranges from one to five years, based on the number of awards that vest.

The following summarizes restricted stock activity for the year ended December 31, 2015:

	2015
	Awards					Units
	Shares (in 000’s)			Weighted Average Market Value at Grant Date		Shares (in 000’s)			Weighted Average Market Value at Grant Date
Non-vested —Beginning of year		201		$	11.43		27		$	11.93
Granted		104			5.76		38			9.14
Vested		(19	)		11.59		(27	)		11.93
Cancelled/Forfeited		(20	)		11.97		(5	)		9.14
Expired		(32	)		12.45		—			—
Non-vested —End of year		234		$	9.57		33		$	9.14

Total stock-based compensation cost was $886, $868 and $900 for the years ended December 31, 2015, 2014 and 2013, respectively. Total income tax benefit recognized for stock-based compensation arrangements was $337, $332 and $346 for the years ended December 31, 2015, 2014 and 2013, respectively.

As of December 31, 2015, there was $1,616 of total unrecognized compensation cost related to non-vested, share-based compensation arrangements. The cost is expected to be recognized over a weighted average period of approximately 35 months. There were 448,796 shares available for future grants under the 2006 Plan at December 31, 2015.