XML 32 R21.htm IDEA: XBRL DOCUMENT v3.7.0.1
Stock-Based Compensation
3 Months Ended
Mar. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stock-Based Compensation
Stock-Based Compensation

The Compensation Committee of the Company's Board of Directors is responsible for the administration of the Company's stock incentive plans, which include the 2011 Long Term Incentive Plan, or the "2011 LTIP", which was approved by shareholders in May 2011 and authorized the maximum aggregate number of shares of common stock to be issued at 3,000,000. In general, the Company's 2011 LTIP provides for grants of restricted stock and stock options to be issued with a per-share price equal to the fair market value of a share of common stock on the date of grant.  Option terms are specified at each grant date, but are generally 10 years from the date of issuance.  Options generally vest over a three to five year period.  

The Company applies a 3.2% and a 5.5% forfeiture rate, which gets compounded over the vesting terms of the individual award, to its restricted stock and option grants, respectively, from the 2011 LTIP, based on historical analysis. During the quarter ended March 31, 2017, the Company adopted ASU 2016-09, Improvements to Employee Share-Based Payment Accounting. As part of this adoption the Company was permitted to continue using a forfeiture rate to estimate the number of awards expected to vest or to account for forfeitures as they occur. The Company chose to continue using estimated forfeiture rates on its stock grants, and since this adoption did not change the Company's policy no financial changes occurred as a result of the adoption of this standard as it relates to forfeitures.

In the three months ended March 31, 2017 and 2016, compensation expense related to stock based awards outstanding was $350,000 and $433,000, respectively.

In the three months ended March 31, 2017, 103,855 options were exercised, generating proceeds to the Company of approximately $623,000. In the three months ended March 31, 2016, 3,924 options were exercised, generating proceeds to the Company of approximately $8,000.

At March 31, 2017, total unrecognized compensation expense related to unvested stock and options was approximately $2.4 million, which is expected to be recognized over a period of approximately two years.