Stock Compensation

6 Months Ended

Jun. 30, 2015

9. Stock Compensation

The Company has an equity incentive plan. The Compensation Committee of the Company’s Board of Directors may grant awards under the plan in the form of incentive stock options, non-qualified stock options, stock appreciation rights, restricted stock, restricted stock units and other stock-based awards. The maximum number of shares issuable under the equity incentive plan is 1,400,000 shares. All grants under the equity incentive plan will be issued to acquire shares at the fair value on date of grant.

As of June 30, 2015, all awards were restricted stock units. Activity with respect to outstanding restricted stock units for the six months ended June 30, 2015 and 2014 was as follows:

			Weighted-
			Average
			Grant-Date
	Shares		Fair Value
2015
Nonvested at January 1, 2015	245,752		$	27
Granted	140,909		26
Vested	(107,788	)	28
Forfeited	(100,053	)	25

Nonvested at June 30, 2015	178,820		$	26


2014
Nonvested at January 1, 2014	260,734		$	18
Granted	157,481		31
Vested	(109,399	)	25
Forfeited	(1,534	)	29

Nonvested at June 30, 2014	307,282		$	24

The Company recognized compensation expense of $0.5 million and $0.9 million for the three and six months ended June 30, 2015, respectively. The Company recognized compensation expense of $1.0 million and $2.1 million for the three and six months ended June 30, 2014, respectively. The fair value as of the vesting date for the restricted stock units that vested during the six months ended June 30, 2015 and 2014 was $2.5 million and $2.7 million, respectively. Upon vesting, unit holders have the option to net share-settle to cover the required withholding tax and the remaining amount is converted into an equivalent number of shares of common stock. The total shares withheld were 35,714 and 34,573 for the six months ended June 30, 2015 and 2014, respectively, and were based on the value of the restricted stock units as determined by the Company’s closing stock price on the date of vesting. Total payments for the employees’ tax obligations to the tax authorities amounted to $0.9 million and $1.0 million for the six months ended June 30, 2015 and 2014, respectively. Other than reimbursements for tax withholdings, there was no cash received under all share-based arrangements. In March 2014, the terms of certain restricted stock units were modified which resulted in the restricted stock units vesting as of the date of the modification. The Company recognized the incremental value of $0.6 million as additional expense in the first quarter of 2014.