(6)	STOCK AWARD PLANS

The Company has share-based compensation plans which are described below. The compensation cost that has been charged against earnings for the Company’s stock award plans and the income tax benefit recognized in the statement of earnings for stock awards for the three months and nine months ended September 30, 2016 and 2015 were as follows (in thousands):

	Three months ended September 30,						Nine months ended September 30,
	2016			2015			2016			2015
Compensation cost		$	3,296		$	3,127		$	8,841		$	8,378
Income tax benefit		$	1,236		$	1,161		$	3,315		$	3,125

The Company has an employee stock award plan for selected officers and other key employees which provides for the issuance of stock options, restricted stock and performance awards. The exercise price for each option equals the fair market value per share of the Company’s common stock on the date of grant. Substantially all stock options outstanding under the plan have terms of seven years and vest ratably over three years. No performance awards payable in stock have been awarded under the plan. At September 30, 2016, 1,987,792 shares were available for future grants under the employee plan and no outstanding stock options under the employee plan were issued with stock appreciation rights.

The following is a summary of the stock option activity under the employee plan described above for the nine months ended September 30, 2016:

	Outstanding Non- Qualified or Nonincentive Stock Awards			Weighted Average Exercise Price
Outstanding at December 31, 2015		430,432		$	71.01
Granted		186,706		$	53.50
Forfeited		(16,017	)	$	80.17
Outstanding at September 30, 2016		601,121		$	65.33

The following table summarizes information about the Company’s outstanding and exercisable stock options under the employee plan at September 30, 2016:

		Options Outstanding								Options Exercisable
Range of Exercise Prices		Number Outstanding		Weighted Average Remaining Contractual Life in Years		Weighted Average Exercise Price			Aggregate Intrinsic Value	Number Exercisable		Weighted Average Exercise Price			Aggregate Intrinsic Value
$	31.35 - $36.35		16,910		0.4	$	32.82				16,910	$	32.82
$	46.74 - $51.23		212,335		5.0	$	50.03				56,629	$	46.74
$	64.89 - $74.99		302,735		4.3	$	70.29				202,309	$	69.51
$	93.64 - $96.85		33,987		4.3	$	94.31				22,658	$	94.31
$	101.46 -$104.37		35,154		4.4	$	102.60				23,436	$	102.60
$	31.35 -$104.37		601,121		4.5	$	65.33	$	3,071,000		321,942	$	67.73	$	1,369,000

The following is a summary of the restricted stock award activity under the employee plan described above for the nine months ended September 30, 2016:

	Unvested Restricted Stock Award Shares			Weighted Average Grant Date Fair Value Per Share
Nonvested balance at December 31, 2015		311,727		$	75.73
Granted		190,150		$	53.55
Vested		(104,939	)	$	69.95
Forfeited		(19,393	)	$	76.04
Nonvested balance at September 30, 2016		377,545		$	66.15

The Company has a stock award plan for nonemployee directors of the Company which provides for the issuance of stock options and restricted stock. The director plan provides for automatic grants of restricted stock to nonemployee directors after each annual meeting of stockholders. In addition, the director plan allows for the issuance of stock options or restricted stock in lieu of cash for all or part of the annual director fee at the option of the director. The exercise prices for all options granted under the plan are equal to the fair market value per share of the Company’s common stock on the date of grant. The terms of the options are ten years. The restricted stock issued after each annual meeting of stockholders vests six months after the date of grant. Options granted and restricted stock issued in lieu of cash director fees vest in equal quarterly increments during the year to which they relate. At September 30, 2016, 522,457 shares were available for future grants under the director plan. The director stock award plan is intended as an incentive to attract and retain qualified independent directors.

The following is a summary of the stock option activity under the director plan described above for the nine months ended September 30, 2016:

	Outstanding Non- Qualified or Nonincentive Stock Options			Weighted Average Exercise Price
Outstanding at December 31, 2015		220,429		$	64.37
Exercised		(9,000	)	$	35.72
Forfeited		(6,000	)	$	99.52
Outstanding at September 30, 2016		205,429		$	64.60

The following table summarizes information about the Company’s outstanding and exercisable stock options under the director plan at September 30, 2016:

		Options Outstanding								Options Exercisable
Range of Exercise Prices		Number Outstanding		Weighted Average Remaining Contractual Life in Years		Weighted Average Exercise Price			Aggregate Intrinsic Value	Number Exercisable		Weighted Average Exercise Price			Aggregate Intrinsic Value
$	29.60 - $36.82		21,000		1.1	$	32.69				21,000	$	32.69
$	41.24 - $56.45		71,276		2.9	$	52.34				71,276	$	52.34
$	61.89 - $62.48		41,153		5.0	$	62.34				41,153	$	62.34
$	75.17 - $99.52		72,000		6.0	$	87.35				72,000	$	87.35
$	29.60 - $99.52		205,429		4.2	$	64.60	$	1,321,000		205,429	$	64.60	$	1,321,000

The following is a summary of the restricted stock award activity under the director plan described above for the nine months ended September 30, 2016:

	Unvested Restricted Stock Award Shares			Weighted Average Grant Date Fair Value Per Share
Nonvested balance at December 31, 2015		1,791		$	68.73
Granted		23,074		$	64.89
Vested		(2,485	)	$	67.66
Nonvested balance at September 30, 2016		22,380		$	64.89

The total intrinsic value of all stock options exercised under all of the Company’s plans was $266,000 and $2,555,000 for the nine months ended September 30, 2016 and 2015, respectively. The actual tax benefit realized for tax deductions from stock option exercises was $100,000 and $953,000 for the nine months ended September 30, 2016 and 2015, respectively.

The total intrinsic value of all the restricted stock vestings under all of the Company’s plans was $5,587,000 and $9,055,000 for the nine months ended September 30, 2016 and 2015, respectively. The actual tax benefit realized for tax deductions from restricted stock vestings was $2,095,000 and $3,378,000 for the nine months ended September 30, 2016 and 2015, respectively.

As of September 30, 2016, there was $4,080,000 of unrecognized compensation cost related to nonvested stock options and $20,218,000 related to restricted stock. The stock options are expected to be recognized over a weighted average period of approximately 1.7 years and restricted stock over approximately 3.4 years. The total fair value of options vested was $2,495,000 and $2,194,000 during the nine months ended September 30, 2016 and 2015, respectively. The fair value of the restricted stock vested was $5,587,000 and $9,055,000 for the nine months ended September 30, 2016 and 2015, respectively.

The weighted average per share fair value of stock options granted during the nine months ended September 30, 2016 and 2015 was $17.30 and $25.18, respectively. The fair value of the stock options granted during the nine months ended September 30, 2016 and 2015 was $3,231,000 and $2,893,000, respectively. The Company currently uses treasury stock shares for restricted stock grants and stock option exercises. The fair value of each stock option was determined using the Black-Scholes option pricing model. The key input variables used in valuing the options during the nine months ended September 30, 2016 and 2015 were as follows:

	Nine months ended September 30,
	2016		2015
Dividend yield	None		None
Average risk-free interest rate		1.5 %		1.3%
Stock price volatility		30%		33%
Estimated option term	Six years		Six years