(5)	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 ended March 31, 2017 and 2016 were as follows (in thousands):

	Three months ended March 31,
		2017		2016
Compensation cost	$	2,693	$	2,584
Income tax benefit	$	881	$	969

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 March 31, 2017, 1,745,801 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 three months ended March 31, 2017:

	Outstanding Non- Qualified or Nonincentive Stock Awards			Weighted Average Exercise Price
Outstanding at December 31, 2016		601,121		$	65.33
Granted		121,908		$	68.50
Exercised		(16,910	)	$	32.82
Outstanding at March 31, 2017		706,119		$	66.66

The following table summarizes information about the Company’s outstanding and exercisable stock options under the employee plan at March 31, 2017:

		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
$	46.74 - $51.23		212,335		4.5	$	50.03				108,531	$	48.89
$	64.89 - $74.99		424,643		4.7	$	69.78				237,022	$	70.31
$	93.64 - $96.85		33,987		3.8	$	94.31				33,987	$	94.31
$	101.46 - $104.37		35,154		3.9	$	102.60				35,154	$	102.60
$	46.74 - $104.37		706,119		4.6	$	66.66	$	5,155,000		414,694	$	69.41	$	2,724,000

The following is a summary of the restricted stock award activity under the employee plan described above for the three months ended March 31, 2017:

	Unvested Restricted Stock Award Shares			Weighted Average Grant Date Fair Value Per Share
Nonvested balance at December 31, 2016		377,655		$	66.14
Granted		120,820		$	68.50
Vested		(105,207	)	$	68.90
Forfeited		(1,017	)	$	64.20
Nonvested balance at March 31, 2017		392,251		$	66.13

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 March 31, 2017, 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 three months ended March 31, 2017:

	Outstanding Non- Qualified or Nonincentive Stock Options			Weighted Average Exercise Price
Outstanding at December 31, 2016		205,429		$	64.60
Exercised		(27,000	)	$	45.28
Outstanding at March 31, 2017		178,429		$	67.53

The following table summarizes information about the Company’s outstanding and exercisable stock options under the director plan at March 31, 2017:

		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		6,000		2.1	$	29.60				6,000	$	29.60
$	41.24 – $56.45		65,276		2.6	$	51.96				65,276	$	51.96
$	61.89 – $62.48		35,153		5.3	$	62.31				35,153	$	62.31
$	75.17 – $99.52		72,000		6.0	$	87.35				72,000	$	87.35
$	29.60 – $99.52		178,429		4.3	$	67.53	$	1,749,000		178,429	$	67.53	$	1,749,000

The following is a summary of the restricted stock award activity under the director plan described above for the three months ended March 31, 2017:

	Unvested Restricted Stock Award Shares			Weighted Average Grant Date Fair Value Per Share
Nonvested balance at December 31, 2016		347		$	64.89
Vested		(347	)	$	64.89
Nonvested balance at March 31, 2017		—		$	—

The total intrinsic value of all stock options exercised under all of the Company’s plans was $1,267,000 for the three months ended March 31, 2017. No stock options were exercised under the Company’s plans during the three months ended March 31, 2016. The actual tax benefit realized for tax deductions from stock option exercises was $414,000 for the three months ended March 31, 2017.

The total intrinsic value of all the restricted stock vestings under all of the Company’s plans was $6,989,000 and $5,432,000 for the three months ended March 31, 2017 and 2016, respectively. The actual tax benefit realized for tax deductions from restricted stock vestings was $2,285,000 and $2,037,000 for the three months ended March 31, 2017 and 2016, respectively.

As of March 31, 2017, there was $5,245,000 of unrecognized compensation cost related to nonvested stock options and $24,268,000 related to restricted stock. The stock options are expected to be recognized over a weighted average period of approximately 2.0 years and restricted stock over approximately 3.7 years. The total fair value of options vested was $2,473,000 and $2,469,000 during the three months ended March 31, 2017 and 2016, respectively. The fair value of the restricted stock vested was $6,989,000 and $5,432,000 for the three months ended March 31, 2017 and 2016, respectively.

The weighted average per share fair value of stock options granted during the three months ended March 31, 2017 and 2016 was $20.65 and $15.61, respectively. The fair value of the stock options granted during the three months ended March 31, 2017 and 2016 was $2,517,000 and $2,430,000, 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 three months ended March 31, 2017 and 2016 were as follows:

	Three months ended March 31,
	2017			2016
Dividend yield	None			None
Average risk-free interest rate		2.0	%		1.5	%
Stock price volatility		27	%		29	%
Estimated option term	Six years			Six years