Note 1. Organization, Consolidation, Basis of Presentation and Accounting Policies: Share-based Compensation, Option and Incentive Plans Policy (Policies)

12 Months Ended

Dec. 31, 2015

Policies

Share-based Compensation, Option and Incentive Plans Policy

Compensation costs for equity awards, such as stock options and non-vested restricted stock, are measured based on grant-date fair value and are recognized in the Consolidated Statements of Income over the requisite service period (which is usually the vesting period). For such awards with only service conditions, the Company recognizes the compensation cost on a straight-line basis over the requisite service period for the entire award.

Compensation costs for liability-classified awards, such as share appreciation rights (“SARs”), are measured and accrued each reporting period in the Consolidated Statements of Income as the requisite service or performance conditions are met.