Stock Option Plans

12 Months Ended

Dec. 31, 2011

Compensation Related Costs, Share Based Payments [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

STOCK BASED COMPENSATION PLANS

Under our 2008 Long-Term Incentive Plan, we granted options in both the first quarters of 2012 and 2011 to purchase shares of our common stock. The fair values of the options were estimated on the date of grant using the Black-Scholes option-pricing model. The fair value of our grants is expensed over the four year vesting period.

The following table presents information on the amounts expensed and remaining amounts to be expensed for the periods ended March 31, 2012 and 2011:

	2012		2011
Amount Expensed During the Quarter	$	99	$	82

Grants were issued during 2012 and 2011. The following table presents information on the grants (restated for the 3% September 2011 stock dividend):

Grants issued:	2012	2011
Shares Granted	74,300	76,887
Fair Value of Options Granted	$6.13	$6.24
Assumptions:
Dividend Yield	3.93%	4.00%
Expected Volatility	37.4%	36.5%
Risk Free Interest Rate	1.22%	2.54%
Expected Lives (in years)	6.46	6.40

A summary of the status of Arrow’s stock option plans as of March 31, 2012 and changes during the period then ended is presented below.

Options:	Shares		Weighted Average Exercise Price
Outstanding at January 1, 2012	473,435		$	22.90
Granted	74,300		25.42
Exercised	(52,502	)	21.89
Forfeited	(7,229	)	24.03
Outstanding at March 31, 2012	488,004		23.38
Exercisable at March 31, 2012	300,532		22.80
Expected to Vest	187,472		24.30

Arrow also sponsors an Employee Stock Purchase Plan under which employees purchase Arrow's common stock at a 5% discount below market price. Under current accounting guidance, a stock purchase plan with a discount of 5% or less is not considered a compensatory plan.