Stock Based Compensation Plans

9 Months Ended

Sep. 30, 2012

Disclosure of 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 the first quarter of 2012 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. Share and per share amounts have been restated for the September 2012 2% stock dividend.

The following table presents a roll-forward of our stock option plans and grants issued during 2012:

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Schedule of Share-based Compensation Arrangements
	Stock Option Plans
Roll-Forward of Shares Outstanding:
Outstanding at January 1, 2012	482,765
Granted	75,786
Exercised	(67,831		)
Forfeited	(18,362		)
Outstanding at September 30, 2012	472,358
Exercisable at Period End	289,123
Vested and Expected to Vest	472,358
Roll-Forward of Shares Outstanding - Weighted Average Exercise Price:
Outstanding at December 31, 2011	$	22.46
Granted	24.92
Exercised	21.40
Forfeited	23.93
Outstanding at September 30, 2012	22.95
Exercisable at Period End	22.39
Vested and Expected to Vest	$	22.95
Grants Issued During 2012 - Weighted Average Information:
Fair Value	6.01
Fair Value Assumptions:
Dividend Yield	3.93		%
Expected Volatility	37.43		%
Risk Free Interest Rate	1.22		%
Expected Lives (in years)	6.46

The following table presents information on the amounts expensed and remaining amounts to be expensed for the periods ended September 30, 2012 and 2011:

Share-Based Compensation Expense
	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2012		2011		2012		2011
Share-Based Compensation Expense	$	108	$	92	$	315	$	266

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.