Stock Based Compensation Plans

9 Months Ended

Sep. 30, 2014

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 2013 Long-Term Incentive Plan, we granted options in the first quarter of 2014 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 2013 2% stock dividend.

The following table presents a roll-forward of our stock option plans and grants issued during 2014:

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Schedule of Share-based Compensation Arrangements
	Stock Option Plans
Roll-Forward of Shares Outstanding:
Outstanding at January 1, 2014	397,187
Granted	75,518
Exercised	(46,099		)
Forfeited	—
Outstanding at September 30, 2014	426,606
Exercisable at Period-End	287,529
Vested and Expected to Vest	139,077
Roll-Forward of Shares Outstanding - Weighted Average Exercise Price:
Outstanding at January 1, 2014	$	22.44
Granted	24.51
Exercised	23.05
Forfeited	—
Outstanding at September 30, 2014	22.74
Exercisable at Period-End	21.91
Vested and Expected to Vest	24.46
Grants Issued During 2014 - Weighted Average Information:
Fair Value	5.92
Fair Value Assumptions:
Dividend Yield	3.97		%
Expected Volatility	35.30		%
Risk Free Interest Rate	2.19		%
Expected Lives (in years)	6.85

The following table presents information on the amounts expensed for the periods ended September 30, 2014 and 2013:

Share-Based Compensation Expense
	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2014		2013		2014		2013
Share-Based Compensation Expense	$	90	$	92	$	270	$	281

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.