Stock Based Compensation Plans

9 Months Ended

Sep. 30, 2017

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

Stock Based Compensation Plans

STOCK BASED COMPENSATION PLANS

Under the 2013 Long-Term Incentive Plan, Arrow granted options in the first quarter of 2017 to purchase shares of 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 grants is expensed over the four year vesting period.

The following table presents a roll-forward of stock option plans and grants issued during 2017:

Schedule of Share-based Compensation Arrangements
	Stock Option Plans
Roll-Forward of Shares Outstanding:
Outstanding at January 1, 2017	366,329
Granted	55,621
Exercised	(35,937		)
Forfeited	—
Outstanding at September 30, 2017	386,013
Exercisable at Period-End	242,706
Vested and Expected to Vest	143,307
Roll-Forward of Shares Outstanding - Weighted Average Exercise Price:
Outstanding at January 1, 2017	$	21.86
Granted	36.12
Exercised	20.46
Forfeited	—
Outstanding at September 30, 2017	24.05
Exercisable at Period-End	21.34
Vested and Expected to Vest	28.62
Grants Issued During 2017 - Weighted Average Information:
Fair Value	$	6.25
Fair Value Assumptions:
Dividend Yield	2.72		%
Expected Volatility	21.40		%
Risk Free Interest Rate	2.25		%
Expected Lives (in years)	6.88

The following table presents information on the amounts expensed for the periods ended September 30, 2017 and 2016:

Share-Based Compensation Expense
	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2017		2016		2017		2016
Share-Based Compensation Expense	$	90	$	71	$	262	$	215

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.