Shareholders' Equity

12 Months Ended

Dec. 31, 2015

16. Shareholders’ Equity

Beginning in 2006 and again in 2011, the Company implemented five-year plans to award key members of management restricted stock units (“RSUs”) each year based upon annual financial performance of the Company and its subsidiaries. Each five-year plan allows up to 700 of newly issued shares of Company stock to be granted to employees. RSUs awarded under the Company’s 2006 and 2011 Incentive Plans were granted shortly after the end of each year from 2006 through 2015 based upon the performance of the Company and its individual subsidiaries, with additional RSU’s granted based upon cumulative five-year performance. Generally, each award vests at the end of five years from the date of grant, or at the time a recipient retires after reaching age 65, if earlier. The fair value of the RSUs that vested during 2015, 2014 and 2013 was $2,785, $3,045 and $2,405, respectively. The grant date tax benefit was increased (reduced) by $336, $470 and $(77), respectively, upon the vesting of RSUs in 2015, 2014 and 2013.

Compensation expense of $1,019, $961 and $1,231 was recorded in the years ended December 31, 2015, 2014 and 2013, respectively, to reflect the fair value of RSUs granted (or anticipated to be granted for annual and five-year ended 2015 performance) less estimated forfeitures, amortized over the portion of the vesting period occurring during the period. Related income tax benefits of $362, $348 and $417 were recorded in 2015, 2014 and 2013, respectively. Based upon the grant date fair value of RSUs, it is anticipated that $2,016 of additional compensation costs will be recognized in future periods through 2021 for RSUs earned through December 31, 2015. The weighted average period over which this additional compensation cost will be expensed is 4.0 years. RSUs do not participate in Company paid dividends.

Changes in restricted stock units during the year ended December 31, 2015 are as follows:

	2015			Weighted Average Grant Date Fair Value
Unvested restricted stock units, beginning of year		197		$	33.54
Units granted		22			42.77
Units forfeited		(6	)		39.63
Units vested		(66	)		28.70
Unvested restricted stock units, end of year		147			36.83

The grant date fair value of the restricted stock units granted during 2015, 2014 and 2013 was $937, $561 and $763, respectively.