Stock-Based Compensation

3 Months Ended

Mar. 31, 2016

Stock-Based Compensation

In July 2011, a Special Meeting of Stockholders of Heartland Express, Inc. was held, at which meeting the approval of the Heartland Express, Inc. 2011 Restricted Stock Award Plan (the “Plan”) was ratified. The Plan is administered by the Compensation Committee of our Board of Directors. Per the terms of the awards, employees receiving awards will have all of the rights of a stockholder with respect to the unvested restricted shares including, but not limited to, the right to receive such cash dividends, if any, as may be declared on such shares from time to time and the right to vote such shares at any meeting of our stockholders.

The Plan made available up to 0.9 million shares for the purpose of making restricted stock grants to our eligible officers and employees. As of March 31, 2016, there were 0.5 million shares that had been granted to employees. During December 2011, 0.4 million shares were granted to employees and no additional shares were granted during 2012. The shares granted in 2013 through 2016 have various vesting terms that range from immediate to four years from the date of grant. Once vested, there are no other restrictions on the awards. Compensation expense associated with these awards is based on the market value of our stock on the grant date. Our market closing price on December 14, 2011, grant date, was $13.57 and ranged between $13.86 and $18.18 on the various grant dates for the shares issued in 2013. The Company's market close price ranged between $21.72 and $27.47 on the various grant dates during 2014, ranged between $19.93 and $27.29 on the various grant dates during 2015, and ranged between $17.06 and $18.78 on the various grant dates during the three months ended March 31, 2016. There were no significant assumptions made in determining the fair value. Compensation expense associated with restricted stock awards is included in salaries, wages and benefits in the consolidated statements of comprehensive income. Compensation expense associated with restricted stock awards was $0.6 million and $0.3 million for the three months ended March 31, 2016 and 2015, respectively. Unrecognized compensation expense was $0.4 million at March 31, 2016 which will be recognized over a weighted average period of 1.1 years.

The following tables summarizes our restricted stock award activity for the three months ended March 31, 2016 and 2015.



	Three Months Ended March 31, 2016
	Number of Shares of Restricted Stock Awards (in thousands)		Weighted Average Grant Date Fair Value
Unvested at beginning of period	102.4		$	18.36
Granted	33.0		17.48
Vested	(46.4	)	18.51
Forfeited	—		—
Outstanding (unvested) at end of period	89.0		$	17.68



	Three Months Ended March 31, 2015
	Number of Shares of Restricted Stock Awards (in thousands)		Weighted Average Grant Date Fair Value
Unvested at beginning of period	183.1		$	16.78
Granted	2.0		27.29
Vested	(10.0	)	13.57
Forfeited	—		—
Outstanding (unvested) at end of period	175.1		$	16.49