Stock-Based Compensation

12 Months Ended

Dec. 31, 2012

Stock-Based Compensation [Abstract]

Stock-Based Compensation

F.   STOCK-BASED COMPENSATION: 

The Company, from time to time, enters into separate non-vested share-based payment arrangements with employees and executive officers under the Incentive Compensation Plan approved by stockholders on May 18, 2010, which authorized50,000 shares to be available for grants.  The Compensation Committee of the Company’s Board of Directors approves all stock-based compensation awards for employees and executive officers of the Company.  The Company grants restricted stock that is subject to continued employment and vesting conditions, but has dividend and voting rights, and uses the fair-market value of the Company’s common stock on the grant date to measure the fair value of the awards.  The fair value of restricted stock is recognized as expense ratably over the requisite serviced period, net of estimated forfeitures.  The Company does not capitalize stock-based compensation costs.

During 2012, 2011, and 2010, the Company granted 1,695,  3,402 and 3,328 shares of restricted stock, respectively, to 16 employees and executive officers of the Company.  The restricted stock vests on specified dates in 2015 through 2018, subject to the recipients’ continued employment or service through each applicable vesting date. 

The Company recognized pre-tax compensation expense in the Consolidated Statements of Comprehensive Income related to stock-based compensation of $91,000, $29,000, and $3,000 in 2012, 2011, and 2010, respectively.  Certain accrued bonuses as of December 31, 2009 were converted to restricted stock awards during 2010.  The fair value of the awards on the 2010 grant date was $238,000, which approximates the amount that was included in selling and general expense in the Consolidated Statement of Comprehensive Income for 2009 when the bonuses were accrued. 

As of December 31, 2012, there was approximately $449,000 of unrecognized compensation cost related to the restricted stock awards that is expected to be recognized over a weighted-average period of 4.3 years.  There were no shares of restricted stock that vested during 2012, 2011, or 2010.

The following table summarizes the activity for non-vested restricted stock:

	2012			2011			2010
	Shares	Weighted Average Fair Value at Grant Date		Shares	Weighted Average Fair Value at Grant Date		Shares	Weighted Average Fair Value at Grant Date
Non-vested at beginning of period	6,730	$	101.26	3,328	$	109.38	0	$	-
Granted	1,695		76.43	3,402		93.32	3,328		109.38
Forfeited	(32)		93.60	0		-	0		-
Non-vested at end of period	8,393	$	96.28	6,730	$	101.26	3,328	$	109.38