Stock Incentive Plans

12 Months Ended

Dec. 31, 2016

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Stock Incentive Plans

10. Stock Incentive Plans

The Company's 2015 Stock Incentive Plan (the "2015 Plan"), which provides for stock-based awards to Company employees, non-employee directors and outside consultants or advisors, was approved by stockholders on May 27, 2015.  The number of shares of common stock reserved for issuance under the 2015 Plan is 1,000,000, of which the maximum number of shares for which incentive stock options may be granted is 900,000.  The 2015 Plan replaced the Company’s 2009 Stock Incentive Plan (the “2009 Plan”), and no new stock-based awards may be granted under the 2009 Plan. The number of shares available for grant at December 31, 2016 is 792,795. Outstanding option awards under all the plans generally expire ten years after the date of grant.

Stock-based compensation expense included in selling, general and administrative expenses during the years ended December 31, 2016, 2015 and 2014, was $2.8 million, $2.4 million and $1.7 million, respectively. Related income tax benefits for the years ended December 31, 2016, 2015 and 2014, were $1.1 million, $948,000 and $675,000, respectively.

Stock Options

Stock options are generally exercisable in four equal annual installments beginning one year following the date of grant.

A summary of the status of the Company’s stock options at December 31, 2016, together with changes during the periods then ended, is presented below:

						Weighted
				Weighted		Average			Aggregate
				Average		Remaining			Intrinsic
	Number			Exercise		Contractual		Value
	of Options			Price		Term (years)		(in thousands)
Outstanding at December 31, 2015		360,100		$	17.35
Options granted at market price		10,000			39.80
Options exercised		(4,400	)		14.32
Options cancelled		(62,500	)		18.56
Outstanding at December 31, 2016		303,200			17.89		4.53			14,012
Exercisable at December 31, 2016		206,950		$	15.44		3.86		$	10,069

The weighted average fair value of stock options granted for the years ended December 31, 2016 and 2015, was $17.10 and $10.76, respectively. There were no stock options granted with an exercise price below market price during 2016 and 2015. No stock options were granted during 2014.

The intrinsic value of stock options exercised for the years ended December 31, 2016, 2015 and 2014, was $113,000, $1.1 million and $1.0 million, respectively. The fair value of shares vested for the years ended December 31, 2016, 2015 and 2014, was $319,000, $383,000 and $534,000, respectively. As of December 31, 2016, unrecognized compensation expense related to stock options was $718,000 with a weighted average remaining amortization period of 2.5 years.

Restricted Stock Units

Restricted stock units vest in four equal annual installments beginning one year following the date of grant.

The following table presents restricted stock unit activity:

				Weighted Average
				Grant Date
	Units			Fair Value
Nonvested at December 31, 2015		150,811		$	42.74
Granted		150,780			41.72
Vested		(35,604	)		40.67
Cancelled/Forfeited		(37,112	)		42.19
Nonvested at December 31, 2016		228,875		$	42.48

The total fair value of shares vested during the years ended December 31, 2016, 2015 and 2014, was $1.9 million, $1.7 million and $820,000, respectively. As of December 31, 2016, unrecognized compensation expense related to restricted stock units was $8.1 million with a weighted average remaining amortization period of 3.0 years.