Stock Incentive Compensation falls under the scope of ASC Topic 718 "Compensation – Stock Compensation" and affects the stock awards that have been granted and requires us to expense share-based payment ("SBP") awards with compensation cost for SBP transactions measured at fair value. For restricted stock and restricted stock units, we are computing fair value based on a 20-day Exponential Moving Average ("EMA") as of the close of business the Friday preceding the award date. For stock options, we have elected to use the simplified method of calculating the expected term and historical volatility to compute fair value under the Black-Scholes option-pricing model. The risk-free rate for periods within the contractual life of the option is based on the U.S. zero coupon Treasury yield in effect at the time of grant. In addition, we do not estimate a forfeiture rate at the time of grant, instead we elect to recognize share-based compensation expense when actual forfeitures occur.

2016 Equity and Incentive Compensation Plan

Long-Term / Annual Incentives

On March 9, 2016, stockholders approved and adopted the 2016 Equity and Incentive Compensation Plan ("2016 Plan") which replaced the Amended and Restated 1993 Key Employee Stock Incentive Program. The 2016 Plan authorizes the Compensation Committee of the Board of Directors of the Company to grant to officers and other key employees, including directors, of the Company and our subsidiaries (i) option rights, (ii) appreciation rights, (iii) restricted shares, (iv) restricted stock units, (v) cash incentive awards, performance shares and performance units and (vi) other awards. An aggregate of 1,500 shares of Common Stock, subject to adjustment upon occurrence of certain events to prevent dilution or expansion of the rights of participants that might otherwise result from the occurrence of such events, was reserved for issuance pursuant to the Incentive Plan. An individual’s award of option and / or appreciation rights is limited to 500 shares during any calendar year. Also, an individual's award of restricted shares, restricted share units and performance based awards is limited to 350 shares during any calendar year.

The following table summarizes the Company’s Incentive Plan activity for the nine months ended July 31, 2018 and 2017:



	Stock Options				Restricted Stock				Restricted Stock Units
Outstanding at:	Options		Weighted Average Exercise Price	Weighted Average Remaining Contractual Life	Restricted Shares		20-day EMA	Weighted Average Remaining Contractual Life	Restricted Share Units		20-day EMA	Weighted Average Remaining Contractual Life



November 1, 2016	90		$9.67	3.04	376		$6.11	1.83	22		$4.17	1.78
Granted	—		—		246		7.93		29		8.62
Options exercised or restricted stock vested	(8	)	9.79		(159	)	5.71		(14	)	4.17
Forfeited or expired	(24	)	13.38		(5	)	9.20		—		—
July 31, 2017	58		$8.16	2.78	459		$7.19	1.78	37		$7.67	2.10

November 1, 2017	58		$8.16	2.53	441		$7.07	1.60	36		$7.69	1.82
Granted	—		—		296		8.12		18		7.90
Options exercised or restricted stock vested	(12	)	3.26		(200	)	7.51		(15	)	8.30
Forfeited or expired	(3	)	12.04		(41	)	7.08		(12	)	6.18
July 31, 2018	43		$9.33	1.83	496		$7.52	1.95	26		$8.17	1.72

We recorded stock compensation expense related to stock options, restricted stock and restricted stock units during the three and nine months ended July 31, 2018 and 2017 as follows:



	Three Months Ended July 31,				Nine Months Ended July 31,
	2018		2017		2018		2017
Restricted stock	$	488	$	505	$	1,465	$	1,286
Restricted stock units	27		33		92		86
Total	$	515	$	538	$	1,557	$	1,372

Stock Options - The exercise price of each stock option equals the market price of our common stock on the grant date. Compensation expense is recorded at the grant date fair value, adjusted for forfeitures as they occur, and is recognized over the applicable vesting periods. Our stock options generally vest over three years, with a maximum term of ten years. Incentive stock options were not granted during the three and nine months ended July 31, 2018 and 2017.

Cash received from the exercise of options for the nine months ended July 31, 2018 and 2017 was $41 and $78, respectively. Options that have an exercise price greater than the market price are excluded from the intrinsic value computation. At July 31, 2018 and October 31, 2017, the options outstanding and exercisable had an intrinsic value of $52 and $137, respectively.

Restricted Stock Awards - The grant date fair value of each restricted stock award equals the fair value of our common stock based on a 20-day EMA as of the close of business on the Friday preceding the award date. Compensation expense is recorded at the grant date fair value, adjusted for forfeitures as they occur, and is recognized over the applicable vesting periods. The vesting periods range between one to four years. As of July 31, 2018, there was approximately $2,630 of total unrecognized compensation expense related to non-vested restricted stock that is expected to be recognized over the applicable vesting periods.

Restricted Stock Units - The grant date fair value of each restricted stock unit equals the fair value of our common stock based on a 20-day EMA as of the close of business on the Friday preceding the award date. Compensation expense is recorded at the grant date fair value, adjusted for forfeitures as they occur, and is recognized over the applicable vesting periods. The vesting periods range between one to three years. As of July 31, 2018, there was approximately $154 of total unrecognized compensation expense related to these restricted stock units that is expected to be recognized over the applicable vesting periods.

Cash Incentive Award Agreements - Under the provisions of the 2016 Plan, Cash Incentive Awards are granted annually to executives and director level employees. These awards were designed to provide the individuals with an incentive to participate in the long-term success and growth of the Company. The Cash Incentive Award amounts are based on 3-year return on capital employed and 3-year adjusted earnings before interest, taxes, depreciation and amortization goals, which could range from 0% to 200% based on the achievement of performance goals. The Cash Incentive Award Agreements cliff-vest after three years if the performance goals are achieved. These awards may be subject to payment upon a change in control or termination of employment, under certain circumstances, if certain performance goals are achieved. In addition, these awards represent unfunded, unsecured obligations of the Company.

During the three and nine months ended July 31, 2018, we recorded expense related to these awards of $286 and $666, respectively, and $203 and $485 during the three and nine months ended July 31, 2017. At July 31, 2018 and October 31, 2017, we had a liability of $1,202 and $536, respectively, related to these awards are presented as other accrued expenses in the condensed consolidated balance sheets.