Stock-Based Compensation

The Company’s 2007 Long-Term Equity Incentive Plan, as amended, approved in May 2008 (the "2007 Plan"), authorizes the issuance of up to 562,500 shares of the Company’s common stock. Unused shares previously authorized under prior plans have been rolled over into the 2007 Plan and increased the total number of shares authorized for issuance under the 2007 Plan by 130,000.

The Company’s outstanding unvested stock options have maximum contractual terms of up to six years, principally vest ratably over four years and are granted at exercise prices equal to the market price of the Company’s common stock on the date of grant. The Company’s outstanding stock options are exercisable into shares of the Company’s common stock. The Company’s outstanding RSUs principally vest ratably over four years. Upon vesting, RSUs convert into shares of the Company’s common stock. The Company currently issues authorized shares of common stock upon vesting of restricted shares or the exercise of other equity awards. The Company has no outstanding stock appreciation rights.

The Company measures the cost of employee services received in exchange for an award of equity instruments, including grants of employee stock options, RSUs and PSUs, based on the fair value of the award at the date of grant in accordance with the modified prospective method. The Black-Scholes model requires the Company to make significant judgments regarding the assumptions used within the model, the most significant of which are the stock price volatility assumption, the expected life of the option award, the risk-free rate of return and dividends during the expected term. Stock-based compensation is expensed on a straight-line basis over the service period of the awards, with the exception of PSUs, which are expensed based on the probability that the performance condition will be satisfied.

Total stock-based compensation expense recognized in selling, general and administrative expenses was $1.5 million and $1.6 million for the years ended 2016 and 2015, respectively. The income tax benefits related to the Company’s stock-based compensation expense were $0.1 million and $0.4 million for the years ended 2016 and 2015, respectively.

As of the year ended 2016, there was approximately $1.4 million of total unrecognized compensation cost related to unvested stock-based compensation grants, which is expected to be amortized over a weighted average period of 2.1 years.

Stock Options

A summary of the Company’s outstanding stock options as of and for the years ended 2016 and 2015 is as follows:



	Options		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (In Years)	Aggregate Intrinsic Value ⁽¹⁾(in thousands)
Outstanding as of the year ended 2014	208,813		$	41.44	1.4	$	29
Granted	85,687		19.04
Exercised	—		—			$	—
Forfeited/expired	(104,250	)	35.12
Outstanding as of the year ended 2015	190,250		$	34.56	3.0	$	—
Granted	—		—
Exercised	—		—			$	—
Forfeited/expired	(60,885	)	52.09
Outstanding as of the year ended 2016	129,365		$	26.31	2.9	$	—
Exercisable as of the year ended 2016	69,684		$	32.71	1.7	$	—

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⁽¹⁾	Intrinsic value for purposes of this table represents the amount by which the fair value of the underlying stock, based on the respective market prices as of the years ended 2016, 2015 and 2014, or, if exercised, the exercise dates, exceeds the exercise prices of the respective options.

The weighted average grant date fair value of stock options granted during the year ended 2015, were at exercise prices equal to the market price of the stock on the grant dates, as calculated under the Black-Scholes model with the weighted average assumptions as follows:



	2015
Weighted average fair value of option grants during the year	$	6.88
Assumptions:
Expected option life in years	4.25
Risk-free interest rate	1.24		%
Expected volatility	43.0		%
Expected dividend yield	0.0		%

The risk-free interest rate represents the United States Treasury Bond constant maturity yield approximating the expected option life of stock options granted during the period. The expected option life represents the period of time that the stock options granted during the period are expected to be outstanding, based on the mid-point between the vesting date and contractual expiration date of the option. The expected volatility is based on the historical market price volatility of the Company’s common stock for the expected term of the options, adjusted for expected mean reversion.

There were no stock options granted during the year ended 2016.

RSUs

A summary of the Company’s non-vested RSUs as of and for the years ended 2016 and 2015 is as follows:



	RSUs		Weighted Average Grant Date Fair Value
Unvested as of the year ended 2014	64,108		$	25.76
Granted	86,994		19.04
Vested	(40,858	)	31.36
Forfeited	(5,157	)	18.00
Unvested as of the year ended 2015	105,087		$	18.43
Granted	20,961		9.66
Vested	(43,084	)	18.29
Forfeited	—		—
Unvested as of the year ended 2016	82,964		$	16.28

On July 28, 2016, a total of 20,961 RSUs, which vest one year from the date of issuance, were issued to the independent members of the Company's Board of Directors. The fair value of these awards was determined based on the Company's stock price on the dates of issuance.

On May 20, 2015, 72,813 RSUs were issued to certain employees of the Company, which vest ratably over four years. Additionally, 14,181 RSUs were issued to certain members of the Company's Board of Directors, which vested one year from the date of issuance. The fair value of these awards was determined based on the Company's stock price on the dates of issuance.

The total fair value of RSUs, which vested during the years ended 2016 and 2015, was $0.3 million and $0.6 million, respectively, as of the respective vesting dates.

PSUs

A summary of the Company's non-vested PSUs as of and for the years ended 2016 and 2015 is as follows:



	PSUs		Weighted Average Grant Date Fair Value
Unvested as of the year ended 2014	—		$	—
Granted	73,750		19.04
Vested	—		—
Forfeited	(3,125	)	19.04
Unvested as of the year ended 2015	70,625		$	19.04
Granted	—		—
Vested	(70,625	)	19.04
Forfeited	—		—
Unvested as of the year ended 2016	—		$	—

On May 20, 2015, 73,750 PSUs were granted to certain employees, with each award representing the right to receive one share of the Company's common stock upon the achievement of certain established performance targets and service conditions. The performance period for the awards was December 28, 2014 through January 2, 2016. Distributions under these awards were payable on the one year anniversary of the grant date provided the grantee's employment had not ceased prior to such date.

The fair value of these awards was determined based on the Company's stock price on the grant date. These awards are subject to forfeiture upon termination of employment prior to vesting.

There were no PSUs granted during the year ended 2016.