Stock Incentive Plans

3 Months Ended

Mar. 31, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

On April 19, 2016, the shareholders approved the 2016 Stock Incentive Plan ("2016 Plan"). The 2016 Plan allows for the issuance of stock options, stock appreciation rights, stock awards (including restricted stock and restricted stock unit awards) and other stock-based awards. The aggregate number of shares of common stock that are subject to awards under the 2016 Plan is 650 thousand shares plus any shares of common stock that, as of the date of the 2016 Plan is approved by the shareholders, are reserved and available for grant or issuance under the 2013 Stock Incentive Plan ("2013 Plan") and the 2006 Stock Incentive Plan ("2006 Plan"). The 2016 Plan terminates on April 19, 2026. Prior to the effective date of the 2016 Plan, the Company granted stock awards to eligible participants under our 2013 Plan and 2006 Plan. As of the effective date of the 2016 Plan, no additional awards may be granted pursuant to the 2013 Plan and 2006 Plan; however, awards outstanding as of the effective date will continue to vest in accordance with the terms of the 2013 Plan and 2006 Plan, respectively.

On April 5, 2013, the shareholders approved the 2013 Plan and the aggregate number of shares of common stock that were subject to awards under the 2013 Plan, subject to adjustment upon a change in capitalization, was 4.0 million. On June 20, 2006, the shareholders approved the 2006 Plan and, as amended, the aggregate number of shares of common stock that were subject to awards under the 2006 Plan was 7.9 million. The 2013 Plan and 2006 Plan allowed for the issuance of stock options, stock appreciation rights, restricted stock and common stock, subject to share availability. The 2013 Plan terminates on April 5, 2023. The 2006 Plan expired on April 28, 2016.

During the three months ended March 31, 2016 and 2015, Kforce recognized total stock-based compensation expense of $1.9 million and $1.3 million, respectively.

Restricted Stock

Kforce's annual restricted stock grants made to executives and management are generally based on the extent by which annual long-term incentive performance goals, which are established by Kforce’s Compensation Committee during the first quarter of the year of performance, have been met, as determined by the Compensation Committee. Additionally, Kforce, with the approval of the Compensation Committee, grants restricted stock in varying amounts as determined appropriate during the year to retain executives and management. Restricted stock granted during the three months ended March 31, 2016 will vest over a period of between five to ten years, with equal vesting annually.

Restricted stock contain the same voting rights as other common stock and are included in the number of shares of common stock issued and outstanding. Restricted stock contain the right to forfeitable dividends in the form of additional shares of restricted stock at the same rate as the cash dividend on common stock and containing the same vesting provisions as the underlying award. The following table presents the activity for the three months ended March 31, 2016 (in thousands, except per share amounts):



	Number of Restricted Stock		Weighted Average Grant Date Fair Value		Total Intrinsic Value of Restricted Stock Vested
Outstanding as of December 31, 2015	1,293		$	20.89
Granted	538		$	22.72
Forfeited/Canceled	(84	)	$	21.70
Vested	(157	)	$	21.08	$	3,972
Outstanding as of March 31, 2016	1,590		$	21.44

The fair market value of restricted stock is determined based on the closing stock price of Kforce’s common stock at the date of grant, and is amortized on a straight-line basis over the requisite service period. As of March 31, 2016, total unrecognized compensation expense related to restricted stock was $26.1 million, which will be recognized over a weighted average remaining period of 4.6 years.