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Stock Based Compensation
6 Months Ended
Jun. 30, 2019
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Stock Based Compensation

3. STOCK BASED COMPENSATION

The Company accounts for stock-based compensation under the provisions of ASC Topic 718, “Compensation - Stock Compensation.” The Company recognizes compensation cost in its financial statements for all share based payments granted, modified, or settled during the period.

For awards with graded vesting, compensation cost is recognized on a straight-line basis over the related vesting period.

The Company did not record any compensation expense related to stock options during the three and six months ended June 30, 2019. For the three and six months ended June 30, 2018, the Company recorded compensation expense (included in general and administrative expense) of $3,000 and $7,000, respectively, related to stock options. For the three months ended June 30, 2019 and 2018, the Company recorded compensation expense of $839,000 and $1,252,000, respectively, related to amortization of non-vested stock grants and performance-based awards. For the six months ended June 30, 2019 and 2018, the Company recorded compensation expense of $2,235,000 and $2,748,000, respectively, related to amortization of non-vested stock grants and performance-based awards.   

No stock options were exercised by employees and directors during the three and six months ended June 30, 2019. During the three and six months ended June 30, 2018, 71,606 options were exercised by employees and directors.

During the three months ended June 30, 2019 and 2018, 6,752 and 3,762 shares of non-vested stock, respectively, vested. During the six months ended June 30, 2019 and 2018, 23,573 and 39,953 shares of non-vested stock, respectively, vested.

During the six months ended June 30, 2019, the Company issued 18,688 shares of non-vested stock to employees and directors which vest over periods ranging from one to seven years. The per-share fair market value on the date of grant of the non-vested stock issued during the six months ended June 30, 2019 ranged from $95.71 to $99.10, resulting in an aggregate fair value of $1.8 million.

 

In September 2018, the Company announced that then current Chief Executive Officer, David Rogers, would be retiring effective March 1, 2019. In conjunction with this announcement, the vesting periods of certain restricted stock awards and performance-based awards previously granted to Mr. Rogers were accelerated to reflect his March 1, 2019 retirement date. As a result of this change, an additional $0.4 million of compensation expense was recorded during the six months ended June 30, 2019.