Share-Based Compensation

6 Months Ended

Jun. 30, 2016

Employee Service Share-based Compensation, Aggregate Disclosures [Abstract]

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

Note 2. Share-Based Restricted Stock Awards

On May 19, 2016, our shareholders approved the Old Dominion Freight Line, Inc. 2016 Stock Incentive Plan (the "Stock Incentive Plan") previously approved by our Board of Directors. The Stock Incentive Plan, under which awards can be granted until May 18, 2026 or the Stock Incentive Plan’s earlier termination, provides for the grant of incentive stock options, nonqualified stock options, stock appreciation rights, restricted awards, performance awards, phantom stock awards and other stock-based awards or dividend equivalent awards to selected employees and non-employee directors of the Company and its affiliates. The maximum number of shares of common stock that we may issue or deliver pursuant to awards granted under the Stock Incentive Plan is 2,000,000 shares.

During the quarter ended June 30, 2016, we granted restricted stock awards to selected employees and non-employee directors under the Stock Incentive Plan. The employee restricted stock awards vest in three equal annual installments on each anniversary of the grant date, and the non-employee director restricted stock awards vest in full on the first anniversary of the grant date. In both cases, the restricted stock awards are subject to accelerated vesting due to death, total disability, or change in control of the Company. Subject to the foregoing, unvested restricted stock awards are generally forfeited upon termination of employment or service. The restricted stock awards only carry rights to vote or receive dividends to the extent vested.

Share-based compensation to employees and non-employee directors is accounted for under ASC Topic 718, "Compensation - Stock Compensation". Compensation cost for restricted stock awards is measured at the grant date based on the fair market value per share of our common stock. Compensation cost is recognized on a straight-line basis over the requisite service period of each award and is presented in "Salaries, wages and benefits" for employees and “Miscellaneous expenses, net” for non-employee directors in the accompanying Condensed Statements of Operations.

The following table summarizes our restricted stock award activity:



	Shares	Weighted Average Grant Date Fair Value Per Share


Granted on May 26, 2016	74,376	$	63.94
Vested	—	—
Forfeited	—	—
Unvested at June 30, 2016	74,376	$	63.94

At June 30, 2016, the Company had $4.1 million of stock-based compensation cost, net of estimated forfeitures, related to unvested restricted stock awards that will be recognized over a weighted average period of 2.62 years.