XML 22 R12.htm IDEA: XBRL DOCUMENT
v3.10.0.1

Stock-Based Compensation Plans | 6 Months Ended
--- | ---
Jun. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
Stock-Based Compensation Plans | Stock-Based Compensation Plans As of June 30, 2018, the Company had four equity incentive plans which include two stock option plans, a restricted stock plan and an employee stock purchase plan. All plans and any prior material amendments thereto have previously been approved by shareholders. Readers should refer to Note 5 of our consolidated financial statements in our Annual Report on Form 10-K for the calendar year ended December 31, 2017, for additional information related to these stock-based compensation plans. The Company recognized compensation expense for share-based payments of $4,465,634 and $8,366,949 for the three and six months ended June 30, 2018, respectively, and $3,406,371 and $6,890,611 for the three and six months ended June 30, 2017, respectively. Compensation cost for share based payment awards capitalized as part of inventory as of June 30, 2018 and June 30, 2017 was $299,227 and $225,613, respectively. Employee Stock Option Plan The Company has an employee stock option plan covering 24,000,000 shares of common stock. The purpose of the plan is to provide an opportunity to use stock options as a means of recruiting new managerial and technical personnel and as a means for retaining certain employees of the Company by allowing them to purchase shares of common stock of the Corporation and thereby having an additional incentive to contribute to the prosperity of the Company. The fair value of each option grant in the employee stock option plan was estimated on the date of grant using the Black-Scholes option pricing model with the following weighted-average assumptions for the indicated periods:
| Three Months Ended June 30, |  |  |  | Six Months Ended June 30, |  |
| 2018 |  | 2017 |  | 2018 |  | 2017
Dividend Yield (1) | 1.99 | % |  | 2.15 | % |  | 2.09 | % |  | 2.17 | %
Expected volatility (2) | 23.27 | % |  | 28.02 | % |  | 26.68 | % |  | 29.21 | %
Risk-free interest rate (3) | 2.73 | % |  | 1.89 | % |  | 2.83 | % |  | 2.03 | %
Expected term of options (years) (4) | 4.19 |  | 4.24 |  | 4.60 |  | 4.14
Weighted-avg. grant date fair value | $4.28 |  | $3.86 |  | $5.03 |  | $4.29
1. Represents the Company’s estimated cash dividend yield over the expected term of option grant. 2. Amount is determined based on analysis of historical price volatility of the Company’s common stock. The expected volatility is based on the daily percentage change in the price of the stock over a period equal to the expected term of the option grant. 3. Represents the U.S. Treasury yield over the expected term of the option grant. 4. Represents the period of time that options granted are expected to be outstanding. Based on analysis of historical option exercise activity, the Company has determined that all employee groups exhibit similar exercise and post-vesting termination behavior. Under the employee stock option plan, the option exercise price equals the stock’s market price on date of grant. The options vest after one to five years, and expire after five to ten years. As of June 30, 2018, there was $10,140,213 of unrecognized compensation cost related to share-based payments which is expected to be recognized over the remaining vesting periods. Non-employee Director Stock Option Plan The Company has a non-employee director stock option plan covering 1,000,000 shares of common stock. As of June 30, 2018, there was $198,044 of unrecognized compensation cost under the non-employee director plan related to share-based payments. The Company has granted options on 476,000 shares under the non-employee director plan through June 30, 2018. Under the non-employee director plan, the option exercise price equals the stock’s market price on the date of grant. The options vest after six months, and expire after ten years. Employee Stock Purchase Plan The Company has an employee stock purchase plan covering 2,000,000 shares of common stock. Under the plan, the Company sells shares at 85% of the stock’s market price at date of purchase. Under ASC 718, the 15% discounted value is recognized as compensation expense. As of June 30, 2018, the Company has granted 863,395 shares under this plan. Restricted Stock Plan The Company has a restricted stock plan covering 9,000,000 shares of common stock. The purpose of the restricted stock plan is to permit grants of shares, subject to restrictions, to employees of the Company as a means of retaining and rewarding them for performance and to increase their ownership in the Company. Shares awarded under the restricted stock plan entitle the shareholder to all rights of common stock ownership except that the shares may not be sold, transferred, pledged, exchanged or otherwise disposed of during the restriction period. The restriction period is determined by the Compensation Committee, appointed by the Board of Directors, but may not exceed ten years under the terms of the plan. As of June 30, 2018, the Company had unearned stock-based compensation of $32,362,619 associated with these restricted stock grants. The unearned stock-based compensation related to these grants is being amortized to compensation expense over the applicable restriction periods. Amortization expense from restricted stock grants in the three and six months ended June 30, 2018 was $2,189,938 and $3,832,998, respectively, and for the three and six months ended June 30, 2017 was $1,285,847 and $2,226,658, respectively.

X
- Definition The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -URI http://asc.fasb.org/subtopic&trid=2208855 + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsSharebasedPaymentsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration