XML 30 R18.htm IDEA: XBRL DOCUMENT

Note 12 - Stock Option and Equity Incentive Plans

12 Months Ended

Dec. 31, 2020

Notes to Financial Statements

Share-based Payment Arrangement [Text Block]

	(12)	Share-Based Compensation

		Share-based compensation is measured at the grant date based on the fair value of the award and is recognized as an expense over the requisite service period (generally the vesting period of the equity grant). Share-based compensation is included in selling, general & administrative expenses as follows (in thousands):

		Years Ended December 31,
Share-based compensation related to:		2020				2019				2018
Common stock grants		$	400			$	400			$	505
Stock option grants			232				151				149
Restricted Stock Unit awards			1,175				1,040				558
Total share-based compensation		$	1,807			$	1,591			$	1,212

		The total income tax benefit recognized in the consolidated statements of income for share-based compensation arrangements was approximately $734 thousand, $653 thousand and $544 thousand for the years ended December 31, 2020, 2019 and 2018, respectively.

		Common stock grants

		The compensation expense for common stock granted during the three-year period ended December 31, 2020, was determined based on the market price of the shares on the date of grant.

		Stock option grants

		The compensation expense for stock options granted during the three-year period ended December 31, 2020, was determined as the fair value of the options using the Black Scholes valuation model. The assumptions are noted as follows:

		Years Ended December 31,
		2020			2019			2018
Expected volatility		32.8%			28.9%			27.7%
Expected dividends		None			None			None
Risk-free interest rate		0.3%			2.3%			2.7%
Exercise price		$43.95			$38.61			$31.20
Expected term (years)		6.1			6.0			6.0
Weighted-average grant date fair value		$14.10			$12.70			$10.15

		The stock volatility for each grant is determined based on a review of the experience of the weighted average of historical daily price changes of the Company’s common stock over the expected option term, and the risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for periods corresponding with the expected term of the option. The expected term is estimated based on historical option exercise activity.

		The following is a summary of stock option activity for the year ended December 31, 2020:

		Shares Under Options				Weighted Average Exercise Price (per share)				Weighted Average Remaining Contractual Life (in years)				Aggregate Intrinsic Value (in thousands)

Outstanding December 31, 2019			105,614			$	25.34
Granted			14,892				43.95
Exercised			(25,993	)			18.24
Outstanding December 31, 2020			94,513			$	30.22				6.03			$	1,548
Exercisable at December 31, 2020			79,621			$	27.66				5.39			$	1,508
Vested and expected to vest at December 31, 2020			94,513			$	30.22				6.03			$	1,548

		During the years ended December 31, 2020, 2019 and 2018, the total intrinsic value of all options exercised (i.e., the difference between the market price and the price paid by the employees to exercise the options) was approximately $0.8 million, $1.0 million and $1.2 million, respectively, and the total amount of consideration received from the exercise of these options was approximately $0.5 million, $0.7 million and $1.3 million, respectively. At its discretion, the Company allows option holders to surrender previously-owned common stock in lieu of paying the exercise price and withholding taxes. During the years ended December 31, 2020, 2019 and 2018, no shares were surrendered for this purpose.

		Restricted Stock Unit awards (“RSU’s”)

		The Company grants RSUs to its directors, executive officers and employees. The stock unit awards are subject to various time-based vesting requirements, and certain portions of these awards are subject to performance criteria of the Company. Compensation expense on these awards is recorded based on the fair value of the award at the date of grant, which is equal to the Company’s closing stock price, and is charged, to expense ratably during the service period. No compensation expense is taken on awards that do not become vested, and the amount of compensation expense recorded is adjusted based on management’s determination of the probability that these awards will become vested.

		The following table summarizes information about stock unit award activity during the year ended December 31, 2020:

		Restricted Stock Units				Weighted Average Award Date Fair Value
Outstanding at December 31, 2019			113,866			$	28.36
Awarded			25,312				48.83
Shares vested			(34,485	)			28.95
Forfeitures			(11,506	)			35.49
Outstanding at December 31, 2020			93,187			$	35.03

		At the Company’s discretion, RSU holders are given the option to net-share settle to cover the required minimum withholding tax, and the remaining amount is converted into the equivalent number of common shares. During the year ended December 31, 2020, 11,423 shares were redeemed for this purpose at an average market price of $49.91. During the years ended December 31, 2019 and 2018, 8,341 and 5,238 shares were redeemed for this purpose at an average market price of $33.69 and $27.60, respectively.

		The following summarizes the future share-based compensation expense the Company will record as the equity securities granted through December 31, 2020, vest (in thousands):

		Options				Restricted Stock Units				Total
2021		$	93			$	983			$	1,076
2022			-				588				588
2023			-				262				262
2024			-				23				23
Total		$	93			$	1,856			$	1,949