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Stock Option Plans | 3 Months Ended
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Mar. 31, 2019
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
Stock Option Plans | Stock Option Plans In 2004, the Company has established a stock incentive plan (the "Plan"), as amended. Under the Plan, options were granted at an exercise price not less than the market value of the common stock on the date of grant and expire ten years from the date of grant. Officer options vest ratably over four years following the grant and are charged to expense using the straight-line method over the vesting period. Director options vest immediately and are charged to expense as of the date of grant. The following table summarizes the amount and activity of each grant with outstanding unexercised options, the total value and variables used in the computation and the amount expensed and included in general and administrative expense in the Consolidated Statements of Operations for the three months ended March 31, 2019.
| Directors |  |
Grant date | 4/24/2009 | 5/7/2010 | 5/13/2011 | 5/4/2012 | 5/10/2013 | 5/9/2014 | 5/8/2015 | 5/6/2016 | 5/5/2017 | 5/11/2018 | Subtotals
Total grant | 32,500 |  | 32,500 |  | 32,500 |  | 35,000 |  | 35,000 |  | 30,000 |  | 35,000 |  | 32,500 |  | 27,500 |  | 27,500 |  | 320,000 |
Vested | 32,500 |  | 32,500 |  | 32,500 |  | 35,000 |  | 35,000 |  | 30,000 |  | 35,000 |  | 32,500 |  | 27,500 |  | 27,500 |  | 320,000 |
Exercised | 30,000 |  | 27,500 |  | 25,000 |  | 25,000 |  | 22,500 |  | 17,500 |  | 12,500 |  | 7,500 |  | — |  | 2,500 |  | 170,000 |
Forfeited | — |  | 2,500 |  | 2,500 |  | — |  | — |  | — |  | 2,500 |  | 2,500 |  | 5,000 |  | — |  | 15,000 |
Exercisable at March 31, 2019 | 2,500 |  | 2,500 |  | 5,000 |  | 10,000 |  | 12,500 |  | 12,500 |  | 20,000 |  | 22,500 |  | 22,500 |  | 25,000 |  | 135,000 |
Remaining unexercised | 2,500 |  | 2,500 |  | 5,000 |  | 10,000 |  | 12,500 |  | 12,500 |  | 20,000 |  | 22,500 |  | 22,500 |  | 25,000 |  | 135,000 |
Exercise price | $ | 32.68 |  | $ | 38.76 |  | $ | 41.82 |  | $ | 39.29 |  | $ | 44.42 |  | $ | 47.03 |  | $ | 51.07 |  | $ | 57.74 |  | $ | 59.41 |  | $ | 49.46 |  |
Volatility | 0.344 |  | 0.369 |  | 0.358 |  | 0.348 |  | 0.333 |  | 0.173 |  | 0.166 |  | 0.166 |  | 0.173 |  | 0.192 |  |
Expected life (years) | 6.0 |  | 5.0 |  | 5.0 |  | 5.0 |  | 5.0 |  | 5.0 |  | 5.0 |  | 5.0 |  | 5.0 |  | 5.0 |  |
Assumed yield | 4.54 | % | 4.23 | % | 4.16 | % | 4.61 | % | 4.53 | % | 4.48 | % | 4.54 | % | 3.75 | % | 3.45 | % | 3.70 | % |
Risk-free rate | 2.19 | % | 2.17 | % | 1.86 | % | 0.78 | % | 0.82 | % | 1.63 | % | 1.50 | % | 1.23 | % | 1.89 | % | 2.84 | % |
Total value at grant date | $ | 222,950 |  | $ | 287,950 |  | $ | 297,375 |  | $ | 257,250 |  | $ | 278,250 |  | $ | 109,500 |  | $ | 125,300 |  | $ | 151,125 |  | $ | 165,550 |  | $ | 169,400 |  | $ | 2,064,650 |
Expensed in previous years | 222,950 |  | 287,950 |  | 297,375 |  | 257,250 |  | 278,250 |  | 109,500 |  | 125,300 |  | 151,125 |  | 165,550 |  | 169,400 |  | 2,064,650 |
Expensed in 2019 | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Future expense | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
| Officers |  |  |  |
Grant date | 5/13/2011 | 5/4/2012 | 5/10/2013 | 5/9/2014 | 5/8/2015 | 5/6/2016 | 5/5/2017 | 5/11/2018 | Subtotal |  | Grand Totals
Total grant | 162,500 |  | 242,500 |  | 202,500 |  | 170,000 |  | 190,000 |  | 194,000 |  | 205,000 |  | 217,500 |  | 1,584,000 |  |  | 1,904,000 |
Vested | 118,750 |  | 107,500 |  | 171,875 |  | 168,125 |  | 140,625 |  | 96,375 |  | 51,250 |  | — |  | 854,500 |  |  | 1,174,500 |
Exercised | 103,750 |  | 92,455 |  | 129,375 |  | 46,126 |  | 20,625 |  | 3,750 |  | — |  | — |  | 396,081 |  |  | 566,081 |
Forfeited | 43,750 |  | 135,000 |  | 30,625 |  | 1,875 |  | 3,125 |  | 1,875 |  | — |  | — |  | 216,250 |  |  | 231,250 |
Exercisable at March 31, 2019 | 15,000 |  | 15,045 |  | 42,500 |  | 121,999 |  | 120,000 |  | 92,625 |  | 51,250 |  | — |  | 458,419 |  |  | 593,419 |
Remaining unexercised | 15,000 |  | 15,045 |  | 42,500 |  | 121,999 |  | 166,250 |  | 188,375 |  | 205,000 |  | 217,500 |  | 971,669 |  |  | 1,106,669 |
Exercise price | $ | 41.82 |  | $ | 39.29 |  | $ | 44.42 |  | $ | 47.03 |  | $ | 51.07 |  | $ | 57.74 |  | $ | 59.41 |  | $ | 49.46 |  |  |  |
Volatility | 0.330 |  | 0.315 |  | 0.304 |  | 0.306 |  | 0.298 |  | 0.185 |  | 0.170 |  | 0.177 |  |  |  |
Expected life (years) | 8.0 |  | 8.0 |  | 8.0 |  | 7.0 |  | 7.0 |  | 7.0 |  | 7.0 |  | 7.0 |  |  |  |
Assumed yield | 4.81 | % | 5.28 | % | 5.12 | % | 4.89 | % | 4.94 | % | 3.80 | % | 3.50 | % | 3.75 | % |  |  |
Risk-free rate | 2.75 | % | 1.49 | % | 1.49 | % | 2.17 | % | 1.89 | % | 1.55 | % | 2.17 | % | 2.94 | % |  |  |
Gross value at grant date | $ | 1,366,625 |  | $ | 1,518,050 |  | $ | 1,401,300 |  | $ | 1,349,800 |  | $ | 1,584,600 |  | $ | 1,136,840 |  | $ | 1,324,300 |  | $ | 1,313,700 |  | $ | 10,995,215 |  |  | $ | 13,059,865 |
Estimated forfeitures | 367,937 |  | 845,100 |  | 211,925 |  | 14,887 |  | 26,062 |  | 86,628 |  | 91,642 |  | 83,157 |  | 1,727,338 |  |  | 1,727,338 |
Expensed in previous years | 998,688 |  | 672,950 |  | 1,189,375 |  | 1,334,913 |  | 1,322,596 |  | 700,128 |  | 513,600 |  | 205,088 |  | 6,937,338 |  |  | 9,001,988 |
Expensed in 2019 | — |  | — |  | — |  | — |  | 176,957 |  | 65,637 |  | 77,040 |  | 76,908 |  | 396,542 |  |  | 396,542 |
Future expense | — |  | — |  | — |  | — |  | 58,985 |  | 284,447 |  | 642,018 |  | 948,547 |  | 1,933,997 |  |  | 1,933,997 |
Weighted average term of remaining future expense (in years) | 2.4 |  |  |  |  |  |  |  |  |  |  |
The table below summarizes the option activity for the three months ended March 31, 2019:
|  | Number of Shares |  | Weighted Average Exercise Price per share |  | Aggregate Intrinsic Value
Outstanding at January 1 |  | 1,114,169 |  |  | $ | 52.40 |  |  | $ | 543,662 |
Granted |  | — |  |  | — |  |  | — |
Exercised |  | — |  |  | — |  |  | — |
Expired/Forfeited |  | (7,500 | ) |  | 56.07 |  |  |
Outstanding at March 31 |  | 1,106,669 |  |  | 52.38 |  |  | 2,056,820 |
Exercisable at March 31 |  | 593,419 |  |  | 50.86 |  |  | 1,627,519 |
The intrinsic value measures the price difference between the options’ exercise price and the closing share price quoted by the New York Stock Exchange as of the date of measurement. The intrinsic value for shares exercised during the period was calculated by using the closing share price on the date of exercise. At March 29, 2019, the final trading day of the first quarter, the closing share price of $51.37 was lower than the exercise price of the 210,875 and 227,500 outstanding options granted in 2016 and 2017, respectively. The weighted average remaining contractual life of the Company’s outstanding and exercisable options is 7.0 years and 6.0 years, respectively.

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- 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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -URI http://asc.fasb.org/subtopic&trid=2208855 + Details
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