11. SHARE-BASED COMPENSATION PLANS:

The Company has one active stock incentive plan for employees and directors, the 2007 Stock Incentive Plan, which provides for awards of stock options to purchase shares of common stock, stock appreciation rights, restricted and unrestricted shares of common stock, restricted stock units (“RSUs”) and performance share awards (“PSAs”). In addition, the Company has one inactive stock option plan, the 1995 Stock Options Plan for Nonemployee Directors, under which previously granted options remain outstanding. The plans provide that options become exercisable according to vesting schedules, which range from immediate to ratably over a 60-month period. Options terminate 10 years from the date of grant. The plans also provide for other equity instruments, such as RSUs and PSAs, which grant the right to receive a specified number of shares over a specified period of time. RSUs are service-based awards and vest according to vesting schedules, which range from immediate to ratably over a three-year period. PSAs are service-based awards with a market-based vesting condition. Vesting of the market-based PSAs is dependent upon the performance of the market price of the Company’s stock relative to a comparator group of companies and ranges from two to three years. The following summarizes share-based compensation expense recorded:


	Year ended December 31,
	2014		2013		2012
	(in thousands)
Cost of sales	$	337	$	662	$	432
Selling, general and administrative expenses		2,609		2,398		2,616

Total	$	2,946	$	3,060	$	3,048

As of December 31, 2014, unrecognized compensation expense related to the unvested portion of the Company’s RSUs and PSAs was $4.1 million, which is expected to be recognized over a weighted average period of 1.7 years.

There were 643,393 shares of common stock available for future issuance under the Company’s stock compensation plans at December 31, 2014.

Stock Options Awards

A summary of status of the Company’s stock options as of December 31, 2014 and changes during the three years then ended is presented below:


	Options			Weighted Average Exercise Price		Weighted Average Remaining Contractual Life		Aggregate Intrinsic Value
						(in years)		(in thousands)
Balance, December 31, 2011		71,597			21.26
Options granted		—			—
Options exercised		(24,597	)		17.58
Options cancelled		—			—

Balance, December 31, 2012		47,000			23.19
Options granted		—			—
Options exercised		(7,000	)		10.31
Options cancelled		—			—

Balance, December 31, 2013		40,000			25.44
Options granted		—			—
Options exercised		(2,000	)		14.00
Options cancelled		—			—

Balance, December 31, 2014		38,000			26.05

Exercisable and Outstanding, December 31, 2014		38,000			26.05		3.68	$	424

The total intrinsic value, defined as the difference between the current market value and the grant price, of options exercised during the years ended December 31, 2014, 2013 and 2012 was $43,000, $0.1 million and $0.1 million, respectively.

The following table summarizes information about stock options outstanding at December 31, 2014:


Options Outstanding					Options Exercisable
Exercise Price Per Share	Number of Options		Weighted Average Remaining Contractual Life (years)	Weighted Average Exercise Price Per Share	Number of Options		Weighted Average Exercise Price Per Share
$22.07		4,000	0.36	22.07		4,000	22.07
$24.15		24,000	5.25	24.15		24,000	24.15
$28.31		4,000	1.16	28.31		4,000	28.31
$34.77		6,000	1.28	34.77		6,000	34.77

		38,000	3.68	26.05		38,000	26.05

There were no options granted during 2014, 2013 or 2012.

Restricted Stock Units and Performance Awards

The Company estimates the fair value of Restricted Stock Units (“RSUs”) and Performance Stock Awards (“PSAs”) using the value of the Company’s stock on the date of grant, with the exception of market-based PSAs, for which a Monte Carlo simulation model is used. The assumptions used in the Monte Carlo simulation model for PSAs granted during each year were:


	2014	2013	2012
Expected stock price volatility	23.7% - 65.0%	24.6% - 60.1%	33.3% - 75.7%
Risk free interest rate	0.61%	0.41%	0.24%
Expected dividend yield	0%	0%	0%

A summary of status of the Company’s RSUs and PSAs as of December 31, 2014 and changes during the three years then ended is presented below:


	Number of RSUs and PSAs (1)			Weighted Average Grant Date Fair Value
Unvested RSUs and PSAs at December 31, 2011		193,981		$	24.41
RSUs and PSAs granted		115,306			29.06
Unvested RSUs and PSAs cancelled		(39,306	)		28.44
RSUs and PSAs vested		(26,840	)		23.13

Unvested RSUs and PSAs at December 31, 2012		243,141			26.11
RSUs and PSAs granted		117,966			34.24
Unvested RSUs and PSAs cancelled		(16,002	)		27.45
RSUs and PSAs vested		(88,018	)		23.37

Unvested RSUs and PSAs at December 31, 2013		257,087			30.69
RSUs and PSAs granted		87,353			41.76
Unvested RSUs and PSAs cancelled		(32,756	)		32.36
RSUs and PSAs vested (2)		(80,469	)		25.81

Unvested RSUs and PSAs at December 31, 2014		231,215		$	36.34

(1)	The number of shares disclosed in this table are at the target level of 100%.

(2)	13,161 additional shares were vested for performance share awards that were granted in 2011 for the three-year performance period ended December 31, 2013, based on achievement of an actual payout percentage of 143%.

The unvested balance of RSUs and PSAs at December 31, 2014 includes approximately 185,000 PSAs included at a target level. The vesting of these awards is subject to the achievement of specified market-based conditions, and the actual number of common shares that will ultimately be issued will be determined by multiplying this number of PSAs by a payout percentage ranging from 0% to 200%.

The total fair value of RSUs and PSAs vested during the years ended December 31, 2014, 2013, and 2012 was $3.5 million, $2.1 million, and $0.6 million, respectively.

Stock Awards

For the years ended December 31, 2014, 2013 and 2012, stock awards were granted to non-employee directors, which vested immediately upon issuance, as follows: 9,150 shares; 4,912 shares; and 4,807 shares, respectively. The Company recorded compensation expense based on the fair market value per share of the awards on the grant dates of $36.00 and $36.41 in 2014, $27.49 in 2013, and $23.40 in 2012.