Share-based Compensation

3 Months Ended

Mar. 31, 2015

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

8.	Share-based Compensation

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 Option Plan for Nonemployee Directors, under which previously granted options remain outstanding.

The Company recognizes compensation cost as service is rendered based on the fair value of the awards. The following table summarizes share-based compensation expense recorded (in thousands):


	Three Months Ended March 31,
	2015		2014
Cost of sales	$	81	$	11
Selling, general and administrative expenses		569		343

Total	$	650	$	354

As of March 31, 2015, unrecognized compensation expense related to the unvested portion of the Company’s RSUs and PSAs was $3.4 million, which is expected to be recognized over a weighted average period of 1.5 years.

Stock Option Awards

A summary of the status of the Company’s stock options as of March 31, 2015 and changes during the three months then ended is presented below:


	Options Outstanding		Weighted Average Exercise Price per Share		Weighted Average Remaining Contractual Life		Aggregate Intrinsic Value
							(In thousands)
Balance, January 1, 2015		38,000	$	26.05
Options granted		—		—
Options exercised		—		—
Options cancelled		—		—

Balance, March 31, 2015		38,000		26.05		3.43	$	4

Exercisable, March 31, 2015		38,000		26.05		3.43	$	4

Restricted Stock Units and Performance Stock Awards

A summary of the status of the Company’s RSUs and PSAs as of March 31, 2015 and changes during the three months then ended is presented below:


	Number of RSUs and PSAs			Weighted Average Grant Date Fair Value
Balance, January 1, 2015		231,215		$	36.34
RSUs and PSAs granted		—			—
RSUs and PSAs vested		(49,403	)		30.01
RSUs and PSAs canceled		(18,646	)		31.24

Balance, March 31, 2015		163,166			38.83

RSUs and PSAs are measured at the estimated fair value on the date of grant. 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 that vest over a three-year period and have a market-based payout condition. Vesting of the market-based PSAs is dependent upon the performance of the market price of the Company’s stock relative to a peer group of companies. The unvested balance of RSUs and PSAs at March 31, 2015 includes approximately 140,000 PSAs at a target level of performance; 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%.

- 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.

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