Stock Based Compensation

6 Months Ended

Jun. 30, 2016

Share Based Compensation

The Company has a Long Term Equity Incentive Plan (the “2006 Plan”), as approved by the Company’s stockholders in May 2006 and as amended in May 2015. The 2006 Plan allows for grants to directors and employees of non-qualified stock options, incentive stock options, stock appreciation rights, restricted stock, performance shares, performance units and other incentive awards (“Stock Awards”) up to an aggregate of 3,000,000 awards, each representing a right to buy a share of Core Molding Technologies common stock. Stock Awards can be granted under the 2006 Plan through the earlier of December 31, 2025, or the date the maximum number of available awards under the 2006 Plan have been granted.

Restricted Stock

The Company grants shares of its common stock to certain directors, officers, and key managers in the form of unvested stock (“Restricted Stock”). These awards are recorded at the market value of Core Molding Technologies’ common stock on the date of issuance and amortized ratably as compensation expense over the applicable vesting period.

The following summarizes the status of Restricted Stock and changes during the six months ended June 30, 2016:



	Number of Shares		Weighted Average Grant Date Fair Value
Unvested balance at December 31, 2015	112,907		$	16.86
Granted	121,092		12.55
Vested	(49,183	)	14.16
Forfeited	(3,898	)	16.10
Unvested balance at June 30, 2016	180,918		$	14.73

At June 30, 2016 and 2015, there was $2,090,000 and $1,634,000, respectively, of total unrecognized compensation expense related to Restricted Stock granted under the 2006 Plan. That cost is expected to be recognized over the weighted-average period of 1.7 years. Total compensation cost related to restricted stock grants for the three months ended June 30, 2016 and 2015 was $407,000 and $313,000, respectively, all of which was recorded to selling, general and administrative expense. Compensation cost related to restricted stock grants for the six months ended June 30, 2016 and 2015 was $582,000 and $422,000, respectively, all of which was recorded to selling, general and administrative expense.

Compensation expense for restricted stock is recorded at the fair value at the time of the grant over the vesting period of the restricted stock grant. The Company does not receive a tax deduction for restricted stock until the restricted stock vests. The tax deduction for restricted stock is based on the fair market value as of the vesting date. Tax expense due for the fair market value as of the grant date in excess of the vested restricted stock was $16,000 for the six months ended June 30, 2016. Tax benefits received for vested restricted stock in excess of the fair market value as of the grant date was $119,000 for the six months ended June 30, 2015.

During the six months ended June 30, 2016 and 2015, employees surrendered 10,590 and 9,989 shares, respectively, of the Company's common stock to satisfy income tax withholding obligations in connection with the vesting of restricted stock.