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Stock Based Compensation
 3 Months Ended
Mar. 31, 2017
Share-based Compensation [Abstract]  
Stock Based Compensation
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, net of estimated forfeitures, and amortized ratably as compensation expense over the applicable vesting period, which is typically three years. The Company has applied forfeiture rates, estimated based on historical experience, of 3.5%-6.5% to the restricted stock fair values. These estimated forfeiture rates are applied to grants based on their remaining vesting term and may be revised in subsequent periods if actual forfeitures differ from these estimates.
The following summarizes the status of Restricted Stock and changes during the three months ended March 31, 2017:
 
Number of
Shares
 
Weighted Average
Grant Date
Fair Value
Unvested balance at December 31, 2016
158,261

 
$
14.55

Granted
631

 
15.85

Vested
(24,958
)
 
13.26

Forfeited
—

 
—

Unvested balance at March 31, 2017
133,934

 
$
14.75


At March 31, 2017 and 2016, there was $1,124,000 and $1,025,000, respectively, of total unrecognized compensation expense, net of estimated forfeitures, related to Restricted Stock granted under the 2006 Plan. That cost is expected to be recognized over the weighted-average period of 1.4 years. Total compensation cost, net of estimated forfeitures, related to restricted stock grants for the three months ended March 31, 2017 and 2016 was $265,000 and $175,000, 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, net of estimated forfeitures, 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 benefits received for vested restricted stock in excess of the fair market value as of the grant date were $26,000 and zero for the three months ended March 31, 2017 and 2016, respectively.
During the three months ended March 31, 2017 and 2016, employees surrendered 1,597 and zero shares, respectively, of the Company's common stock to satisfy income tax withholding obligations in connection with the vesting of restricted stock.