XML 28 R17.htm IDEA: XBRL DOCUMENT v3.8.0.1
Stock Based Compensation
 9 Months Ended
Sep. 30, 2017
Share-based Compensation [Abstract]  
Stock Based Compensation
Share Based Compensation
The Company has a Long Term Equity Incentive Plan, as approved by the Company’s stockholders in May 2006 and as amended in May 2015 (the “2006 Plan”). 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 nine months ended September 30, 2017:
 
Number of
Shares
 
Weighted Average
Grant Date
Fair Value
Unvested balance at December 31, 2016
158,261

 
$
14.55

Granted
84,643

 
19.17

Vested
(95,717
)
 
15.12

Forfeited
(6,092
)
 
17.93

Unvested balance at September 30, 2017
141,095

 
$
16.84


At September 30, 2017 and 2016, there was $1,871,000 and $1,580,000, 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 1.6 years. Total compensation cost related to restricted stock grants for the three months ended September 30, 2017 and 2016 was $270,000 and $197,000, respectively, all of which was recorded to selling, general and administrative expense. Compensation cost related to restricted stock grants for the nine months ended September 30, 2017 and 2016 was $1,061,000 and $778,000, respectively, all of which was recorded to selling, general and administrative expense.

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 $136,000 for the nine months ended September 30, 2017. 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 nine months ended September 30, 2016.

During the nine months ended September 30, 2017 and 2016, employees surrendered 19,533 and 10,590 shares, respectively, of the Company's common stock to satisfy income tax withholding obligations in connection with the vesting of restricted stock.