Stock Based Compensation

3 Months Ended

Mar. 31, 2019

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 Awards

The Company grants shares of its common stock to certain directors, officers, key managers and employees in the form of unvested stock and units (“Restricted Awards”). 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, which is typically three years. The Company adjusts compensation expense for actual forfeitures, as they occur.

The following summarizes the status of Restricted Stock and changes during the three months ended March 31, 2019:



	Number of Shares		Weighted Average Grant Date Fair Value
Unvested balance at December 31, 2018	349,885		$	10.62
Granted	19,317		7.77
Vested	(8,997	)	17.97
Forfeited	(670	)	22.68
Unvested balance at March 31, 2019	359,535		$	10.26

At March 31, 2019 and 2018, there was $2,349,000 and $2,021,000, respectively, of total unrecognized compensation expense, net of estimated forfeitures, related to Restricted Awards granted under the 2006 Plan. That cost is expected to be recognized over the weighted-average period of 1.6 years. Total compensation cost, net of estimated forfeitures, related to restricted award grants for the three months ended March 31, 2019 and 2018 was $350,000 and $331,000, respectively, all of which was recorded to selling, general and administrative expense.

During the three months ended March 31, 2019 and 2018, employees surrendered zero shares of the Company's common stock to satisfy income tax withholding obligations in connection with the vesting of restricted awards.