XML 145 R10.htm IDEA: XBRL DOCUMENT
v2.4.1.9

Stock Based Compensation And Employee Stock Option Plan | 12 Months Ended
--- | ---
Dec. 31, 2014
Stock-Based Compensation And Employee Stock Option Plan [Abstract] |
Stock Based Compensation And Employee Stock Option Plan | Note 3 – Stock Based Compensation and Employee Stock Option Plan Stock Based Compensation As part of his compensation package, Mr. James J. Cotter, Sr. our now deceased Chairman of the Board and Chief Executive Officer, was granted $1,200,000, $750,000, and $950,000, of restricted Class A Non-voting Common Stock (“Class A Stock”) for each of the years ended December 31, 2014, 2013, and 2012, respectively. The 2014, 2013, and 2012 stock grants of 160,643, 125,209, and 217,890 shares, respectively, were granted with stock grant prices of $7.47, $5.99, and $4.36, respectively. Mr. Cotter, Sr.’s stock compensation was granted fully vested with a five-year restriction on sale. As of December 31, 2014, the 2014 stock grant had not yet been issued. During 2014, we issued to Mr. Cotter, Sr. 125,209 of Class A Stock for his 2013 vested stock grants which had a stock grant price of $5.99 and a grant date fair value of $750,000. During 2012, we issued 9,680 shares as a one-time stock grant of Class A Stock to our employees valued at $44,000. During the years ended December 31, 2014, 2013, and 2012, we recorded compensation expense of $1,200,000, $750,000, and $994,000, respectively, for the vesting of all our restricted stock grants. The following table details the grants and vesting of restricted stock to our employees (dollars in thousands):
| Non-Vested Restricted Stock |  | Weighted Average Fair Value at Grant Date
Outstanding – January 1, 2012 | -- | $ | --
Granted | 227,570 |  | 994
Vested | (227,570) |  | (994)
Outstanding – December 31, 2012 | -- | $ | --
Granted | 125,209 |  | 750
Vested | (125,209) |  | (750)
Outstanding – December 31, 2013 | -- | $ | --
Granted | 160,643 |  | 1,200
Vested | (160,643) |  | (1,200)
Outstanding – December 31, 2014 | -- | $ | --
Employee Stock Option Plan We have a long-term incentive stock option plan that provides for the grant to eligible employees, directors, and consultants of incentive or nonstatutory options to purchase shares of our Class A Stock. Our 1999 Stock Option Plan expired in November 2009, and was replaced by our new 2010 Stock Incentive Plan, which was approved by the holders of our Class B Voting Common Stock in May 2010. FASB ASC 718-10 – Stock Compensation (“ASC 718-10”) requires that all stock-based compensation be recognized as an expense in the financial statements and that such costs be measured at the fair value of the award. We estimate the valuation of stock based compensation using a Black-Scholes option-pricing model. When our tax deduction from an option exercise exceeds the compensation cost resulting from the option, a tax benefit is created. ASC 718-10 requires that excess tax benefits related to stock option exercises be reflected as financing cash inflows instead of operating cash inflows. For the years ended December 31, 2014, 2013, and 2012, there was no impact to the consolidated statements of cash flows because there were no material recognized tax benefits during these periods. ASC 718-10 requires companies to estimate forfeitures. Based on our historical experience, we did not estimate any forfeitures for the options granted during the years ended December 31, 2013, and 2012. However during 2014, we had forfeitures of 64,000 options for the Class A common stock as a result of employee terminations. It is the company’s policy, unless adjusted by the Compensation Committee, to give the terminated employees three months from their termination date to exercise their options. If the options are not exercised within the three month period, they are considered forfeited. In accordance with ASC 718-10, we estimate the fair value of our options using the Black-Scholes option-pricing model, which takes into account assumptions such as the dividend yield, the risk-free interest rate, the expected stock price volatility, and the expected life of the options. The dividend yield is excluded from the calculation, as it is our present intention to retain all earnings. We estimated the expected stock price volatility based on our historical price volatility measured using daily share prices back to the inception of the Company in its current form beginning on December 31, 2001. We estimate the expected option life based on our historical share option exercise experience during this same period. We expense the estimated grant date fair values of options issued on a straight-line basis over their vesting periods. For the 80,000 175,000 and 206,000 options granted during 2014, 2013 and 2012 respectively, we estimated the fair value of these options at the date of grant using a Black-Scholes option-pricing model with the following weighted average assumptions:
| 2014 | 2013
Stock option exercise price | $8.56 | $6.19
Risk-free interest rate | 2.51% | 2.25%
Expected dividend yield | -- | --
Expected option life | 5.00 yrs. | 5.00 yrs.
Expected volatility | 31.33% | 31.80%
Weighted average fair value | $2.76 | $1.98
Using the above assumptions and based on our use of the modified prospective method, we recorded $146,000, $199,000, and $285,000 in compensation expense for the total estimated grant date fair value of stock options that vested during the years ended December 31, 2014, 2013, and 2012, respectively. At December 31, 2014 total unrecognized estimated compensation cost related to non-vested stock options granted was $446,000 which is expected to be recognized over a weighted average vesting period of 2.50 years. For the stock options exercised during the years ended December 31, 2014, 2013 and 2012 we issued 157,600, 62,500 and 95,000 shares of Class A Stock for cash to employees of the corporation under this stock based compensation plan with weighted average exercise prices of $6.21, $3.98 and $4.68 respectively. The total realized value of stock options exercised during the years ended December 31, 2014 and 2013 was $321,200 and $133,000, respectively. We recorded cash received from stock options exercised of $978,000 and $248,000 during the years ended December 31, 2014 and 2013, respectively. In 2013, 75,000 options were exercised having a realized value of $124,000 for which we did not receive any cash but the employee elected to receive the net incremental number of in-the-money shares of 53,136 based on an exercise price of $4.01 and a market price of $5.66. In 2012, 41,000 options were exercised having a realized value of $103,000 for which we did not receive cash but the employee elected to receive the net incremental number of in-the-money shares of 15,822 based on an exercise price of $4.01 and a market price of $6.53. At December 31, 2014, the intrinsic, unrealized value of all options outstanding, vested and expected to vest, was $ 4,197,000 of which 59.0% were currently exercisable. Pursuant to both our 1999 Stock Option Plan and our 2010 Stock Incentive Plan, all stock options expire within ten years of their grant date. The aggregate total number of shares of Class A Stock and Class B voting common stock authorized for issuance under our 2010 Stock Option Plan is 1,250,000. At the time that options are exercised, at the discretion of management, we will either issue treasury shares or make a new issuance of shares to the employee or board member. Dependent on the grant letter to the employee or board member, the required service period for option vesting is between zero and four years. We had the following stock options outstanding and exercisable:
|  |  | Weighted |  |  |  | Weighted Average
| Common Stock | Average Exercise | Common Stock |  | Price of
| Options | Price of Options | Exercisable |  | Exercisable
| Outstanding | Outstanding | Options |  | Options
| Class A | Class B | Class A | Class B | Class A | Class B | Class A | Class B
Outstanding-January 1, 2012 | 622,350 | 185,100 | $ | 5.65 | $ | 9.90 | 544,383 | 167,550 | $ | 5.86 | $ | 10.05
Granted | 206,000 | -- |  | 5.94 | $ | -- | -- | -- | -- | -- | -- | --
Exercised | (136,000) | -- |  | 4.68 | $ | -- | -- | -- | -- | -- | -- | --
Expired | (20,000) | -- |  | 3.75 | $ | -- | -- | -- | -- | -- | -- | --
Outstanding - December 31, 2012 | 672,350 | 185,100 | $ | 6.24 | $ | 9.90 | 546,350 | 185,100 | $ | 6.26 | $ | 9.90
Granted | 175,000 | -- |  | 6.19 |  | -- | -- | -- |  | -- |  | --
Exercised | (137,500) | -- |  | 4.00 |  | -- | -- | -- |  | -- |  | --
Outstanding - December 31, 2013 | 709,850 | 185,100 | $ | 6.66 | $ | 9.90 | 490,350 | 185,100 | $ | 6.85 | $ | 9.90
Granted | 80,000 | -- |  | 8.56 |  | -- | -- | -- |  | -- |  | --
Exercised | (157,600) | -- |  | 6.21 |  | -- | -- | -- |  | -- |  | --
Expired | (64,000) | -- |  | 6.83 |  | -- | -- | -- |  | -- |  | --
Outstanding - December 31, 2014 | 568,250 | 185,100 | $ | 6.88 | $ | 9.90 | 348,000 | 185,100 | $ | 6.82 | $ | 9.90
The weighted average remaining contractual life of all options outstanding, vested and expected to vest, at December 31, 2014 and 2013 were approximately 2.44 and 4.70 years, respectively. The weighted average remaining contractual life of the exercisable options outstanding at December 31, 2014 and 2013 was approximately 3.11 and 3.63 years, respectively.

X
- Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsSharebasedPaymentsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6406099&loc=d3e25284-112666 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 40 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6418621&loc=d3e17540-113929 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5444-113901 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 14 + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration