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Stock-Based Compensation and Stock Repurchases | 9 Months Ended
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Sep. 30, 2017
Stock-Based Compensation and Stock Repurchases [Abstract] |
Stock-Based Compensation and Stock Repurchases | Note 15 – Stock-Based Compensation and Stock Repurchases Employee and Director Stock Option Plan The Company may grant stock options and other share-based payment awards of our Class A Common Stock to eligible employees, directors, and consultants under the 2010 Stock Incentive Plan (the “Plan”). The aggregate total number of shares of the Class A Common Stock authorized for issuance under the Plan is 1,250,000. As of September 30, 2017, we had 302,540 shares remaining for future issuances. Since the adoption of the Plan in 2010, the Company has granted awards primarily in the form of stock options. In the 1 st quarter of 2016, the Company started to award restricted stock units (“RSUs”) to directors and certain members of management. Stock options are generally granted at exercise prices equal to the grant-date market prices and typically expire no later than five years from the grant date. In contrast to a stock option where the grantee buys the Company’s share at an exercise price determined on grant date, an RSU entitles the grantee to receive one share for every RSU based on a vesting plan. At the discretion of our Compensation and Stock Options Committee, the vesting period of stock options and RSUs granted to employees ranges from zero to four years. Grants to directors and certain executive officers are subject to Board approval. At the time the options are exercised or RSUs vest, at the discretion of management, we will issue treasury shares or make a new issuance of shares to the option or RSU holder. Stock Options We estimate the grant-date fair value of our stock options using the Black-Scholes option-valuation 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. We expense the estimated grant-date fair values of options over the vesting period on a straight-line basis. Based on our historical experience, the “deemed exercise” of expiring in-the-money options and the relative market price to strike price of the options, we have not hereto estimated any forfeitures of vested or unvested options. ﻿ For the nine months ended September 30, 2017 and 2016, respectively, the weighted average assumptions used in the option-valuation model were as follows: ﻿ ﻿
﻿ |  |  |
﻿ | Nine Months Ended September 30
﻿ | 2017 |  | 2016
﻿Stock option exercise price | $ | 15.94 | 11.87
﻿Risk-free interest rate |  | 1.66% | 1.20%
﻿Expected dividend yield |  | -- | --
﻿Expected option life in years |  | 3.75 | 3.75
﻿Expected volatility |  | 24.95% | 25.01%
﻿Weighted average fair value | $ | 3.45 | 2.49
For the quarter ended September 30, 2017 and 2016, we recorded compensation expense of $86,000 and $74,000, respectively. For the nine months ended September 30, 2017 and 2016, we recorded compensation expense of $223,000 and $264,000, respectively. At September 30, 2017, the total unrecognized estimated compensation expense related to non-vested stock options was $915,000, which we expect to recognize over a weighted average vesting period of 1.93 years. The intrinsic, unrealized value of all options outstanding, vested and expected to vest, at September 30, 2017 was $3.0 million, of which 79.5% are currently exercisable. ﻿ The following table summarizes the information of options outstanding and exercisable as of September 30, 2017 and December 31, 2016:
﻿ |  |  |  |  |  |  |  |  |
﻿ |  | Outstanding Stock Options - Class A Shares
﻿ |  | Number of Options |  | Weighted Average Exercise Price |  | Weighted Average Remaining Years of Contractual Life | Aggregate Intrinsic Value
﻿Balance - December 31, 2015 |  | 486,565 |  | $ | 8.68 |  | 2.89 | $ | 2,188,011
﻿Granted |  | 169,327 |  |  | 11.87 |  |  |  |
﻿Exercised |  | (46,815) |  |  | 9.50 |  |  | $ | 220,002
﻿Forfeited |  | (74,000) |  |  | 7.02 |  |  |  |
﻿Balance - December 31, 2016 |  | 535,077 |  | $ | 9.84 |  | 2.61 | $ | 3,615,191
﻿Granted |  | 169,762 |  |  | 15.94 |  |  |  |
﻿Exercised |  | (107,750) |  |  | 8.94 |  |  | $ | 595,873
﻿Forfeited |  | (2,500) |  |  | 6.23 |  |  |  |
﻿Balance - September 30, 2017 |  | 594,589 |  | $ | 11.76 |  | 3.02 | $ | 3,007,071
﻿ |  |  |  |  |  |  |  |  |
Restricted Stock Units We estimate the grant-date fair values of our RSUs using the Company’s stock price at grant-date and record such fair values as compensation expense over the vesting period on a straight-line basis. The following table summarizes the status of the RSU s granted to-date as of September 30, 2017: ﻿
﻿ |  |  |  |  |  |  |  |  |  |  |
﻿ |  |  | Outstanding Restricted Stock Units
﻿ |  |  | RSU Grants (in units) |  | Total |  | Vested, |  | Unvested,
﻿Grant Date |  |  | Directors |  | Management |  | Grants |  | September 30, 2017 |  | September 30, 2017
﻿March 10, 2016 |  |  | 35,147 |  | 27,381 |  | 62,528 |  | 41,992 |  | 20,536
﻿April 11, 2016 |  |  | -- |  | 5,625 |  | 5,625 |  | 1,406 |  | 4,219
﻿March 23, 2017 |  |  | 30,681 |  | 32,463 |  | 63,144 |  | -- |  | 63,144
﻿August 29, 2017 |  |  | -- |  | 7,394 |  | 7,394 |  | -- |  | 7,394
﻿Total |  |  | 65,828 |  | 72,863 |  | 138,691 |  | 43,398 |  | 95,293
﻿ These RSU awards vest 25% at the end of each year for 4 years (in the case of members of management) and vest 100% on the first business day of the year following in which such RSUs were granted (in the case of directors). For the quarter ended September 30, 2017 and 2016, we recorded compensation expense of $182,000 and $130,000, respectively. For the nine months ended September 30, 2017 and 2016, we recorded compensation expense of $482,000 and $290,000, respectively. The total un recognized compensation expense related to the non-vested RSUs was $1.0 million as of September 30, 2017, which we expect to recognize over a weighted average vesting period of 1.0 year. Stock Repurchase Program On March 2, 2017, the Company's Board of Directors authorized management, at its discretion, to spend up to an aggregate of $25.0 million to acquire shares of Reading’s Class A Common Stock. The previously approved stock repurchase program, which allowed management to spend up to an aggregate of $10.0 million to acquire shares of Reading’s Non-Voting Common Stock, was completed as of December 31, 2016. The repurchase program allows Reading to repurchase its shares in accordance with the requirements of the SEC on the open market, in block trades and in privately negotiated transactions, depending on market conditions and other factors. All purchases are subject to the availability of shares at prices that are acceptable to Reading, and accordingly, no assurances can be given as to the timing or number of shares that may ultimately be acquired pursuant to this authorization. Under the stock repurchase program, the Company has reacquired 403,156 shares of Class A Common Stock for $6.4 million at an average price of $15.92 per share (excluding transaction costs) to-date. This leaves $18.6 million available under the March 2, 2017 program for repurchase as of September 30, 2017.

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- 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 -URI http://asc.fasb.org/topic&trid=2228938 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -URI http://asc.fasb.org/subtopic&trid=2208855 + Details
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