Stock Compensation | 3 Months Ended |
Mar. 31, 2014 |
Stock Compensation [Abstract] | ' |
Stock Compensation | ' |
14. Stock Compensation |
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Overview |
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The Company has stock option and stock incentive plans for employees and non-employee Directors that provide for grants of restricted stock awards (“RSAs”), restricted stock units (“RSUs”), performance stock units (“PSUs”), and options to purchase shares of Company common stock at exercise prices generally equal to the fair values of such stock at the dates of grant. The Company also maintains a shareholder approved Employee Stock Purchase Plan (the “ESPP”) for the benefit of its employees. The ESPP allows eligible employees to purchase common stock on a regular basis at the lower of 85% of the market price at the beginning or end of each offering period. |
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Equity Grants |
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During the three months ended March 31, 2014 the Compensation Committee of the Company’s Board of Directors authorized awards from approved stock incentive plans of RSUs to certain employees and RSAs and PSUs to certain Company officers, which assuming that performance under the PSUs were to be achieved at target levels, together totaled 326,000 shares and had an aggregate market value of $3.3 million. The PSUs granted in 2014 represent the right to receive from 50% to 150% of the target number of shares of common stock. The performance component of PSU awards granted in 2014 is based on attaining specified levels of adjusted EBITDA, as defined in the PSU grant documents, for the 2014 calendar year. The Company currently believes that achievement of the performance component is probable, and will reevaluate this likelihood on a quarterly basis. |
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During the three months ended March 31, 2013 the Compensation Committee of the Company’s Board of Directors authorized awards from approved stock incentive plans of RSAs and PSUs to certain Company officers which, assuming that performance under the PSUs were to be achieved at target levels, together totaled 324,000 shares of common stock and had an aggregate market value of $1.9 million. Shares issued under the 2013 PSU awards were earned at approximately 115% of the target number of shares. |
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The Compensation Committee of the Company’s Board of Directors authorized from approved stock incentive plans, grants of stock options to purchase a total of 162,000 shares to certain Company officers during both the three months ended March 31, 2014 and 2013. The exercise prices of the options were equal to the closing stock prices on their respective grant dates. |
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Employees purchased common stock totaling 59,000 and 49,000 shares in the three months ended March 31, 2014 and 2013, respectively, through the Company’s ESPP. |
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Stock Compensation Expense |
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The following weighted‑average assumptions were used to determine the fair value of options: |
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| Three Months Ended | | Three Months Ended |
| 31-Mar-14 | | 31-Mar-13 |
| Stock Options | | ESPP Options | | Stock Options | | ESPP Options |
Expected life of options | | 4.25 Years | | | .50 Years | | | 4.25 Years | | | .50 Years |
Expected stock price volatility | | 0.55 | | | 0.34 | | | 0.60 | | | 0.43 |
Dividends | | 1.10% | | | 0.99% | | | 1.91% | | | 1.61% |
Risk-free interest rate | | 1.19% | | | 0.10% | | | 0.70% | | | 0.16% |
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The following table summarizes total stock compensation expenses prior to the capitalization of amounts into deferred preservation and inventory costs (in thousands): |
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| Three Months Ended | | | | | | |
| March 31, | | | | | | |
| 2014 | | 2013 | | | | | | |
RSA, RSU, and PSU expense | $ | 712 | | $ | 635 | | | | | | |
Stock option and ESPP option expense | | 207 | | | 211 | | | | | | |
Total stock compensation expense | $ | 919 | | $ | 846 | | | | | | |
Included in the total stock compensation expense, as applicable in each period, were expenses related to RSAs, RSUs, PSUs, and stock options issued in each respective year, as well as those issued in prior periods that continued to vest during the period, and compensation related to the Company’s ESPP. These amounts were recorded as stock compensation expense and were subject to the Company’s normal allocation of expenses to deferred preservation costs and inventory costs. The Company capitalized $74,000 and $64,000 in the three months ended March 31, 2014 and 2013, respectively, of the stock compensation expense into its deferred preservation costs and inventory costs. |
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As of March 31, 2014 the Company had total unrecognized compensation costs of $5.3 million related to RSAs, RSUs, and PSUs, and $1.0 million related to unvested stock options before considering the effect of expected forfeitures. As of March 31, 2014 this expense is expected to be recognized over a weighted-average period of 1.69 years for RSAs, 1.65 years for RSUs, 1.48 years for PSUs, and 2.25 years for stock options. |
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