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## (j) intangible assets 

Intangible assets with a definite life are amortized on a straight-line basis, with estimated useful lives ranging from 5 to 14 years. Intangible assets with a definite life are tested for impairment whenever events or circumstances indicate that their carrying values may not be recoverable. 

## (k) revenue recognition 

the Company recognizes revenue at the time of shipment when title and risk of loss have passed to the customer, persuasive evidence of an arrangement exists, performance of its obligation is complete, its price to the buyer is fixed or determinable, and the Company is reasonably assured of collection. If a loss is anticipated on any contract, a provision for the entire loss is made immediately. Determination of these criteria, in some cases, requires management’s judgment. 

## (l) Share-based compensation 

When accounting for equity instruments exchanged for employee services, share-based compensation cost is measured at the grant date, based on the calculated fair value of the award, and is recognized as an expense over the employee’s requisite service period (generally the vesting period of the equity grant). 

the Company issues share-based awards through several plans that are described in detail in note 12. the compensation cost charged against income for those plans is included in selling, general & administrative expenses as follows (in thousands): 

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the compensation expense for stock options granted during the three-year period ended December 31, 2014, was determined as the fair value of the options using the Black scholes valuation model. the 2013 compensation expense for stock options granted prior to January 1, 2012, was determined as the fair value of the options using a lattice-based option valuation model. the assumptions are noted as follows: 

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the stock volatility for each grant is determined based on a review of the experience of the weighted average of historical daily price changes of the Company’s common stock over the expected option term, and the risk-free interest rate is based on the U.s. treasury yield curve in effect at the time of grant for periods corresponding with the expected term of the option. the expected term is calculated based on the simplified method. 

the total income tax benefit recognized in the statement of operations for share-based compensation arrangements was approximately $320,000, $280,000 and $270,000, for the years ended December 31, 2014, 2013 and 2012, respectively. 

## (m) deferred rent 

the Company accounts for escalating rental payments on a straight-line basis over the term of the lease. 

## (n) Shipping and Handling costs 

Costs incurred related to shipping and handling are included in cost of sales. Amounts charged to customers pertaining to these costs are included in net sales. 

## (o) research and development 

On a routine basis, the Company incurs costs related to research and development activity. these costs are expensed as incurred. Approximately $1.2 million, $1.2 million and $1.3 million were expensed in the years ended December 31, 2014, 2013 and 2012, respectively. 

