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At the Company’s discretion, RsU holders are given the option to net-share settle to cover the required minimum withholding tax, and the remaining amount is converted into the equivalent number of common shares. During the year ended December 31, 2014, 9,878 shares were redeemed for this purpose at an average market price of $25.88. During the years ended December 31, 2013 and 2012, 22,089 and 25,684 shares were redeemed for this purpose at an average market price of $19.29 and $16.10, respectively. 

the following summarizes the future share-based compensation expense the Company will record as the equity securities granted through December 31, 2014, vest (in thousands): 

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tax benefits totaling approximately $1,219,000, $818,000 and $831,000 were recognized as additional paid-in capital during the years ended December 31, 2014, 2013 and 2012, respectively, since the Company’s tax deductions exceeded the share-based compensation charge recognized for stock options exercised and RsUs vested. 

## (13) Preferred Stock 

On March 18, 2009, the Company declared a dividend of one preferred share purchase right (a “Right”) for each outstanding share of common stock, par value $0.01 per share on March 20, 2009, to the stockholders of record on that date. each Right entitles the registered holder to purchase from the Company one one-thousandth of a share of series A Junior participating preferred stock, par value $0.01 per share (the “preferred share”), of the Company, at a price of $25.00 per one one-thousandth of a preferred share subject to adjustment and the terms of the Rights Agreement. the rights expire on March 19, 2019. 

## (14) Supplemental retirement benefits 

the Company provides discretionary supplemental retirement benefits for certain retired officers, which will provide an annual benefit to these individuals for various terms following separation from employment. the Company recorded an expense of approximately $23,000, $17,000 and $32,000 for the years ended December 31, 2014, 2013 and 2012, respectively. the present value of the supplemental retirement obligation has been calculated using a 4.0% discount rate, and is included in retirement and other liabilities. total projected future cash payments for the years ending December 31, 2015 through 2019, are approximately $25,000 for each year. 

## (15) commitments and contingencies 

(a) Leases  – the Company has operating leases for certain facilities that expire through 2018. Certain of the leases contain escalation clauses that require payments of additional rent, as well as increases in related operating costs. 

Future minimum lease payments under non-cancelable operating leases as of December 31, 2014, are as follows (in thousands): 

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(a) Minimum payments have not been reduced by minimum sublease rentals of approximately $589,000 due in the future under noncancelable subleases. 

Rent expense amounted to approximately $1.8 million, $2.0 million and $2.4 million in 2014, 2013 and 2012 respectively 

(b) Legal  – the Company is a defendant in various administrative proceedings that are being handled in the ordinary course of business. In the opinion of management of the Company, these suits and claims should not result in final judgments or settlements that, in the aggregate, would have a material adverse effect on the Company’s financial condition or results of operations. 

