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Stock Based Compensation | 12 Months Ended
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Dec. 31, 2012
Stock-Based Compensation [Abstract] |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] |
| STOCK-BASED COMPENSATION
In April 2012, the stockholders approved the 2012 Omnibus Incentive Plan. At December 31, 2012, we have grants outstanding under stock incentive compensation plans approved by our stockholders. Under these plans, a total of 18.5 million shares have been authorized for issuance to our directors, officers and certain other associates in the form of options, unvested restricted stock or other awards that are based on the value of our common stock. Shares available for future grants at December 31, 2012 were 3.8 million. The current stock plan will expire in April 2022. STOCK OPTIONS Under the terms of the plans, stock options are granted at the market price of the stock on the grant date. The contractual term of outstanding stock options is 10 years. We issue new shares to satisfy stock-based awards. Stock option awards become exercisable in three approximately equal annual installments beginning one year from the date of grant. The following table summarizes activity relating to our stock options:
|  |  | Weighted-
| Number of |  | Average Exercise
| Shares |  | Price Per Share
| (in millions, except per share data)
Outstanding at January 1, 2010 | 5.6 |  |  | $ | 23.96 |
Options granted | — |  |  | — |
Options exercised | (0.2 | ) |  | 6.94 |
Options canceled | (0.4 | ) |  | 17.37 |
Outstanding at December 31, 2010 | 5.0 |  |  | $ | 25.01 |
Options granted | — |  |  | — |
Options exercised | (0.5 | ) |  | 8.69 |
Options canceled | (0.6 | ) |  | 26.96 |
Outstanding at December 31, 2011 | 3.9 |  |  | $ | 26.95 |
Options granted | 0.2 |  |  | 9.19 |
Options exercised | (0.1 | ) |  | 2.81 |
Options canceled | (1.0 | ) |  | 25.12 |
Outstanding at December 31, 2012 | 3.0 |  |  | $ | 27.08 |
Exercisable at December 31, 2010 | 4.8 |  |  | $ | 25.75 |
Exercisable at December 31, 2011 | 3.8 |  |  | $ | 27.25 |
Exercisable at December 31, 2012 | 2.8 |  |  | $ | 28.02 |
As of December 31, 2012, unrecognized compensation cost related to unvested stock options totaled $0.5 million. The weighted average period over which this cost is expected to be recognized is approximately two years. The total intrinsic value of options outstanding as of December 31, 2012 was $0.4 million. The total intrinsic value of options exercisable as of December 31, 2012 was $0.1 million. The total intrinsic value of stock options exercised was $0.5 million in 2012 and $3.0 million in 2011. The following is a summary of the range of exercise prices for stock options that are outstanding and exercisable at December 31, 2012:
|  |  |  | Weighted- |  |  |  |  |  | Weighted-
Range of |  | Stock Options |  | Average Exercise |  | Weighted-Average |  | Stock Options |  | Average Exercise
Exercise Prices |  | Outstanding |  | Price Per Share |  | Contractual Life |  | Exercisable |  | Price Per Share
|  | (in millions, except per share data) |  |  | (in years) |  | (in millions, except per share data)
$9.19 - $15.58 |  | 0.5 |  |  | $ | 12.82 |  |  | 5.3 |  | 0.3 |  |  | $ | 14.15 |
$19.54 - $23.73 |  | 0.9 |  |  | 23.63 |  |  | 0.1 |  | 0.9 |  |  | 23.63 |
$24.70 - $26.65 |  | 0.6 |  |  | 26.23 |  |  | 3.2 |  | 0.6 |  |  | 26.23 |
$33.71 - $40.83 |  | 1.0 |  |  | 38.54 |  |  | 1.1 |  | 1.0 |  |  | 38.54 |
|  | 3.0 |  |  | $ | 27.08 |  |  | 2.0 |  | 2.8 |  |  | $ | 28.02 |
We estimated the fair value of our employee stock options on the date of grant using the Black-Scholes option-pricing model with the following assumptions:
| 2012
Expected volatility | 47.00 | %
Risk-free interest rate | 1.17 | %
Dividend yield | — | %
Expected life of options | 6 years |
Weighted-average grant-date fair value | $ | 4.18 |
Expected volatility was based on the daily changes in our historical common stock prices over a period equal to the expected life of the award. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of the grant corresponding to the expected life of the options. Our dividend yield is based on the dividend at the time of grant. The expected life of options is based on historical stock option exercise patterns and the terms of the options. OTHER STOCK-BASED COMPENSATION We awarded performance accelerated restricted stock, restricted stock and restricted stock units (PARS, RS and RSUs, respectively). The total amount of compensation expense associated with the RSUs settled in cash is recorded as an accrued liability when incurred while the total amount of compensation expense associated with PARS, RS and RSUs settled in stock is recorded to paid-in-capital. The PARS and RSUs vest over three years contingent upon the satisfaction of future financial performance targets specified by the plan and the RS vests over three years. The unearned compensation is expensed over the expected vesting period. The following table summarizes activity relating to our PARS, RS and RSUs:
|  |  | Weighted Average
| Number of |  | Grant Date Fair
| Shares/Units |  | Value per Share/Unit
| (in millions, except per share data)
Outstanding at January 1, 2010 | 3.3 |  |  | $ | 14.77 |
Granted | — |  |  | — |
Vested | (0.4 | ) |  | 23.42 |
Canceled | (0.1 | ) |  | 14.54 |
Outstanding at December 31, 2010 | 2.8 |  |  | $ | 13.48 |
Granted | — |  |  | — |
Vested | (1.1 | ) |  | 17.41 |
Canceled | (0.1 | ) |  | 10.68 |
Outstanding at December 31, 2011 | 1.6 |  |  | $ | 10.74 |
Granted | 1.0 |  |  | 10.31 |
Vested | (1.4 | ) |  | 10.19 |
Canceled | (0.1 | ) |  | 26.02 |
Outstanding at December 31, 2012 | 1.1 |  |  | $ | 11.08 |
As of December 31, 2012, unrecognized compensation cost related to unvested RSUs totaled $8.7 million. The weighted average period over which this cost is expected to be recognized is approximately two years. In 2012 and 2011, the total fair market value of PARS, RS and RSUs vested was $17.6 million and $15.5 million, respectively. We made cash payments of $0.2 million, $0.4 million and $1.2 million related to vested RSUs in 2012, 2011 and 2010, respectively. PERFORMANCE AWARDS As of December 31, 2012, we have performance awards outstanding under our AAM 2009 long-term incentive plan, as well as our 2012 Omnibus Incentive Plan. We granted performance awards payable in cash to our officers and executives which vest in full over a three year performance period. The payout of these awards is based on a total shareholder return (TSR) measure that compares our TSR over the three-year performance period relative to the TSR of our pre-defined competitor peer group. Share price appreciation and dividends paid is measured over the performance period to determine TSR. According to the applicable accounting guidance, these awards are considered to be stock-based compensation because the final payout amount is based “at least in part” on the price of our shares. As these awards are settled in cash, they are determined to be liability awards and will be remeasured at the end of each reporting period until settlement. The fair value of the performance awards is calculated on a quarterly basis using the Monte Carlo simulation approach and the liability is adjusted accordingly based on changes to the fair value and the percentage of time vested. The Monte Carlo simulation approach utilizes inputs on volatility assumptions, risk free rates, the price of the Company’s and our peer group's common stock and their correlation as of each valuation date. Volatility assumptions are based on historical and implied volatility measurements. We recognized compensation expense associated with the performance awards of approximately $3.0 million in 2012, $3.5 million in 2011 and $1.6 million in 2010. We have a liability of $4.5 million recorded as of December 31, 2012. Based on the current fair value, the estimated unrecognized compensation cost related to the performance awards totaled $2.5 million, as of December 31, 2012. The weighted average period over which this cost is expected to be recognized is approximately eighteen months.

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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 SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 14 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 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Statement of Position (SOP) -Number 93-6 -Paragraph 53 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 6: 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 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 123R -Paragraph 64, 65, A240 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 8: 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 + Details
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