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Stock-Based Compensation | 12 Months Ended
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Dec. 31, 2011
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
Stock-Based Compensation | STOCKHOLDERS' EQUITY Preferred Stock The Company is authorized to issue up to 15,000,000 shares of preferred stock at $1.00 par value. At December 31, 2011, no shares of preferred stock have been issued; however, 2,000,000 shares of Series A Junior Participating Preferred Stock have been reserved for issuance in connection with the Company’s Shareholder Rights Plan. Additional series of preferred stock may be designated and the related rights and preferences fixed by action of the Board of Directors. Shareholder Rights Plan In May 2008, the Board of Directors approved a shareholder rights plan and declared a dividend of one preferred share purchase right for each outstanding share of common stock. Each right represents the right to purchase one-hundredth of a share Preferred Stock, at an exercise price of $100.00, subject to adjustment. The rights are only exercisable ten days after a person or group acquires, or commences a tender or exchange offer to acquire, beneficial ownership of 15% or more of the Company’s outstanding common stock. Subject to the terms of the shareholder rights plan and the discretion of the Board of Directors, each right would entitle the holder to purchase a number of additional shares of common stock of LP having a total market value of twice the exercise price of each right. The rights expire in June 2018, but can be redeemed by action of the Board of Directors prior to that time at $0.01 per right. Sale of Common Stock On September 29, 2009, LP completed a public offering of 20.7 million shares of common stock, which included the exercise of the overallotment option of 2.7 million shares, at a price per share of $6.75, raising $139.7 million before offering costs. In connection with the offering, LP paid $7.0 million in underwriting discounts and commissions and approximately $0.4 million in expenses. Warrants As part of the unit issuance described in Note 12, LP issued warrants to purchase 18,395,963 shares of LP common stock at an exercise price of $1.39 per share subject to mandatory cashless exercise provisions. During the years ended December 31, 2011 and December 31, 2010, warrant exercises resulted in the issuances of 4,981,305 and 5,108,412 shares. At December 31, 2011, the remaining outstanding warrants were exercisable to purchase approximately 3,893,567 shares. The warrants (at date of grant) were valued based upon Black-Scholes option pricing model using expected stock price volatility of 53%; no expected dividends; risk-free interest rate of 2.6%; and an expected life of 8 years, which resulted in a fair value per share of $0.72. Common Stock Plans At December 31, 2011, LP had stock-based employee compensation plans as described below. The total compensation expense related to all of LP’s stock-based compensation plans was $7.8 million for the year ended December 31, 2011; $8.8 million for the year ended December 31, 2010 and $7.3 million for the year ended December 31, 2009. LP recognizes these compensation costs net of an estimated forfeiture rate and recognizes the compensation costs for only those shares expected to vest on a straight-line basis over the requisite service period of the award, which is generally the vesting term of three years. LP estimated the forfeiture rate for 2011, 2010 and 2009 based on its historical experience during the preceding three years. During 2010, LP changed the service requirement for future awards for its current Chief Executive Officer which allows awards to vest regardless of service period. For these awards, LP is required to expense the entire amount of the award as of the date of grant. Stock Compensation Plans LP grants options and stock settled stock appreciation rights (SSARs) to key employees and directors to purchase LP common stock. On exercise or issuance, LP generally issues these shares from treasury. The options and SSARs are granted at market price at the date of grant. For employees, options and SSARs become exercisable over three years and expire ten years after the date of grant. For directors, these options become exercisable in 10% increments every three months, starting three months after the date of grant, and expire ten years after the date of grant. At December 31, 2011, 4.7 million shares were available under the current stock award plans for stock-based awards. The following table sets out the weighted average assumptions used to estimate the fair value of the options and SSARs granted using the Black-Scholes option-pricing model:
| 2011 |  | 2010 |  | 2009
Expected stock price volatility | 64 | % |  | 59 | % |  | 50 | %
Expected dividend yield | — | % |  | — | % |  | — | %
Risk-free interest rate | 2.1 | % |  | 2.4 | % |  | 1.8 | %
Expected life of options (in years) | 5.2 |  |  | 5.1 |  |  | 5.0 |
Weighted average fair value of options and SSARs granted | $ | 5.59 |  |  | $ | 3.73 |  |  | $ | 1.00 |
Expected Stock Price Volatility: The fair values of stock-based payments were valued using the Black-Scholes valuation method with a volatility factor based on LP’s historical stock prices. Expected Dividend Yield: The Black-Scholes valuation model calls for a single expected dividend yield as an input. This is determined based upon current annual dividend as of the date of grant compared to the grant price. Risk-Free Interest Rate: LP bases the risk-free interest rate used in the Black-Scholes valuation method on U.S. Treasury issues with an equivalent term. Where the expected term of LP’s stock-based awards do not correspond with the terms for which interest rates are quoted, LP performed a straight-line interpolation to determine the rate from the available maturities. Expected Life of Options: Expected life represents the period that LP’s stock-based awards are expected to be outstanding and was determined based on historical experience of similar awards, giving consideration to the contractual terms of the stock-based awards, vesting schedules and expectations of future employee behavior as influenced by changes to the terms of its stock-based awards. Estimated Pre-vesting Forfeitures: When estimating forfeitures, LP considers voluntary termination behavior as well as workforce reduction programs. The following table summarizes stock options and SSARs outstanding as of December 31, 2011 as well as activity during the three year period then ended.
Share amounts in thousands | Options/ SSARs |  | Weighted Average Exercise Price |  | Weighted Average Contractual Term (in years) |  | Aggregate Intrinsic Value (in millions)
Options outstanding at January 1, 2009 | 5,437 |  |  | $ | 18.79 |  |  |  |  |
Options granted | 1,912 |  |  | $ | 2.21 |  |  |  |  |
Options exercised | — |  |  | $ | — |  |  |  |  |
Options canceled | (738 | ) |  | $ | 18.82 |  |  |  |  |
Options outstanding at December 31, 2009 | 6,611 |  |  | $ | 13.99 |  |  |  |  |
Options granted | 1,160 |  |  | $ | 7.05 |  |  |  |  |
Options exercised | (83 | ) |  | 2.17 |  |  |  |  |
Options canceled | (108 | ) |  | $ | 11.36 |  |  |  |  |
Options outstanding at December 31, 2010 | 7,580 |  |  | $ | 13.10 |  |  |  |  |
Options granted | 834 |  |  | $ | 10.06 |  |  |  |  |
Options exercised | (18 | ) |  | $ | 4.93 |  |  |  |  |
Options canceled | (81 | ) |  | $ | 15.88 |  |  |  |  |
Options outstanding at December 31, 2011 | 8,315 |  |  | $ | 12.78 |  |  | 6.3 |  |  | $ | 11.8 |
Vested and expected to vest at December 31, 2011(1) | 7,899 |  |  | $ | — |  |  | — |  |  | $ | 11.2 |
Options exercisable at December 31, 2011 | 6,138 |  |  | $ | 14.90 |  |  | 5.6 |  |  | $ | 7.4 |
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(1) | Options or SSARS expected to vest based upon historical forfeiture rate
The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference between LP’s closing stock price on the last trading day of 2011 and the exercise price, multiplied by the number of in-the-money options and SSARs) that would have been received by the holders had all holders exercised their awards on December 31, 2011. This amount changes based on the market value of LP’s stock as reported by the New York Stock Exchange. As of December 31, 2011, there was $3.6 million of total unrecognized compensation costs related to stock options and SSARs. These costs are expected to be recognized over a weighted-average period of 1.2 years. LP recognized $3.9 million, $4.9 million and $5.2 million in compensation expense associated with these awards for the years ended December 31, 2011, 2010 and 2009. Incentive Share Awards LP has granted incentive share stock awards (restricted stock units) to certain key employees as allowed under the current stock award plans. The awards entitle the participant to receive a specified number of shares of LP common stock at no cost to the participant. Awards granted under this plan vest three years from the date of grant. The market value of these grants approximates the fair value. LP recorded compensation expense related to these awards in 2011, 2010 and 2009 of $2.3 million, $1.9 million and $0.6 million. As of December 31, 2011, there was $2.7 million of total unrecognized compensation cost related to unvested incentive share awards. This expense will be recognized over a weighted-average period of 1.1 years. The following table summarizes incentive share awards outstanding as of December 31, 2011 as well as activity during the three year period then ended.
| Shares |  | Weighted Average Contractual Term (in years) |  | Aggregate Intrinsic Value (in millions)
Incentive share awards outstanding at January 1, 2009 | 193,987 |  |  |  |  |
Incentive shares awards granted | 459,072 |  |  |  |  |
Incentive share awards vested | (56,477 | ) |  |  |  |
Incentive share awards canceled | (26,013 | ) |  |  |  |
Incentive share awards outstanding at December 31, 2009 | 570,569 |  |  |  |  |
Incentive shares awards granted | 400,907 |  |  |  |  |
Incentive share awards vested | (4,236 | ) |  |  |  |
Incentive share awards canceled | (11,304 | ) |  |  |  |
Incentive share awards outstanding at December 31, 2010 | 955,936 |  |  |  |  |
Incentive shares awards granted | 336,816 |  |  |  |  |
Incentive share awards vested | (121,500 | ) |  |  |  |
Incentive share awards canceled | (58,384 | ) |  |  |  |
Incentive share awards outstanding at December 31, 2011 | 1,112,868 |  |  | 1.1 |  |  | $ | 9.0 |
Vested and expected to vest at December 31, 2011(1) | 1,057,225 |  |  | 1.1 |  |  | $ | 8.6 |
Incentive share awards exercisable at December 31, 2011 | — |  |  | — |  |  | — |
_______________
(1) | Incentive shares expected to vest based upon historical forfeitures rate
Restricted Stock LP grants restricted stock to certain senior executive employees. The shares vest three years from the date of grant. During the vesting period, the participants have voting rights and receive dividends, but the shares may not be sold, assigned, transferred, pledged or otherwise encumbered. Additionally, granted but unvested shares are forfeited upon termination of employment. The fair value of the restricted shares on the date of the grant is amortized ratably over the vesting period which is generally three years. As of December 31, 2011, there was $1.9 million of total unrecognized compensation costs related to restricted stock. This expense will be recognized over the next 0.8 years. The following table summarizes restricted stock awards outstanding as of December 31, 2011 as well as activity during the three year period then ended.
| Number of Shares |  | Weighted Average Grant Date Fair Value
Restricted stock awards outstanding at January 1, 2009 | 336,450 |  |  | $ | 19.61 |
Restricted stock awards granted | 457,314 |  |  | 2.40 |
Restrictions lapsing | (103,073 | ) |  | 18.62 |
Restricted stock awards canceled | (25,170 | ) |  | 17.34 |
Restricted stock awards at December 31, 2009 | 665,521 |  |  | 8.02 |
Restricted stock awards granted | 210,536 |  |  | 7.00 |
Restrictions lapsing | (77,320 | ) |  | 22.99 |
Restricted stock awards canceled | (15,448 | ) |  | 5.93 |
Restricted stock awards at December 31, 2010 | 783,289 |  |  | 6.31 |
Restricted stock awards granted | 149,239 |  |  | 10.14 |
Restrictions lapsing | (171,800 | ) |  | 15.27 |
Restricted stock awards canceled | — |  |  | — |
Restricted stock awards at December 31, 2011 | 760,728 |  |  | $ | 5.04 |
LP recorded compensation expense related to these awards in 2011, 2010 and 2009 of $1.3 million, $1.7 million, and $1.5 million. LP annually grants to each director restricted stock or restricted stock units. As of December 31, 2011, LP has 352,178 shares (or restricted stock units) outstanding under this program. Compensation expense recognized in 2011 related to these grants was $0.2 million. Phantom Stock Beginning in 2011, LP will annually grants phantom stock units to its directors. The awards are considered liability awards. The director does not receive rights of a shareholder, nor is any stock transfered. The units will be paid in cash at the end of the five year vesting period. The value of one unit is based on the market value of one share of common stock on the vesting date. The cost of the grants is recognized over the vesting period and is included in stock-based compensation expense. As of December 31, 2011, LP had phantom stock units covering 39,944 shares outstanding under this program.

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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 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5444-113901 Reference 2: 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 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 14 Reference 4: 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 5: 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 6: 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 7: 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 8: 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 + Details
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