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Stock-Based Compensation | 9 Months Ended
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Sep. 30, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
Stock-Based Compensation | STOCK-BASED COMPENSATION At September 30, 2014, 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 $2.4 million for the quarter ended September 30, 2014 and 2013, and $6.9 million for the nine months ended September 30, 2014 and $6.6 million for the nine months ended September 30, 2013. Stock Compensation Plans LP grants options to purchase LP common stock and stock settled stock appreciation rights (SSARs) to key employees and directors. On exercise, LP generally issues shares from treasury to settle these awards. The options and SSARs are granted at market price at the date of grant. For employees, SSARs become exercisable ratably over a three year period and expire ten years after the date of grant. Prior to January 1, 2013, options were granted to directors and became 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 September 30, 2014, 5.2 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 in the first nine months of the respective years noted:
| 2014 |  | 2013
Expected stock price volatility | 57.5% |  | 69.2%
Expected dividend yield | —% |  | —%
Risk-free interest rate | 1.5% |  | 0.9%
Expected life of options (in years) | 5 years |  | 5 years
Weighted average fair value of options and SSARs granted | $9.03 |  | $11.68
The following table summarizes stock options and SSARs outstanding as of September 30, 2014, as well as activity during the nine month period then ended.
Share amounts in thousands | Options and SSARs |  | Weighted Average Exercise Price |  | Weighted Average Contractual Term (in years) |  | Aggregate Intrinsic Value (in millions)
Options outstanding at January 1, 2014 | 6,937 |  |  | $ | 14.26 |  |  |  |  |
Options granted | 494 |  |  | 18.09 |  |  |  |  |
Options exercised | (3 | ) |  | 15.27 |  |  |  |  |
Options canceled | (377 | ) |  | 21.08 |  |  |  |  |
Options outstanding at September 30, 2014 | 7,051 |  |  | $ | 14.17 |  |  | 4.8 |  |  | $ | 21.5 |
Vested and expected to vest at September 30, 2014(1) | 6,698 |  |  | — |  |  | — |  |  | $ | 20.4 |
Options exercisable at September 30, 2014 | 6,054 |  |  | $ | 13.91 |  |  | — |  |  | $ | 20.0 |
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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 the third quarter of 2014 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 September 30, 2014. This amount changes based on the market value of LP's stock as reported by the New York Stock Exchange. As of September 30, 2014, there was $5.4 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 1.5 years. LP recorded compensation expense related to these awards in the first nine months of 2014 of $2.8 million. Incentive Share Awards LP has granted incentive share stock awards (restricted stock units) to certain key employees and directors. The employee awards vest three years from date of grant and awards to directors vest one year from date of grant. The awards entitle the participant to receive a specified number of shares of LP common stock at no cost to the participant. The market value at the time of grant approximates the fair value. LP recorded compensation expense related to these awards in the first nine months of 2014 of $2.2 million. As of September 30, 2014, there was $3.8 million of total unrecognized compensation cost related to unvested incentive share awards. This expense will be recognized over a weighted-average period of 1.0 years. The following table summarizes incentive share awards outstanding as of September 30, 2014 as well as activity during the nine months then ended.
| Shares |  | Weighted Average Contractual Term (in years) |  | Aggregate Intrinsic Value (in millions)
Incentive share awards outstanding at January 1, 2014 | 752,595 |  |  |  |  |
Incentive share awards granted | 183,890 |  |  |  |  |
Incentive share awards vested | (290,912 | ) |  |  |  |
Incentive share awards canceled | (19,474 | ) |  |  |  |
Incentive shares outstanding at September 30, 2014 | 626,099 |  |  | 1.0 |  |  | $ | 8.5 |
Vested and expected to vest at September 30, 2014(1) | 594,794 |  |  | — |  |  | $ | 8.1 |
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(1) | Incentive shares expected to vest based upon historical forfeiture rate
Restricted Stock LP grants restricted stock to certain senior employees. The shares for employees vest three years from the date of grant and for directors vest five years from 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. As of September 30, 2014, there was $2.9 million of total unrecognized compensation costs related to restricted stock. This expense will be recognized over the next 1.1 years. The following table summarizes the restricted stock outstanding as of September 30, 2014 as well as activity during the nine months then ended.
| Number of Shares |  | Weighted Average Grant Date Fair Value
Restricted stock awards outstanding at January 1, 2014 | 512,085 |  |  | $ | 11.48 |
Restricted stock awards granted | 122,649 |  |  | 17.93 |
Restrictions lapsed | (160,567 | ) |  | 9.64 |
Restricted stock canceled | (11,021 | ) |  | 12.35 |
Restricted stock awards at September 30, 2014 | 463,146 |  |  | $ | 13.80 |
Compensation expense related to these awards recognized in the first nine months of 2014 was $1.6 million. Performance share awards In connection with Mr. Stevens' appointment to Chief Executive Officer on May 4, 2012, he was awarded 300,000 performance shares. LP recorded compensation expense related to these awards of $0.3 million in the first nine months of 2014. As of September 30, 2014, there was $0.6 million of total unrecognized compensation costs related to this award. This expense will be recognized over the next 1.6 years. Phantom stock During 2011 and 2012, LP made annual grants of phantom stock units to its directors. Subsequent to the approval of the 2013 Omnibus Plan, phantom stock units are no longer granted to directors. The director does not receive rights of a shareholder, nor is any stock transfered. The units will be paid out 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 expense associated with these grants is recognized over the vesting period and is included in stock-based compensation expense. Since these awards are settled in cash, such awards are required to be remeasured based upon the changes in LP's stock price. As of September 30, 2014, LP had 66,339 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 1 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901 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 40 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6418621&loc=d3e17540-113929 Reference 5: 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 6: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 14 + Details
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