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STOCK-BASED COMPENSATION
 3 Months Ended
Mar. 31, 2012
STOCK-BASED COMPENSATION  
STOCK-BASED COMPENSATION

NOTE 2.  STOCK-BASED COMPENSATION

 

The Company accounts for its stock-based compensation in accordance with the authoritative guidance requiring the compensation cost relating to share-based payment transactions be recognized in the Company’s consolidated statements of income.

 

On June 21, 2010, the Company granted 426,709 stock options with an exercise price of $11.15 in exchange for 454,319 underwater stock options surrendered in a stockholder approved exchange offer that expired on June 19, 2010.  The newly granted options have a ten-year contractual term and have one of two vesting terms.  Options issued in exchange for unvested surrendered options vest one year following the anniversary date of surrendered options.  Options issued in exchange for vested surrendered options vest in three equal installments on June 21, 2011, 2012 and 2013, respectively.  The exchange ratio was calculated based on the fair values of the options surrendered and issued under a value-for-value exchange.  Incremental compensation expense was not material.

 

Reported stock based compensation expense was classified as follows:

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

2012

 

2011

 

Casino

 

$

13,323

 

$

21,489

 

Food and beverage

 

16,931

 

18,102

 

Hotel

 

4,056

 

3,644

 

Selling, general and administrative

 

234,175

 

421,646

 

Total stock-based compensation, before taxes

 

268,485

 

464,881

 

Tax benefit

 

(93,970

)

(162,708

)

Total stock-based compensation, net of tax

 

$

174,515

 

$

302,173