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STOCK-BASED COMPENSATION
 6 Months Ended
Jun. 30, 2012
STOCK-BASED COMPENSATION  
STOCK-BASED COMPENSATION

NOTE 3. 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 stock options for 426,709 shares, each with an exercise price of $11.15, in exchange for underwater stock options for 454,319 shares, which were 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

 

Six Months Ended

 

 

 

June 30,

 

June 30,

 

 

 

2012

 

2011

 

2012

 

2011

 

Casino

 

$

14,669

 

$

18,503

 

$

27,992

 

$

39,992

 

Food and beverage

 

18,451

 

16,690

 

35,381

 

34,792

 

Hotel

 

4,056

 

3,685

 

8,112

 

7,329

 

Selling, general and administrative

 

279,690

 

374,081

 

513,867

 

795,727

 

Total stock-based compensation, before taxes

 

316,866

 

412,959

 

585,352

 

877,840

 

Tax benefit

 

(110,903

)

(144,536

)

(204,873

)

(307,244

)

Total stock-based compensation, net of tax

 

$

205,963

 

$

268,423

 

$

380,479

 

$

570,596