XML 49 R11.htm IDEA: XBRL DOCUMENT v2.4.0.6
Accounting for stock-based compensation
 6 Months Ended
Jun. 30, 2012
Accounting for stock-based compensation [Abstract]  
Accounting for stock-based compensation

4. Accounting for stock-based compensation

Total stock-based compensation expense recognized in the accompanying condensed consolidated statements of operations for the three and six months ended June 30, 2012 and 2011 was as follows (in thousands):

 

                                 
    Three months ended
June  30,		     Six months ended
June 30,		  
    2012     2011     2012     2011  

Stock-based compensation

   $ 3,072     $ 1,993     $ 5,951     $ 4,701  
   

 

 

    

 

 

    

 

 

    

 

 

  

On May 17, 2012, the Compensation Committee approved a management proposal designed to encourage employee retention. The proposal involved the grant of stock options and restricted stock units to employees, including executive officers of the Company. 3,942,500 options were granted with vesting terms subject to the achievement of certain performance milestones. 3,942,500 options were granted with time-based vesting terms of 25% every 6 months beginning November 1, 2012, to be fully vested on May 1, 2014. 50,600 options were granted with time-based vesting terms of 25% after one year and ratably on a monthly basis over a period of 36 months thereafter. 62,700 restricted stock units were granted with terms time-based vesting of 25% after one year and ratably on a monthly basis over a period of 36 months thereafter. The performance-based options, time-based stock options, and restricted stock units had a grant date per share fair value of $1.12, $1.12 and $0.60, respectively.

The Company uses the Black-Scholes option valuation model to estimate the grant date fair value of employee stock options. Restricted stock units are valued based on the market price on the grant date.  The Company calculated the fair value of employee stock options for the three months ended June 30, 2012 using the following assumptions:

 

         
    Performance-based   Time-based

Risk-free interest rate

   0.20% — 0.32%   0.74% —1.16%

Expected lives

   1.2 — 2.1 years   5.6 — 6.1 years

Volatility

   35% — 70%   81% — 83%

Dividends

   —   —

As of June 30, 2012, there was $14.0 million and $11.5 million of unrecognized compensation cost related to options and restricted stock units, respectively, which are expected to be recognized over the remaining weighted average vesting period of 1.9 years. The Company evaluates stock awards with performance conditions as to the probability that the performance conditions will be met and estimates the date at which the performance conditions will be met in order to properly recognize stock-based compensation expense over the requisite service period. As of June 30, 2012, there was $128,000 and $3.7 million of unrecognized expenses related to performance options and restricted stock units, respectively, for milestones not considered probable of achievement.