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Stock-Based Compensation
 9 Months Ended
Sep. 30, 2013
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Stock-Based Compensation

10. Stock-Based Compensation

The Company has an Omnibus Incentive and Equity Plan (the “Plan”) under which employees, directors and consultants may be granted equity-based awards, including restricted stock units (“RSUs”), stock options and unrestricted shares of common stock. At September 30, 2013, 496,694 shares of common stock remain available for issuance of the 1,800,000 shares that were reserved for issuance under the Plan. Each RSU entitles the holder to one share of Virtus common stock when the restriction expires. RSUs generally have a term of three years and may be time-vested or performance-contingent. Stock options generally vest over three years and have a contractual life of ten years. Stock options are granted with an exercise price equal to the fair market value of the shares at the date of grant. The fair value of each RSU is estimated using the intrinsic value method, which is based on the fair market value price on the date of grant. Shares that are issued upon exercise of employee stock options and vesting of RSUs are newly issued shares and not issued from treasury stock.

 

Restricted Stock Units

RSU activity for the nine months ended September 30, 2013 is summarized as follows:

 

     Number
of Shares		     Weighted
Average
Grant Date
Fair Value		  

Outstanding at December 31, 2012

      292,057      $ 57.89   

Granted

      46,000      $ 188.36   

Forfeited

      (11,942 )    $ 88.00   

Settled

      (91,269 )    $ 38.23   
  

 

 

    

Outstanding at September 30, 2013

      234,846      $ 88.26   
  

 

 

    

For the nine months ended September 30, 2013, a total of 38,128 RSUs were withheld by the Company as a result of net share settlements to satisfy employee tax withholding obligations. During the nine months ended September 30, 2013, the Company paid $7.5 million in employee tax withholding obligations related to the RSUs withheld. These net share settlements had the effect of share repurchases by the Company as they reduced the number of shares that would have been otherwise issued as a result of the vesting.

Stock Options

Stock option activity for the nine months ended September 30, 2013 is summarized as follows:

 

     Number
of Shares		     Weighted
Average
Exercise Price		  

Outstanding at December 31, 2012

      220,349      $ 20.03   

Exercised

      (25,512 )    $ 18.76   

Forfeited

      (363 )    $ 55.18   
  

 

 

    

Outstanding at September 30, 2013

      194,474      $ 20.13   
  

 

 

    

During the three months ended September 30, 2013 and 2012, the Company recognized $2.0 million and $1.6 million, respectively, in total stock-based compensation expense. During the nine months ended September 30, 2013 and 2012, the Company recognized $6.0 million and $5.4 million, respectively, in total stock-based compensation expense. As of September 30, 2013, unamortized stock-based compensation expense for unvested RSUs and stock options was $11.2 million and $0.1 million, respectively, with weighted-average remaining amortization periods of 1.2 years and 0.5 years, respectively.