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Stock-based Compensation Plans
 3 Months Ended
Mar. 31, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stock-based and deferred compensation plans
Stock-based Compensation

During the first quarter of 2013, the Company granted performance-based share units (“PSUs”) to executives and key members of management. There were no PSUs awarded in periods prior to 2013. The PSUs vest over a period of four years following the date of grant, and 25% of the grant is earned or forfeited on each grant anniversary date, subject to certification of the performance criteria by the Compensation Committee of the Board of Directors. The number of units that actually vest will be determined for each year based on the achievement of certain Company performance criteria set forth in the award agreement and may range from zero to 200% of the annual target grant. PSUs that do not vest based on failure to satisfy the stated performance criteria for any annual period are forfeited. In addition to the satisfaction of the performance criteria for the PSUs, vesting is dependent upon continued service with forfeiture of all unvested PSUs upon termination, unless in the case of death or disability, in which case a pro rata portion of the target number of PSUs are eligible to immediately vest based on actual performance during the performance period. The PSUs are settled in shares of common stock. Holders will receive one share of common stock for each performance-based share unit that vests. The fair value of PSUs is based on the closing price of the Company’s common stock on the grant date. Compensation expense for PSUs is recognized over the vesting period when it is probable the performance criteria will be achieved. During the three months ended March 31, 2013, a nominal amount of compensation expense was recorded for the PSUs.

The following table presents a summary of the Company’s stock-based compensation activity for the three months ended March 31, 2013 (in thousands):

 
STOCK OPTIONS
 
RESTRICTED STOCK AWARDS
 
PERFORMANCE-BASED SHARE UNITS (1)
Outstanding at December 31, 2012
12,379

 
299

 
—

Granted
1,282

 
219

 
52

Exercised or vested
(1,212
)
 
(3
)
 
—

Forfeited or expired
(243
)
 
(10
)
 
(4
)
Outstanding at March 31, 2013
12,206

 
505

 
48

________________
(1)
Share unit amounts represent the target number of PSUs considered granted for accounting recognition based on the establishment of performance targets for future years. The actual number of shares that will be earned upon vesting is dependent upon actual performance and may range from zero to 200% of the target number of shares.

At March 31, 2013 and December 31, 2012, approximately 6.2 million and 7.3 million, respectively, of outstanding stock options were exercisable.

The weighted-average grant date fair value of stock options granted during the three months ended March 31, 2013 and 2012 was $8.47 and $6.87, respectively, and was estimated using the Black-Scholes option pricing model. The following assumptions were used to calculate the fair value of options granted for the periods indicated:

 
THREE MONTHS ENDED MARCH 31,
 
2013
 
2012
Weighted-average risk-free interest rate
1.09
%
 
1.15
%
Dividend yield
—
%
 
—
%
Expected term
6.3 years

 
6.5 years

Weighted-average volatility
48.6
%
 
55.5
%


During the three months ended March 31, 2013 and 2012, the Company recognized aggregate stock-based compensation expense of $4.4 million and $0.7 million, respectively.