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Stock Compensation Plans | 12 Months Ended
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Dec. 31, 2011
Stock Compensation Plans [Abstract] |
Stock Compensation Plans | Note 9 – Stock Compensation Plans In June 2009, our stockholders approved the VASCO Data Security International, Inc. 2009 Equity Incentive Plan (the "2009 Equity Plan"). The 2009 Equity Plan permits the issuance of awards in a variety of forms, including (1) shares of our common stock, (2) nonqualified and incentive stock options for the purchase of our common stock, (3) stock appreciation rights, (4) deferred stock, (5) other stock-based awards (including restricted shares, performance shares, performance units and other stock unit awards), and (6) cash incentive awards. Upon approval of the 2009 Equity Plan, our 1997 Stock Compensation Plan, as amended and restated (the "1997 Compensation Plan") was suspended. No additional awards will be issued under the 1997 Compensation Plan, however, all outstanding awards under the 1997 Compensation Plan were unaffected by the approval of the 2009 Equity Plan. The 1997 Compensation Plan permitted the award of stock compensation in various forms. The 2009 Equity Plan and the 1997 Compensation Plan were designed and intended to provide performance incentives to employees and non-employee directors, consultants and other key persons of the company. Both plans are administered by the Compensation Committee as appointed by the Board of Directors and are intended to be non-qualified plans. As of December 31, 2011, the number of shares allowed to be issued under the 2009 Equity Plan was 7,003 shares of the company's common stock, representing 18.3% of the issued and outstanding shares of the company as of such date. The following table summarizes compensation expense recorded under the two plans.
|  | 2011 |  |  | 2010 |  |  | 2009 |
Compensation expense included in income: |  |  |  |  |  |  |  |  |  |  |  |
Stock options |  | $ | 0 |  |  | $ | 0 |  |  | $ | 11 |
Restricted stock |  |  | 3,140 |  |  |  | 1,054 |  |  |  | 542 |
Long-term compensation plan |  |  | 2,977 |  |  |  | (33 | ) |  |  | (862 | )
Total expense (benefit) |  | $ | 6,117 |  |  | $ | 1,021 |  |  | ($ | 309 | )
Stock Options We have not granted stock options since 2005; however, compensation expense is recognized for the unvested options as required by ASC 718-10. This statement requires the company to estimate the fair value of stock options granted and to record compensation expense equal to the estimated fair value. The fair value of stock options at the date of grant is estimated using the Black-Scholes option pricing model, with the expected life adjusted to reflect the effect of post-vesting restrictions. This compensation expense is recorded on a straight-line basis over the vesting period of the options. All options granted under the 1997 Compensation Plan were issued with a strike price equal to market value on the date of grant, with terms of six to ten years and vesting periods ranging from one to five years. The company may issue new shares or treasury shares for option exercises. The following table summarizes option activity for the year ended December 31, 2011. All options outstanding at December 31, 2011, 2010, and 2009 were fully vested.
|  | Shares |  |  | Weighted Average Exercise Price |  |  | Weighted Average Remaining Term (Years) |  |  | Aggregate Intrinsic Value |
Outstanding at January 1, 2011 |  |  | 1,231 |  |  | $ | 2.65 |  |  |  | 1.88 |  |  | $ | 6,746 |
Exercised |  |  | (203 | ) |  |  | 2.60 |  |  |  |  |  |  |  | 1,094 |
Outstanding at December 31, 2011 |  |  | 1,028 |  |  |  | 2.66 |  |  |  | 1.05 |  |  |  | 3,968 |
At December 31, 2011: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fully vested, exercisable options |  |  | 1,028 |  |  | $ | 2.66 |  |  |  | 1.05 |  |  | $ | 3,968 |
The intrinsic value of options exercised and the fair value of shares vested over the last three years were:
|  | 2011 |  |  | 2010 |  |  | 2009 |
Intrinsic value of options exercised |  | $ | 1,094 |  |  | $ | 2 |  |  | $ | 204 |
Fair value of shares vested |  |  | 0 |  |  |  | 0 |  |  |  | 21 |
Time-Based Restricted Stock Time-based restricted stock awards were granted to executive officers, employees and non-employee directors. Awards to non-employee directors vest on the first anniversary date of the grant. Awards to executive officers and employees vest annually over three or four year periods. Shares are subject to forfeiture if the service period requirement is not met. Compensation expense equal to the market value of the stock on the grant date is recorded on a straight-line basis over the vesting period as required by ASC 718-10. Compensation expense was $1,415, $905, and $961 for 2011, 2010 and 2009. The following table summarizes the time-based restricted stock activity for the year ended December 31, 2011:
|  | Shares |  |  | Weighted average remaining term (years) |  |  | Aggregate intrinsic value |
Outstanding at January 1, 2011 |  |  | 222 |  |  |  | 1.85 |  |  | $ | 1,805 |
Shares vested |  |  | (110 | ) |  |  |  |  |  |  | 916 |
Shares awarded |  |  | 393 |  |  |  |  |  |  |  | 3,262 |
Outstanding at December 31, 2011 |  |  | 505 |  |  |  | 2.48 |  |  |  | 3,295 |
The unamortized future compensation expense for time-based restricted stock awards was $2,776 at December 31, 2011. Performance-Based Restricted Stock Performance-based restricted stock awards were granted to executive officers and employees and are earned over a three or four year period. Awards are variable subject to achievement of company performance targets established by the Board of Directors. For awards granted in 2011, performance targets relate to 2011 earnings per share and 2011 revenues. For awards granted in 2010 and 2009, performance targets relate to three year cumulative earnings per share. The estimated number of shares to be earned from awards granted in 2011, 2010, and 2009 were 276, 221, and 67, respectively. Compensation expense, equal to the market value of the stock on the grant date, is recorded on a straight-line basis over the vesting period at the performance level deemed probable, as required by ASC 718-10. Compensation expense (benefit) in 2011, 2010, and 2009 was $1,725, $149, and ($419). Unamortized future compensation expense for performance-based restricted stock was $2,328 at December 31, 2011. The following table summarizes the activity related to performance share units during 2011:
|  | Shares |  |  | Weighted average remaining term (years) |  |  | Aggregate intrinsic value |
Outstanding at January 1, 2011 |  |  | 262 |  |  |  | 2.02 |  |  | $ | 2,130 |
Shares awarded |  |  | 272 |  |  |  |  |  |  |  | 2,272 |
Outstanding at December 31, 2011 |  |  | 534 |  |  |  | 1.91 |  |  |  | 3,482 |
Long-term Incentive Compensation During 2010 and 2009 we provided long-term incentive awards to key employees, other than named executive officers. Awards are variable subject to achievement of company performance targets established by the Board of Directors. For awards granted in 2010 and 2009, performance targets relate to three year cumulative earnings per share. Awards are designated in U.S. Dollars however, at the option of the company, may be paid in our common stock. If paid in stock, the corresponding number of unrestricted shares will be issued to recipients based on the stock price on the date the awards are earned. Compensation expense equal to the award level deemed probable is recorded on a straight-line basis over the vesting period as required by ASC 718-10. At December 31, 2011, $1,525 and $1,908 have been accrued for the 2010 and 2009 awards, respectively. Employees forfeit awards if they terminate employment prior to the completion of the performance period. Expensed amounts are reported as liabilities on the balance sheet. The unamortized future compensation expense for the long-term incentive awards was $938 at December 31, 2011.

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- Definition The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5444-113901 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Statement of Position (SOP) -Number 93-6 -Paragraph 53 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 14 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 123R -Paragraph 64, 65, A240 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 40 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6418621&loc=d3e17540-113929 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6406099&loc=d3e25284-112666 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901 + Details
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