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Share-Based Compensation
 6 Months Ended
Jun. 30, 2011
Share-Based Compensation  
Share-Based Compensation
7. Share-based Compensation

The Company has one active stock incentive plan for employees and directors, the 2007 Stock Incentive Plan, which provides for awards of stock options to purchase shares of common stock, stock appreciation rights, restricted and unrestricted shares of common stock, restricted stock units and performance awards. In addition, the Company has two inactive stock option plans, the 1995 Stock Option Plan for Nonemployee Directors and the Amended 1995 Stock Incentive Plan, under which previously granted options remain outstanding.

The Company recognizes compensation cost as service is rendered based on the fair value of the awards. The following summarizes share-based compensation expense recorded (in thousands):

 

     Three months ended June 30,      Six months ended June 30,  
     2011      2010      2011      2010  

Cost of sales

    $ 4       $ 8       $ 9       $ 35   

Selling, general and administrative expenses

      227         45       $ 440       $ 511   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total

    $ 231       $ 53       $ 449       $ 546   
  

 

 

     

 

 

     

 

 

     

 

 

  

As of June 30, 2011, unrecognized compensation expense related to the unvested portion of the Company's restricted stock units and performance awards was $247,000, which is expected to be recognized over a weighted average period of 0.9 years.

 

Stock Option Awards

A summary of the status of the Company's stock options as of June 30, 2011 and changes during the six months then ended is presented below:

 

     Options
Outstanding		     Weighted
Average
Exercise
Price per
Share		      Weighted
Average
Remaining
Contractual
Life		      Aggregate
Intrinsic Value		  
                         (In thousands)  

Balance, January 1, 2011

      145,209      $ 17.64         

Options granted

      —             

Options exercised or exchanged

      (69,612 )      14.12         

Options canceled

      —             
  

 

 

          

Balance, June 30, 2011

      75,597        20.88         4.31       $ 453   
  

 

 

          

 

 

  

Exercisable, June 30, 2011

      75,597        20.88         4.31       $ 453   
  

 

 

          

 

 

  

The total intrinsic value, defined as the difference between the current market value and the grant price, of options exercised or exchanged during the six months ended June 30, 2011 was $715,000.

Restricted Stock Units and Performance Awards

A summary of the status of the Company's restricted stock units and performance awards as of June 30, 2011 and changes during the six months then ended is presented below:

 

     Number of
Restricted Stock
Units and
Performance
Awards		     Weighted
Average Grant
Date Fair Value		  

Unvested restricted stock units and performance awards at January 1, 2011

      55,843      $ 37.00   

Restricted stock units and performance awards granted

      18,000        23.79   

Restricted stock units and performance awards vested

      (8,443 )      25.60   

Restricted stock units and performance awards canceled

      (21,774 )      46.94   
  

 

 

    

Unvested restricted stock units and performance awards at June 30, 2011

      43,626        28.78   
  

 

 

    

Restricted stock units (RSU's) and performance stock awards (PSA's) are measured at market value on the date of grant. RSU's are service-based awards and generally vest equally over a three-year period. PSA's are performance and service-based awards. PSA's are awarded at the end of a three-year performance period, if certain performance objectives are met, and vest equally over a two-year period. The Company recognizes compensation expense related to the performance awards based on the probable outcome of the performance conditions.

Stock Awards

For the six months ended June 30, 2011 and 2010, stock awards of 6,261 and 0 shares, respectively, were granted to non-employee directors, which vested immediately upon issuance. The Company recorded compensation expense based on the fair market value per share of the awards on the grant date of $25.15 in 2011.