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Share-Based Compensation
 3 Months Ended
Mar. 31, 2012
Share-Based Compensation [Abstract]  
Share-Based Compensation
8. 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 March 31,  
     2012      2011  

Cost of sales

    $ 85       $ 5   

Selling, general and administrative expenses

      494         213   
  

 

 

     

 

 

  

Total

    $ 579       $ 218   
  

 

 

     

 

 

  

As of March 31, 2012, unrecognized compensation expense related to the unvested portion of the Company's restricted stock units and performance awards was $2.3 million which is expected to be recognized over a weighted average period of 1.3 years.

 

Stock Option Awards

A summary of the status of the Company's stock options as of March 31, 2012 and changes during the three 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, 2012

      71,597      $ 21.26         

Options granted

      —          —           

Options exercised or exchanged

      (12,798 )      17.90         

Options canceled

      —          —           
  

 

 

          

Balance, March 31, 2012

      58,799        22.00         4.58       $ 138   
  

 

 

          

 

 

  

Exercisable, March 31, 2012

      58,799        22.00         4.58       $ 138   
  

 

 

          

 

 

  

The total intrinsic value, defined as the difference between the current market value and the grant price, of options exercised or exchanged during the three months ended March 31, 2012 was $67,000.

Restricted Stock Units and Performance Awards

A summary of the status of the Company's restricted stock units and performance awards as of March 31, 2012 and changes during the three 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, 2012

      193,981      $ 24.41   

Restricted stock units and performance awards granted

      —          —     

Restricted stock units and performance awards vested

      (20,840 )      22.95   

Restricted stock units and performance awards canceled

      (29,827 )      30.02   
  

 

 

    

Unvested restricted stock units and performance awards at March 31, 2012

      143,314        23.45   
  

 

 

    

Restricted stock units (RSU's) and performance stock awards (PSA's) are measured at the estimated fair value on the date of grant. RSU's are service-based awards and vest according to vesting schedules, which range from immediate to ratably over a three-year period. PSAs are service-based awards with a market-based vesting condition. Vesting of the market-based PSAs is dependent upon the performance of the market price of the Company's stock relative to a peer group of companies and ranges from two to three years. The unvested balance of restricted stock units and performance awards at March 31, 2012 includes approximately 92,000 PSAs included at a target level. The vesting of these awards is subject to the achievement of specified market-based conditions, and the actual number of common shares that will ultimately be issued will be determined by multiplying this number of PSAs by a payout percentage ranging from 0% to 200%.