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Share-Based Compensation
 9 Months Ended
Sep. 30, 2012
Share-Based Compensation [Abstract]  
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 one inactive stock option plan, the 1995 Stock Option Plan for Nonemployee Directors, 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 September 30,     Nine months ended September 30,  
    2012     2011     2012     2011  

Cost of sales

   $ 145     $ 4     $ 287     $ 13  

Selling, general and administrative expenses

     780       67       1,912       506  
   

 

 

    

 

 

    

 

 

    

 

 

  

Total

   $ 925     $ 71     $ 2,199     $ 519  
   

 

 

    

 

 

    

 

 

    

 

 

  

As of September 30, 2012, unrecognized compensation expense related to the unvested portion of the Company’s restricted stock units and performance awards was $4.0 million which is expected to be recognized over a weighted average period of 1.7 years.

 

Stock Option Awards

A summary of the status of the Company’s stock options as of September 30, 2012 and changes during the nine 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

     (24,597 )      17.58                  

Options canceled

     —                            
   

 

 

                          

Balance, September 30, 2012

     47,000       23.19       5.11     $ 144  
   

 

 

                    

 

 

  

Exercisable, September 30, 2012

     47,000       23.19       5.11     $ 144  
   

 

 

                    

 

 

  

The total intrinsic value, defined as the difference between the current market value and the grant price, of options exercised or exchanged during the nine months ended September 30, 2012 was $0.1 million.

Restricted Stock Units and Performance Awards

A summary of the status of the Company’s restricted stock units and performance awards as of September 30, 2012 and changes during the nine 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

     115,306       29.06  

Restricted stock units and performance awards vested

     (26,840 )      23.13  

Restricted stock units and performance awards canceled

     (35,215 )      29.02  
   

 

 

          

Unvested restricted stock units and performance awards at September 30, 2012

     247,232       26.06  
   

 

 

          

Restricted stock units (RSUs) and performance stock awards (PSAs) are measured at the estimated fair value on the date of grant. RSUs 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 September 30, 2012 includes approximately 174,000 PSAs at a target level of performance; 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%.

Stock Awards

For the nine months ended September 30, 2012 and 2011, stock awards of 4,807 and 6,261 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 $23.40 and $25.15 in 2012 and 2011, respectively.