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Share-Based Compensation Plans
 12 Months Ended
Dec. 31, 2012
Share-Based Compensation Plans [Abstract]  
SHARE-BASED COMPENSATION PLANS
11. SHARE-BASED COMPENSATION PLANS:

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, RSUs and PSAs. In addition, the Company has one inactive stock option plan, the 1995 Stock Options Plan for Nonemployee Directors, under which previously granted options remain outstanding. The plans provide that options become exercisable according to vesting schedules, which range from immediate to ratably over a 60-month period. Options terminate 10 years from the date of grant. The plans also provide for other equity instruments, such as RSUs and PSAs, which grant the right to receive a specified number of shares over a specified period of time. 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 either a performance or market-based vesting condition. Vesting of the performance-based PSAs is dependent upon meeting certain strategic goals and ranges from a three-month period to a three-year period. Vesting of the market-based PSAs is dependent upon the performance of the market price of the Company’s stock relative to a comparator group of companies and ranges from two to three years. The following summarizes share-based compensation expense recorded:

 

                         
    Year ended December 31,  
    2012     2011     2010  
    (in thousands)  

Cost of sales

   $ 432     $ 143     $ 49  

Selling, general and administrative expenses

     2,616       1,318       748  
   

 

 

    

 

 

    

 

 

  

Total

   $ 3,048     $ 1,461     $ 797  
   

 

 

    

 

 

    

 

 

  

As of December 31, 2012, unrecognized compensation expense related to the unvested portion of the Company’s RSUs and PSAs was $3.1 million, which is expected to be recognized over a weighted average period of 1.6 years.

There were 227,177 shares of common stock available for future issuance under the Company’s stock compensation plans at December 31, 2012; an additional 47,000 options and 243,141 RSUs and PSAs have been granted and remain outstanding. There were 307,984 and 408,434 shares of common stock available for future issuance under the Company’s stock compensation plans at December 31, 2011 and 2010, respectively.

Stock Options Awards

A summary of status of the Company’s stock options as of December 31, 2012 and changes during the three years then ended is presented below:

 

                                 
    Options     Weighted
Average
Exercise
Price		     Weighted
Average
Remaining
Contractual
Life		     Aggregate
Intrinsic
Value		  
                (in years)     (in thousands)  

Balance, December 31, 2009

     213,103     $ 15.26                  

Options granted

     24,000       24.15                  

Options exercised or exchanged

     (87,671 )      13.63                  

Options cancelled

     (4,223 )      17.90                  
   

 

 

                          

Balance, December 31, 2010

     145,209       17.64                  

Options granted

     —          —                     

Options exercised or exchanged

     (73,612 )      14.12                  

Options cancelled

     —         —                     
   

 

 

                          

Balance, December 31, 2011

     71,597       21.26                  

Options granted

     —         —                     

Options exercised or exchanged

     (24,597 )      17.58                  

Options cancelled

     —         —                     
   

 

 

                          

Balance, December 31, 2012

     47,000       23.19                  
   

 

 

    

 

 

                  

Exercisable and Outstanding, December 31, 2012

     47,000       23.19       4.86     $ 122  
   

 

 

                          

The total intrinsic value, defined as the difference between the current market value and the grant price, of options exercised during the years ended December 31, 2012, 2011 and 2010 was $0.1 million, $0.8 million and $0.8 million, respectively.

The following table summarizes information about stock options outstanding at December 31, 2012:

 

                                         

Options Outstanding

     Options Exercisable  

Range of

Exercise Prices

Per Share

   Number
of
Options		     Weighted
Average
Remaining
Contractual
Life (years)		     Weighted
Average
Exercise
Price Per
Share		     Number
of
Options		     Weighted
Average
Exercise
Price Per
Share		  

$10.31

     7,000       0.36     $ 10.31       7,000     $ 10.31  

$14.00

     2,000       1.36       14.00       2,000       14.00  

$22.07 - $24.15

     28,000       6.55       23.85       28,000       23.85  

$28.31

     4,000       3.36       28.31       4,000       28.31  

$34.77

     6,000       4.41       34.77       6,000       34.77  
   

 

 

                    

 

 

          
      47,000       4.86       23.19       47,000       23.19  
   

 

 

                    

 

 

          

There were no options granted during 2012 or 2011; the weighted average grant date fair value of options granted during 2010 was $15.35. The fair value of options granted in 2010 was estimated as of the date of grant using the Black-Scholes-Merton option-pricing model with the assumptions noted in the following table. The risk-free interest rate is based on the United States Treasury yield curve corresponding to the expected life of the option in effect at the time of the grant. The expected life is based on the historical exercise pattern of similar groups of employees. Expected volatility is based on the historical volatility of the Company’s stock.

 

         
Year Ended December 31, 2010      

Risk-free interest rate

     3.74 % 

Expected dividend yield

     0 % 

Expected volatility

     51.19 % 

Expected lives (in years)

     9.25  

Restricted Stock Units and Performance Awards

A summary of status of the Company’s RSUs and PSAs as of December 31, 2012 and changes during the three years then ended is presented below:

 

                 
    Number of
RSUs and PSAs		     Weighted Average Grant
Date Fair Value		  

Unvested RSUs and PSAs at December 31, 2009

     127,487     $ 41.66  

Unvested RSUs and PSAs cancelled

     (54,986 )      44.70  

Unvested RSUs and PSAs vested

     (16,658 )      47.27  
   

 

 

          

Unvested RSUs and PSAs at December 31, 2010

     55,843       37.00  

RSUs and PSAs granted

     174,891       23.32  

Unvested RSUs and PSAs cancelled

     (20,997 )      47.46  

Unvested RSUs and PSAs vested

     (15,756 )      26.27  
   

 

 

          

Unvested RSUs and PSAs at December 31, 2011

     193,981       24.41  

RSUs and PSAs granted

     115,306       29.06  

Unvested RSUs and PSAs cancelled

     (39,306 )      28.44  

Unvested RSUs and PSAs vested

     (26,840 )      23.13  
   

 

 

          

Unvested RSUs and PSAs at December 31, 2012

     243,141     $ 26.11  
   

 

 

          

The unvested balance of RSUs and PSAs at December 31, 2012 includes approximately 172,000 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%.

The total fair value of RSUs and PSAs vested during the years ended December 31, 2012, 2011, and 2010 was $0.6 million, $0.4 million, and $0.8 million, respectively.

Stock Awards

For the years ended December 31, 2012, 2011 and 2010, stock awards were granted to non-employee directors, which vested immediately upon issuance, as follows: 4,807 shares; 6,261 shares; and 6,615 shares, respectively. The Company recorded compensation expense based on the fair market value per share of the awards on the grant date of $23.40 in 2012, $25.15 in 2011, and $23.81 in 2010.