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Stock-Based Compensation | 9 Months Ended
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Sep. 30, 2013
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] |
Stock-Based Compensation |
8. | STOCK-BASED COMPENSATION
The P. H. Glatfelter Amended and Restated Long Term Incentive Plan (the “LTIP”) provides for the issuance of Glatfelter common stock to eligible participants in the form of restricted stock units, restricted stock awards, non-qualified stock options, performance shares, incentive stock options and performance units. In May 2013, our shareholders approved an increase of 1,030,000 in the number shares authorized to be issued under the LTIP. Pursuant to terms of the LTIP, we have issued to eligible participants restricted stock units, performance share awards and stock only stock appreciation rights (“SOSARs”). Restricted Stock Units (“RSU”) and Performance Share Awards (“PSAs”) Awards of RSUs and PSAs are made under our LTIP. The vesting of RSUs is based solely on the passage of time, generally on a graded scale over a three, four, and five-year period. PSAs are issued annually and cliff vest on December 31 of the third year following the grant assuming the achievement of predetermined, three-year cumulative performance targets. The performance measures include a minimum, target and maximum performance level providing the grantees an opportunity to receive more or less shares than targeted depending on actual financial performance. For both RSUs and PSAs, the grant date fair value of the awards, which is equal to the closing price per common share on the date of the award, is used to determine the amount of expense to be recognized over the applicable service period. Settlement of RSUs and PSAs will be made in shares of our common stock currently held in treasury. The following table summarizes RSU and PSA activity during the first nine months of 2013 and 2012:
Units |  | 2013 |  |  | 2012 |
Balance January 1, |  |  | 847,679 |  |  |  | 788,088 |
Granted |  |  | 210,856 |  |  |  | 207,728 |
Forfeited |  |  | (40,991 | ) |  |  | (29,825 | )
Shares delivered |  |  | (113,230 | ) |  |  | (95,430 | )
Balance September 30, |  |  | 904,314 |  |  |  | 870,561 |
The amount granted in 2013 and 2012 includes PSAs of 181,670 and 161,083, respectively, exclusive of reinvested dividends. The following table sets forth aggregate RSU and PSA compensation expense for the periods indicated:
|  | September 30 |
Dollars in thousands |  | 2013 |  |  | 2012 |
Three months ended |  | $ | 892 |  |  | $ | 680 |
Nine months ended |  | $ | 2,216 |  |  |  | 1,959 |
Stock Only Stock Appreciation Rights (SOSARs) Under terms of the SOSAR, a recipient receives the right to a payment in the form of shares of common stock equal to the difference, if any, in the fair market value of one share of common stock at the time of exercising the SOSAR and the exercise price. The SOSARs vest ratably over a three year period and have a term of ten years. The following table sets forth information related to outstanding SOSARS.
|  | 2013 |  |  | 2012 |
SOSARS |  | Shares |  |  | Wtd Avg Exercise Price |  |  | Shares |  |  | Wtd Avg Exercise Price |
Outstanding at January 1, |  |  | 2,121,454 |  |  | $ | 12.93 |  |  |  | 2,298,288 |  |  | $ | 12.35 |
Granted |  |  | 361,923 |  |  |  | 18.36 |  |  |  | 364,114 |  |  |  | 15.23 |
Exercised |  |  | (435,562 | ) |  |  | 12.63 |  |  |  | (500,074 | ) |  |  | 12.06 |
Canceled / forfeited |  |  | (73,901 | ) |  |  | 16.25 |  |  |  | (12,000 | ) |  |  | 14.96 |
Outstanding at September 30, |  |  | 1,973,914 |  |  | $ | 13.87 |  |  |  | 2,150,328 |  |  | $ | 12.94 |
SOSAR Grants |  |  |  |  |  |  |  |  |  |  |  |
Weighted average grant date fair value per share |  | $ | 5.64 |  |  |  |  |  |  | $ | 4.94 |  |  |  |  |
Aggregate grant date fair value (in thousands) |  | $ | 2,042 |  |  |  |  |  |  | $ | 1,797 |  |  |  |  |
Black-Scholes assumptions |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Dividend yield |  |  | 2.18 | % |  |  |  |  |  |  | 2.31 | % |  |  |  |
Risk free rate of return |  |  | 0.99 | % |  |  |  |  |  |  | 1.02 | % |  |  |  |
Volatility |  |  | 39.62 | % |  |  |  |  |  |  | 41.48 | % |  |  |  |
Expected life |  |  | 6 yrs |  |  |  |  |  |  |  | 6 yrs |  |  |  |  |
The following table sets forth SOSAR compensation expense for the periods indicated:
|  | September 30 |
In thousands |  | 2013 |  |  | 2012 |
Three months ended |  | $ | 398 |  |  | $ | 369 |
Nine months ended |  |  | 1,198 |  |  |  | 1,095 |

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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 1 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901 Reference 2: 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 Reference 3: 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 4: 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 5: 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 6: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 14 + Details
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