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Stock-Based Compensation
 3 Months Ended
Mar. 31, 2013
Stock-Based Compensation [Abstract]  
Stock-Based Compensation

Note 8. Stock-Based Compensation

Stock compensation plans: The Company has the 2007 Management Incentive Plan (the “2007 Stock Plan”) and the 2011 Stock Incentive Plan (the “2011 Stock Plan”). Under these plans, 1,987,412 shares of authorized common stock have been reserved for issuance pursuant to grants approved by the Company’s Board of Directors (the “Board”). All grants are made at 100% of the fair value at the date of grant. Options granted under the 2007 plan vest at 20% at the date of grant and 20% on the anniversary date of the grant each year thereafter for 4 years. Options granted under the 2011 plan vest at 20% each year for 5 years. In addition, these options vest and become exercisable in full upon the occurrence of a Change of Control (as defined in the Option Award Agreements). Participants who are awarded options must exercise their options within a maximum of 10 years of the grant. At March 31, 2013, there were 987,790 shares available for grant under the 2007 Stock Plan and 2011 Stock Plan, collectively.

The Company recognizes compensation expense in the financial statements for all stock-based payments granted based upon the fair value estimated.

The fair value of option grants is estimated on the grant date using the Black-Scholes option-pricing model with the following assumptions:

 

                 
    The Three Months  Ended
March 31,		  
    2013     2012  

Expected volatility

     48.49 %      48.49 % 

Expected dividends

     0.00 %      0.00 % 

Expected term (in years)

     10.00       10.00  

Risk-free rate

     1.76 %      2.20 % 

Vesting period (in years)

     5       5  

Expected volatility is based on the historic volatility of a publicly traded company in the same industry. The risk free interest rate is based on the U.S. Treasury yield at the date the Board approved the option awards for the period (9 to 10 years) over which options are exercisable.

For the three months ended March 31, 2013 and 2012, the Company recorded stock-based compensation expense in the amount of $179 and $22, respectively. As of March 31, 2013, unrecognized stock-based compensation expense to be recognized over future periods approximated $3,013. This amount will be recognized as expense over a period of 4.2 years. The total income tax benefit recognized in the income statement for the stock-based compensation arrangements was $69.8 and $9.0, for the three months ended March 31, 2013 and 2012, respectively.

A summary of the status of the Company’s stock option plan is presented below (shares in thousands):

 

                                 
    Number of
Shares		     Weighted
Average
Price
Per Share		     Weighted
Average
Remaining
Contractual
Life (Years)		     Aggregate
Intrinsic
Value		  

Options outstanding at January 1, 2013

     887     $ 8.66                  

Granted

     100       16.73                  

Exercised

     98       5.46                  

Forfeited

     —         —                    
   

 

 

    

 

 

                  

Options outstanding at March 31, 2013

     889     $ 9.92       6.2     $ 9,136  
   

 

 

    

 

 

    

 

 

    

 

 

  

Options exercisable at March 31, 2013

     561     $ 6.64       4.4     $ 7,604  
   

 

 

    

 

 

    

 

 

    

 

 

  

Available for grant at March 31, 2013

     988                          
   

 

 

                          

At March 31, 2013, the options have a weighted-average remaining contractual life of 6.2 years.

The intrinsic value was calculated by applying the Company’s own market value for March 31, 2013. The total intrinsic value of options exercised was $1,423 for the three months ended March 31, 2013.

 

Information on the activity of options for the three months ended March 31, 2013 follows (shares in thousands):

 

                 
    2013  
    Shares     Weighted
Average
Grant Date
Fair Value		  

Non-vested options at January 1, 2013

     285     $ 15.00  

Granted

     100       16.73  

Vested

     57       15.00  

Forfeited

     —         —    
   

 

 

    

 

 

  

Non-vested options at March 31, 2013

     328     $ 15.53