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STOCK-BASED COMPENSATION
 9 Months Ended
Sep. 30, 2012
Disclosure Of Compensation Related Costs, Share-Based Payments  
STOCK-BASED COMPENSATION
4.
STOCK-BASED COMPENSATION
 
The Company reserved 2,250,000 shares of common stock under a Stock Incentive Plan with a term of ten years. This plan provides for the issuance of various forms of stock incentives, including, among others, incentive and non-qualified stock options and restricted stock. As of September 30, 2012, there were approximately 616,000 shares available for grants.
 
Stock-based compensation for the three and nine months ended September 30, 2012 and 2011 were as follows:
 
(in thousands)
  
Three months ended
September 30,
    
Nine months ended
September 30,
  
   
2012
    
2011
    
2012
    
2011
  
Pre-tax expense
$ 380 $ 372 $ 1,135 $ 1,090
After tax expense
 $ 245 $ 240 $ 732 $ 703
 
Stock Options
 
Transactions involving Marine Products stock options for the nine months ended September 30, 2012 were as follows:
 
   
Shares
    
Weighted
Average
Exercise Price
    
Weighted
Average
Remaining
Contractual
Life
    
Aggregate
Intrinsic
Value
  
Outstanding at December 31, 2011
 564,735 $ 4.08
0.6 years
Granted
 - - N/A
Exercised
 (306,375 ) 2.67 N/A
Forfeited
 (9,827 ) 2.67 N/A
Expired
     -       -       N/A        
Outstanding and exercisable at September 30, 2012
     248,533     $ 5.87    
0.5 years
     $ 22,370  
 
The total intrinsic value of stock options exercised was approximately $817,000 during the nine months ended September 30, 2012 and approximately $602,000 during the nine months ended September 30, 2011. Tax benefits associated with the exercise of non-qualified stock options during the nine months ended September 30, 2012 of approximately $51,000 were credited to capital in excess of par value and are classified as financing cash flows. There were no recognized excess tax benefits associated with the exercise of stock options during the nine months ended September 30, 2011, since all of the stock options exercised in 2011 were incentive stock options which do not generate tax deductions for the Company.
Restricted Stock
 
The following is a summary of the changes in non-vested restricted shares for the nine months ended September 30, 2012:
 
     
Shares
      
Weighted
Average Grant-Date Fair Value
  
Non-vested shares at December 31, 2011
 971,000     $ 6.16
Granted
 362,000       5.59
Vested
 (194,300 )     6.49  
Forfeited
     (5,200 )     5.59  
Non-vested shares at September 30, 2012
     1,133,500     $ 6.47  
 
The total fair value of shares vested was approximately $1,168,000 during the nine months ended September 30, 2012 and $1,312,000 during the nine months ended September 30, 2011. Tax benefits for compensation tax deductions in excess of compensation expense totaling approximately $96,000 for the nine months ended September 30, 2012 and $77,000 for the nine months ended September 30, 2011 were credited to capital in excess of par value and classified as financing cash flows.
 
Other Information
 
As of September 30, 2012, total unrecognized compensation cost related to non-vested restricted shares was approximately $5,923,000. This cost is expected to be recognized over a weighted-average period of 3.9 years.