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Share-Based Payments
 3 Months Ended
Mar. 31, 2013
Share-Based Payments
Note 16 — Share-Based Payments

The Company’s 2002 Stock Award and Incentive Plan (the “Plan”) provides for the awarding of stock options and restricted stock to employees, officers and non-employee directors. Under the Plan, the Company grants directors, certain executives and other key employees restricted common stock, with vesting contingent upon completion of specified service periods ranging from one to five years. The Company also grants certain executives performance-based awards, with vesting contingent upon the Company’s achievement of specified financial goals.  The Plan is more fully described in Notes 14 and 17 to the Consolidated Financial Statements in the Company’s 2012 Annual Report on Form 10-K.

The following table summarizes the total share-based compensation expense and related tax benefits recognized for the three months ended March 31, 2012 and 2013 (in thousands):
 
   
Three Months Ended March 31,
  
   
2012
    
2013
  
Restricted stock compensation expense
  
$
338
    
$
207
  
Tax benefit related to restricted stock compensation
  
$
127
    
$
79
  
 
Stock option activity pursuant to the Plan for the three months ended March 31, 2013 is summarized as follows:
 
   
Plan Stock Options
  
   
Number of
Shares
    
Weighted
Average
Exercise
Price
  
Outstanding, December 31, 2012
    
134,644
    
$
   19.82
  
Granted
    
―
      
―
  
Exercised
    
―
      
―
  
Cancelled
    
―
      
―
  
Outstanding, March 31, 2013
    
134,644
      
19.82
  
 
Restricted stock award activity pursuant to the Plan for the three months ended March 31, 2013 is summarized as follows:
 
   
Restricted Stock Awards
  
   
Number of
Shares
    
Weighted
Average
Grant
Price
  
             
Outstanding, December 31, 2012
    
95,315
    
$
16.75
  
Awarded
    
339,770
      
12.52
  
Released
    
 (41,706)
      
14.78
  
Forfeited
    
 (1,500)
      
18.24
  
Outstanding, March 31, 2013
    
391,879
      
13.29
  
 
 Non-Employee Stock Warrants

In September 2012, we granted 1,500,000 stock warrants with an exercise price of $16.28 per share and a five year term to a third party as partial consideration for the exclusive right to use certain recognition technology in connection with our toy products. The exercise price of the 2012 stock warrants is equal to the volume-weighted average price of our common stock over the five trading days preceding the date of grant. All warrants vest upon grant and are exercisable over the terms of the warrants.

At December 31, 2012 and March 31, 2013, we had 1,500,000 stock warrants outstanding with an exercise price of $16.28 per share and an expiration date of September 12, 2017.

We measure the fair value of our warrants granted on the measurement date. The fair value of the 2012 stock warrant is capitalized as an intangible asset and will be amortized to expense in our consolidated statements of operations when the related product is released and the related net sales are recognized, which is expected to be in the third quarter of 2013. For the three months ended March 31, 2012 and 2013 there was no amortization expense related to the warrants.