XML 13 R17.htm IDEA: XBRL DOCUMENT
v2.4.0.8

Stock Based Compensation Expense | 6 Months Ended
--- | ---
Jun. 30, 2013
Stock Based Compensation Expense | 10. Stock Based Compensation Expense—The Company accounts for stock-based awards to employees and directors in accordance with FASB ASC 718, “Share-Based Payment,” which requires the measurement and recognition of compensation expense for all share-based payment awards made to employees and directors, including shares of common stock granted for services, employee stock options, and employee stock purchases related to the Employee Stock Purchase Plan (“employee stock purchases”) based on estimated fair values. Stock Options—During the six months ended June 30, 2013, the Company did not grant any employees options to acquire shares of common stock. Option activity within each plan is as follows:
|  | Incentive Stock Option Plans |  |  | Weighted Average Price Per Share |  |  | Exercisable Weighted Average Price Per Share |
Balance outstanding, December 31, 2012 |  |  | 705,345 |  |  | $ | 7.70 |  |  | $ | 7.95 |
Options granted |  |  | — |  |  |  | — |  |  |  |  |
Options exercised, $7.50 |  |  | (6,666 | ) |  |  | 7.50 |  |  |  |  |
Options expired or forfeited |  |  | (6,667 | ) |  |  | 7.50 |  |  |  |  |
Balance outstanding, March 31, 2013 |  |  | 692,012 |  |  | $ | 7.71 |  |  | $ | 7.96 |
Options granted |  |  | — |  |  |  | — |  |  |  |  |
Options exercised, $7.50 |  |  | (13,333 | ) |  |  | 7.50 |  |  |  |  |
Options expired or forfeited |  |  | — |  |  |  | — |  |  |  |  |
Balance outstanding, June 30, 2013 |  |  | 678,679 |  |  | $ | 7.71 |  |  | $ | 8.07 |
Information relating to stock options at June 30, 2013 summarized by exercise price is as follows:
|  | Outstanding Weighted Average |  |  | Exercisable Weighted Average |
Exercise Price Per Share |  | Shares |  |  | Remaining Life (Months) |  |  | Exercise Price |  |  | Shares |  |  | Exercise Price |
Incentive Stock Option Plan: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
$7.50 |  |  | 652,000 |  |  |  | 85 |  |  | $ | 7.50 |  |  |  | 146,000 |  |  | $ | 7.50 |
$11.32—$14.75 |  |  | 26,679 |  |  |  | 86 |  |  | $ | 12.90 |  |  |  | 16,679 |  |  | $ | 13.08 |
|  |  | 678,679 |  |  |  |  |  |  | $ | 7.71 |  |  |  | 162,679 |  |  | $ | 8.07 |
The weighted average exercise prices for options granted and exercisable and the weighted average remaining contractual life for options outstanding as of June 30, 2013 was as follows:
|  | Number of Shares |  |  | Weighted Average Exercise Price |  |  | Weighted Average Remaining Contractual Life (Months) |  |  | Intrinsic Value (thousands) |
As of June 30, 2013: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Incentive Stock Option Plans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Outstanding |  |  | 678,679 |  |  | $ | 7.71 |  |  |  | 85 |  |  | $ | 10,633 |
Expected to Vest |  |  | 674,823 |  |  | $ | 7.71 |  |  |  | 85 |  |  | $ | 10,573 |
Exercisable |  |  | 162,679 |  |  | $ | 8.07 |  |  |  | 72 |  |  | $ | 2,490 |
During the six months ended June 30, 2013 and 2012, the Company recognized stock-based compensation expense, excluding expense associated with modifications, related to stock options of $423 and $432, respectively. As of June 30, 2013, the Company had approximately $400 of unamortized stock-based compensation expenses related to unvested stock options outstanding. This amount will be recognized over the weighted-average period of 0.5 years. This projected expense will change if any stock options are granted or cancelled prior to the respective reporting periods or if there are any changes required to be made for estimated forfeitures. Restricted Shares—A status summary of non-vested shares as of and for the six months ended June 30, 2013 is presented below:
|  | Number of Shares |  |  | Weighted Average Grant- Date Fair Value |
Nonvested shares at December 31, 2012 |  |  | 245,817 |  |  | $ | 20.23 |
Granted |  |  | 145,884 |  |  | $ | 31.27 |
Vested |  |  | — |  |  | $ | — |
Forfeited |  |  | (8,000 | ) |  | $ | 22.17 |
Nonvested shares at March 31, 2013 |  |  | 383,701 |  |  | $ | 24.39 |
Granted |  |  | 8,230 |  |  | $ | 30.37 |
Vested |  |  | (8,230 | ) |  | $ | 30.37 |
Forfeited |  |  | — |  |  | $ | — |
Nonvested shares at June 30, 2013 |  |  | 383,701 |  |  | $ | 24.39 |
Restricted stock grants — During the six months ended June 30, 2013, the Company granted a total of 154,114 shares of common stock. Of these, 3,000 shares will vest one-third each year on the anniversaries of the employee’s employment date, 8,230 shares vests immediately, and the balance will cliff vest after three years of service. The shares granted in 2013 were average fair valued at $31.22 per share. The fair value was determined by using the publicly traded share price as of the date of grant. The Company is recognizing as expense the value of restricted shares over the required service period. During the six months ended June 30, 2012, the Company granted a total of 207,184 of common stock. Of these, 12,204 shares vest immediately and the balance will cliff vest after three years of service. The shares granted in 2012 were average fair valued at $20.45 per share. The fair value was determined by using the publicly traded share price as of the date of grant. The Company is recognizing as expense the value of restricted shares over the required service period. During the six months ended June 30, 2012, there were 82,640 restricted shares that vested, which had an average grant-date value of $11.73 per share and an average vest-date value of $17.58 per share. During the six months ended June 30, 2012, there were 1,367 restricted shares that were forfeited, which had an average grant date value of $20.47 per share. During the six months ended June 30, 2013 and 2012, the Company recognized stock-based compensation expense related to restricted shares of $1,297 and $599, respectively. As of June 30, 2013, the Company had approximately $7,132 of unamortized stock-based compensation expenses related to unvested restricted shares. This amount will be recognized over the weighted-average period of 2.3 years. This projected expense will change if any restricted shares are granted or cancelled prior to the respective reporting periods or if there are any changes required to be made for estimated forfeitures. Performance Based Shares—A status summary of non-vested performance based shares as of and for the six months ended June 30, 2013 is presented below:
|  | Number of Shares |  |  | Weighted Average Grant- Date Fair Value |
Nonvested shares at March 31, 2013 |  |  | — |  |  | $ | — |
Granted |  |  | 26,942 |  |  | $ | 30.13 |
Vested |  |  | — |  |  | $ | — |
Forfeited |  |  | — |  |  | $ | — |
Nonvested shares at June 30, 2013 |  |  | 26,942 |  |  | $ | 30.13 |
Performance Based Shares — During the six months ended June 30, 2013, the Company granted a total of 26,942 performance based shares that will cliff vest after three years of service. 80% of these performance based shares are based upon net income and net sales for the period commencing April 1, 2013 and ending December 31, 2015; the remaining 20% of performance based shares are based upon AVD stock price appreciation over the course of the period commencing June 6, 2013 and ending on December 31, 2015. Both parts of these awards vest in three years, but are subject to reduction to a minimum (or even zero) for meeting less than the targeted performance and to increase to a maximum of 200% for meeting in excess of the targeted performance. The performance based shares related to net income and net sales were average fair valued at $30.13 per share. The fair value was determined by using the publicly traded share price as of the date of grant. The performance based shares related to AVD stock price were average fair valued at $15.31 per share. The fair value was determined by using the Monte Carlo valuation method. The Company is recognizing as expense the value of these shares over the required service period of three years. During the six months ended June 30, 2013, the Company recognized stock-based compensation expense related to performance based shares of $26. There were no performance based shares issued by the Company prior to those issued during the quarter ended June 30, 2013. As of June 30, 2013, the Company had approximately $716 of unamortized stock-based compensation expenses related to unvested performance based shares. This amount will be recognized over the weighted-average period of 2.9 years. This projected expense will change if any performance based shares are granted or cancelled prior to the respective reporting periods or if there are any changes required to be made for estimated forfeitures.

X
- 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
Name: | us-gaap_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration