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Stock-based Compensation Plans (Tables)
9 Months Ended
Sep. 30, 2013
Stock Based Compensation Expense by Operating Expense

Stock-based compensation expense was included in the following operating expense categories as follows (in thousands):

 

     Nine months ended
September 30,
     Three months ended
September 30,
 
     2012      2013      2012      2013  

Service costs

   $ 1,545       $ 818       $ 554       $ 455   

Sales and marketing

     2,008         474         153         211   

Product development

     860         1,127         203         361   

General and administrative

     7,982         4,456         2,792         1,338   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total stock-based compensation

   $ 12,395       $ 6,875       $ 3,702       $ 2,365   
  

 

 

    

 

 

    

 

 

    

 

 

 

Income tax benefit related to stock-based compensation included in net income (loss)

   $ 3,750       $ 1,937       $ 1,088       $ 686   
  

 

 

    

 

 

    

 

 

    

 

 

 
Assumptions to Estimate Fair Value for Stock Options at Grant Date

The following weighted average assumptions were used in determining the fair value of time-vested stock option grants for the periods presented:

 

     Nine months ended
September 30,
    Three months ended
September 30,
 
     2012     2013     2012     2013  

Expected life (in years)

     4.0-6.25        4.0-6.25        4.0        4.0-6.25   

Risk-free interest rate

     0.60     1.09     0.47     1.52

Expected volatility

     70     56     69     61

Expected dividend yield

     2.00     1.74     3.11     1.00
Summary of Stock Option Activity

Stock option activity during the nine months ended September 30, 2013 is summarized as follows:

 

     Shares     Weighted average
exercise price
     Weighted average
remaining
contractual term
(in years)
     Aggregate
intrinsic value
 

Balance at December 31, 2012

     7,029,360      $ 7.67         6.28       $ 506   

Options granted

     1,729,922        4.97         

Options forfeited

     (269,792     5.64         

Options expired

     (630,903     5.82         

Options exercised

     (206,299     5.12         
  

 

 

   

 

 

       

Balance at September 30, 2013

     7,652,288      $ 7.35         6.72       $ 11,392   
  

 

 

   

 

 

       
Summary of Restricted Stock Awards and Restricted Stock Units

Restricted stock awards and restricted stock units activity during the nine months ended September 30, 2013 is summarized as follows:

 

     Shares/ Units     Weighted average
grant date
fair value
 

Unvested balance at December 31, 2012

     2,563,511      $ 5.12   

Granted

     1,093,724        4.20   

Vested

     (559,505     4.13   

Forfeited

     (187,136     4.90   
  

 

 

   

Unvested balance at September 30, 2013

     2,910,594      $ 4.98