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Stock-based Compensation Plans (Tables)
3 Months Ended
Mar. 31, 2014
Stock Based Compensation Expense by Operating Expense

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

 

     Three months ended
March 31,
 
     2013      2014  

Service costs

   $ 180       $ 282   

Sales and marketing

     60         204   

Product development

     372         659   

General and administrative

     1,295         1,738   
  

 

 

    

 

 

 

Total stock-based compensation

   $ 1,907       $ 2,883   
  

 

 

    

 

 

 

Income tax benefit related to stock-based compensation included in net income from continuing operations

   $ 509       $ 908   
  

 

 

    

 

 

 
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:

 

     Three months ended
March 31,
 
     2013      2014  

Expected life (in years)

     4.0         4.0   

Risk-free interest rate

     0.57%         1.32

Expected volatility

     57%         55%-60

Expected dividend yield

     2.33%         0.76
Summary of Stock Option Activity

Stock option activity during the three months ended March 31, 2014 is summarized as follows:

 

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

(in thousands)
 

Balance at December 31, 2013

     7,707,713      $ 7.48       $ 6.99       $ 17,148   

Options granted

     86,000        10.12         

Options forfeited

     (58,073     5.39         

Options expired

     (37,061     12.13         

Options exercised

     (206,811     6.65         
  

 

 

   

 

 

       

Balance at March 31, 2014

     7,491,768      $ 7.52       $ 6.81       $ 27,477   
  

 

 

   

 

 

       
Summary of Restricted Stock Awards and Restricted Stock Units

Restricted stock awards and restricted stock units activity during the three months ended March 31, 2014 is summarized as follows:

 

     Shares/
Units
    Weighted average
grant date
fair value
 

Unvested balance at December 31, 2013

     2,709,443      $ 5.41   

Granted

     10,000        9.86   

Vested

     (146,875     6.10   

Forfeited

     (25,750     3.89   
  

 

 

   

Unvested balance at March 31, 2014

     2,546,818      $ 5.40