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Stock Option And Purchase Plans
 12 Months Ended
Dec. 31, 2011
Stock Option And Purchase Plans [Abstract]  
Stock Option And Purchase Plans
(20) Stock Option and Purchase Plans

The Company's stock compensation program provides for the grant of restricted stock (including performance-based restricted stock), unrestricted stock, stock options and stock appreciation rights. A total of 3,000,000 shares of common stock were reserved for issuance under the 2004 Equity Plan. On May 11, 2010, the 2004 Equity Plan was replaced with the 2010 Sypris Omnibus Plan. A total of 3,655,088 shares of common stock were registered for issuance under the Plan. Additionally, awards under the 2004 Plan that are cancelled without having been fully exercised or vested are available again for new awards under the Omnibus Plan. The aggregate number of shares available for future grant as of December 31, 2011 and 2010 was 2,854,024 and 3,356,731, respectively.

The 2004 Equity Plan provides for restrictions which lapse after one, two, three or four years for certain grants or for certain other shares, one-third of the restriction is removed after three, five and seven years, respectively. The 2010 Omnibus Plan provides for restrictions which lapse after three years. During the restricted period, which is commensurate with each vesting period, the recipient has the right to receive dividends and voting rights for the shares. Generally, if a recipient leaves the Company before the end of the restricted period or if performance requirements, if any, are not met, the shares will be forfeited.

The Company has certain stock compensation plans under which options to purchase common stock may be granted to officers, key employees and non-employee directors. Options may be granted at not less than the market price on the date of grant. Stock option grants under the 2004 Equity Plan include both six and ten year lives along with graded vesting over three, four and five years of service. Stock option grants under the 2010 Omnibus Plan include a five year life along with vesting after three years of service.

Compensation expense is measured based on the fair value at the date of grant and is recognized on a straight-line basis over the vesting period. Fair value for restricted shares is equal to the stock price on the date of grant, while the fair value of each stock option grant is estimated on the date of grant using the Black-Scholes option-pricing method. The Company uses historical Company and industry data to estimate the expected price volatility, the expected option life, the expected forfeiture rate and the expected dividend yield. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant for the estimated life of the option.

The following weighted average assumptions were used to estimate the fair value of options granted using the Black-Scholes option-pricing model:

 

     Years ended
December 31,		  
     2011     2010  

Expected life (years)

      4.0        4.0   

Expected volatility

      91.3 %      90.7 % 

Risk-free interest rates

      2.24 %      2.22 % 

Expected dividend yield

      —          —     

On March 2, 2010, the Company granted 302,000 restricted stock awards under a long-term incentive program, with cliff vesting at three years of service. The Company also granted 131,889 options on March 2, 2010 with a five year life and cliff vesting at three years of service. The Company also granted 27,500 options through administrative grants during 2010.

On April 1, 2011, the Company granted 317,500 restricted stock awards under a long-term incentive program, with cliff vesting at three years of service. The Company also granted 96,000 restricted stock awards on September 1, 2011 under a retention agreement, with cliff vesting on January 1, 2015. The Company also granted 200,000 options on April 1, 2011 with a five year life and cliff vesting at three years of service.

 

A summary of the restricted stock activity is as follows:

 

     Number of
Shares		     Weighted
Average
Grant
Date Fair
Value		  

Nonvested shares at January 1, 2011

      1,026,977      $ 3.04   

Granted

      413,500        3.95   

Vested

      (264,224 )      4.34   

Forfeited

      (30,500 )      3.53   
  

 

 

    

 

 

  

Nonvested shares at December 31, 2011

      1,145,753      $ 3.05   
  

 

 

    

 

 

  

The total fair value of shares vested during 2011 and 2010 was $1,146,000 and $384,000, respectively. In conjunction with the vesting of restricted shares and payment of taxes thereon, the Company received into treasury 91,713 and 50,780 restricted shares, respectively, at an average price of $4.74 and $2.74 per share, respectively, the closing market price on the date the restricted stock vested. Such repurchased shares were immediately cancelled.

The following table summarizes option activity for the year ended December 31, 2011:

 

     Number of
Shares		     Weighted-
average
Exercise
Price Per
Share		      Weighted-
average
Remaining
Term		      Aggregate
Intrinsic
Value		  

Outstanding at January 1, 2011

      1,312,019      $ 4.96         

Granted

      200,000        4.11         

Exercised

      (14,185 )      4.49         

Forfeited

      (12,500 )      1.81         

Expired

      (300,401 )      7.96         
  

 

 

    

 

 

        

Outstanding at December 31, 2011

      1,184,933      $ 4.10         2.29       $ 1,277,000   
  

 

 

    

 

 

        

 

 

  

Exercisable at December 31, 2011

      395,444      $ 7.35         0.73       $ 43,000   
  

 

 

    

 

 

        

 

 

  

The weighted average grant date fair value based on the Black-Scholes option pricing model for options granted in the years ended December 31, 2011 and 2010 was $2.69 and $2.03 per share, respectively. There were 14,185 options exercised in 2011 and no options exercised 2010. The total intrinsic value of options exercised was $3,000 during the year ended December 31, 2011.

As of December 31, 2011, there was $2,261,000 of total unrecognized compensation cost, after estimated forfeitures, related to unvested share-based compensation granted under the plans. That cost is expected to be recognized over a weighted-average period of 1.2 years. The total fair value of option shares vested was $43,000 and $146,000 during the years ended December 31, 2011 and 2010, respectively.