v2.4.0.6
Share Based Compensation
 3 Months Ended
Mar. 31, 2012
Share Based Compensation
  9. Share Based Compensation

 

The Company’s 2010 Omnibus Incentive Plan (the “Plan”) permits the Company to grant to its officers, employees and non-employee directors incentive compensation directly linked to the price of the Company’s stock. The Plan authorizes up to an aggregate of 6,045,511 shares of Company stock for awards of options to purchase shares of the Company’s common stock, restricted stock, restricted stock units (“RSU”), performance shares or appreciation rights. Shares used may be either newly issued shares or treasury shares or both. The aggregate number of shares of common stock for which awards may be issued may not exceed 6,045,511 shares, subject to the authority of the Company’s board of directors to adjust this amount in the event of a consolidation, reorganization, stock dividend, stock split, recapitalization or similar transaction affecting the Company’s common stock. As of March 31, 2012, approximately 5,225,000 shares of Company common stock remained available for grants under the Plan.

  

 The Company recognizes compensation expense under FASB ASC 718-10-25 for its share-based payments based on the fair value of the awards. The Company grants stock options at prices equal to the closing stock price of the Company’s stock on the dates the options are granted. The options have a term of ten years from the date of grant and vest primarily in equal annual installments over the four-year period following the date of grant for employee options. Employees have three months after the employment relationship ends to exercise all vested options. The fair value of each option grant is separately estimated for each vesting date. The fair value of each option is amortized into compensation expense on a straight-line basis between the grant date for the award and each vesting date. The Company has estimated the fair value of all stock option awards as of the date of the grant by applying the Black-Scholes-Merton multiple-option pricing valuation model. The application of this valuation model involves assumptions that are judgmental and highly sensitive in the determination of compensation expense. The Company grants restricted shares and RSUs with a grant date value equal to the closing stock price of the Company’s stock on the dates the shares or units are granted.

 

 The following schedule shows all options granted, exercised, and expired under the Plan for the three months ended March 31, 2012 and 2011:

 

    2012     2011  
    Shares     Weighted
Average
Exercise Price		     Shares     Weighted
Average
Exercise Price		  
Outstanding at beginning of period     3,771,788     $ 10.96       4,126,926     $ 10.46  
Granted     —       —       175,000       14.98  
Exercised     (93,083 )     8.71       (75,736 )     10.93  
Cancelled or terminated     (55,622 )     13.19       (24,065 )     12.41  
Outstanding end of period     3,623,083     $ 10.98       4,202,125     $ 10.63  

 

 During the period ended March 31, 2012, no options were granted. During the period ended March 31, 2011, the weighted average grant date fair value of options granted was approximately $7.24.

 

A summary of the Company’s restricted stock and RSU activity for the three months ended March 31, 2012 and 2011 is shown below:

 

    2012     2011  
    Shares or
Units		     Weighted
Average
Grant Date
Fair Value		     Shares
or Units		     Weighted
Average
Grant Date
Fair Value		  
Non-vested at beginning of year     291,230     $ 18.32       139,388     $ 14.04  
Granted     342,428       27.25       75,884       19.14  
Vested     (22,097 )     18.45       (12,500 )     14.25  
Forfeited     —       —       —       —  
Non-vested at end of period     611,561     $ 23.31       202,772     $ 15.93  

 

Compensation expense for all share-based payments under ASC 718-10-30 was approximately $1,181 and $1,459 for the three months ended March 31, 2012 and 2011, respectively.

 

 As of March 31, 2012, there was approximately $13,757 of total unrecognized compensation cost related to non-vested share-based compensation arrangements.