v2.4.0.8
Stock-based Compensation
 12 Months Ended
Dec. 31, 2013
Stock-based Compensation [Abstract]  
Stock-based Compensation
(9)       Stock-based Compensation
 
The Company’s 2006 Equity Compensation Plan (2006 Plan) provides for the granting of incentive stock options, non-statutory stock options (NSO’s), shares of restricted stock, stock appreciation rights and supplemental bonuses consisting of shares of common stock, cash or a combination thereof to employees, directors, and consultants. On December 3, 2012, the Company’s stockholders approved an increase in the number of shares of common stock available under the plan from 3,000,000 to 5,400,000. The 2006 Plan is administered by a committee of the Company’s board of directors which has discretion to set the exercise price and term of any option granted, provided that the term may not exceed ten years. Shares of restricted stock granted under the 2006 Plan are valued at the closing market price of the Company’s common stock on the date of grant and have typically vested over a one- to five-year period. All share and per share amounts in this footnote have been adjusted to reflect the impact of the three-for-one stock split described in note 8.
  
The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model. The Company uses historical option exercise data for similar employee groups, as well as the vesting period and contractual term, to estimate the expected term of options granted; the expected term represents the period of time that options granted are expected to be outstanding. Expected volatility is based on historical volatility of the Company’s stock. The risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of the grant. During the year ended December 31, 2013, options to purchase 55,000 shares of stock, with a weighted average exercise price of $41.93, were granted at a weighted average fair value of $11.54. The weighted average fair value of options granted during the years ended December 31, 2012 and 2011, was $9.13 and $6.58, respectively. The following weighted average assumptions were used in valuing the grants for the years ended December 31:
 
   
2013
    
2012
    
2011
  
Expected term (in years)
     3.1       3.0       3.0  
Expected volatility
     39 %     46 %     54 %
Risk-free interest rate
     0.5 %     0.3 %     1.4 %
Expected dividend yield
     0 %     0 %     0 %
 
The following is a summary of option activity under all stock option plans during the year ended December 31, 2013:
 
   
 
 
Shares
    
Weighted
Average
Exercise Price
    
Weighted-Average
Remaining
Contractual
Life (Years)
    
Aggregate Intrinsic
Value (amounts in
thousands)
  
                         
Outstanding at January 1, 2013
     438,693     $ 10.72              
                             
Granted
     55,000       41.93              
Exercised
     (229,506 )     7.62              
                             
Outstanding at December 31, 2013
     264,187       19.90      2.1     $ 10,133  
                               
Exercisable at December 31, 2013
     254,187       18.94      2.0       9,994  
 
The aggregate intrinsic value of options exercised during the years ended December 31, 2013, 2012, and 2011 was $8,300,000, $9,614,000, and $5,768,000, respectively.
 
The following is a summary of restricted stock activity during the year ended December 31, 2013:
 
   
 
 
Shares
    
Weighted
Average
Grant-Date Fair
Value
  
             
Non-vested at January 1, 2013
     205,650     $ 27.94  
                 
Granted
     126,000       46.80  
Vested
     (73,500 )     26.70  
Forfeited
     (21,200 )     37.25  
                 
Non-vested at December 31, 2013
     236,950       37.24  
 
The total fair value of shares vested during 2013, 2012, and 2011, was $2,868,000, $2,644,000, and $255,000, respectively.
 
 
During the years ended December 31, 2013, 2012, and 2011, the Company recognized $3,560,000, $2,044,000, and $2,889,000, respectively, in stock-based compensation expense. No income tax benefit was recognized related to stock compensation expense recorded for Incentive Stock Options. Total unrecognized compensation cost related to unvested stock-based awards as of December 31, 2013, was $6,606,000 and is expected to be recognized over the remaining weighted average vesting term of 2.2 years.