v2.3.0.15
Share-Based Compensation
3 Months Ended
Sep. 30, 2011
Share-Based Compensation [Abstract] 
Share-Based Compensation

Note 15 – Share-Based Compensation

The Company records the fair value of stock-based compensation grants as an expense. Total share-based compensation expense for the three month periods ended September 30, 2011 and 2010 was $1.1 million and $0.9 million, respectively.

Stock Options

In order to determine the fair value of stock options on the date of grant, the Company applies the Black-Scholes option-pricing model. Inherent in this model are assumptions related to expected stock-price volatility, option life, risk-free interest rate and dividend yield. While the risk-free interest rate and dividend yield are less subjective assumptions, typically based on factual data derived from public sources, the expected stock-price volatility and option life assumptions require a greater level of judgment.

The Company uses an expected stock-price volatility assumption that is based on historical implied volatilities of the underlying stock which is obtained from public data sources. The risk-free interest rate is based on the yield of U.S. Treasury securities with a term equal to that of the option. With regard to the weighted-average option life assumption, the Company considers the exercise behavior of past grants and models the pattern of aggregate exercises. Patterns are determined on specific criteria of the aggregate pool of optionees. Forfeiture rates are based on the Company’s historical data for stock option forfeitures.

A summary of the transactions during the three months ended September 30, 2011 with respect to the Company’s stock options is as follows:

 

                         
    Shares     Weighted-Average
Exercise Price		     Aggregate
Intrinsic Value  (1)
(in thousands)		  

Outstanding at June 30, 2011

     519,699     $ 26.45       —    

Granted

     —         —         —    

Exercised

     —         —         —    

Expired

     (70,052 )    $ 21.63       —    

Forfeited

     (1,370 )    $ 38.62       —    
   

 

 

                  

Outstanding at September 30, 2011

     448,277     $ 27.16       —    
   

 

 

                  

 

(1) The intrinsic value of a stock option is the amount by which the current market value of the underlying stock exceeds the exercise price of the option.

The table below sets forth stock options exercisable:

 

                                 
    Shares     Weighted-
Average
Exercise
Price		     Aggregate
Intrinsic
Value (1)
(in thousands)		     Weighted-
Average
Contractual
Life
Remaining
in Years		  

Exercisable at September 30, 2011

     426,750     $ 26.43       —         2.26  

Exercisable at June 30, 2011

     487,595     $ 24.89       —         2.17  

 

(1) The intrinsic value of a stock option is the amount by which the current market value of the underlying stock exceeds the exercise price of the option.

As of September 30, 2011, there was $0.2 million of total unrecognized compensation cost related to nonvested share-based compensation arrangements granted under the plan. The cost is expected to be recognized over less than one year.

Restricted Stock Awards

Restricted stock awards (“RSAs”) consist of shares of common stock the Company issued to employees and nonemployee directors. Upon issuance, RSAs become outstanding and have voting rights. The shares issued to employees are subject to forfeiture and to restrictions which limit the sale or transfer during the restriction period. The fair value of the RSAs is determined on the date of grant based on the market price of the Company’s common stock and is recognized as compensation expense. The value of RSAs granted to employees is amortized over their three-year vesting period, while the value of RSAs granted to nonemployee directors is amortized over a two- to nine-year vesting period.

 

Information concerning RSAs awarded during the three month period ended September 30, 2011 is as follows:

 

                 
    Number of
Shares		     Weighted-Average
Grant Date
Fair Value		  

Nonvested at June 30, 2011

     42,483     $ 33.96  

Awarded

     15     $ .83  

Forfeited

     (2,255 )    $ 19.50  

Released

     (10,015 )    $ 70.28  
   

 

 

          

Nonvested at September 30, 2011

     30,228     $ 23.00  
   

 

 

          

As of September 30, 2011, there was $0.2 million of total unrecognized compensation cost related to nonvested share-based compensation arrangements granted under the plan. The cost is expected to be recognized over a weighted-average period of approximately one year.

Restricted Stock Units

Restricted stock units (“RSUs”) settle on a one-for-one basis in shares of the Company’s common stock and vest in accordance with the terms of the plan pursuant to which they were granted (the 2006 Stock Incentive Plan and the 2010 Omnibus Incentive Compensation Plan) or the Executive Severance Plan, as applicable. On September 30, 2009, the Company’s Board of Directors approved an offer to exchange approximately 98,000 previously issued RSUs for new RSUs on a one-for-one basis. The fair value of the RSUs is determined on the date of grant based on the market price of the Company’s common stock and is recognized as compensation expense.

Information concerning RSUs awarded during the three month period ended September 30, 2011 is as follows:

 

                 
    Number of
Shares		     Weighted-Average
Grant Date
Fair Value		  

Nonvested at June 30, 2011

     1,853,957     $ 5.49  

Awarded

     1,403,913     $ .72  

Forfeited

     (32,960 )    $ 6.39  

Released

     (23,086 )    $ 46.09  
   

 

 

          

Nonvested at September 30, 2011

     3,201,824     $ 3.10  
   

 

 

          

As of September 30, 2011, there was $5.1 million of total unrecognized compensation cost related to nonvested share-based compensation arrangements granted under the Plans. The cost is expected to be recognized over a weighted-average period of 2.16 years.