STOCK-BASED COMPENSATION

6 Months Ended

Jun. 30, 2012

STOCK-BASED COMPENSATION

11.    STOCK-BASED COMPENSATION

For the second quarter and first six months of 2012 and 2011, stock-based compensation expense was reflected in the Company’s unaudited condensed consolidated statements of income as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
(in thousands)	2012			2011			2012			2011
Cost of services	$	884		$	553		$	1,861		$	1,350
Operating expenses		2,102			1,312			3,977			3,050
Total stock-based compensation before tax	$	2,986		$	1,865		$	5,838		$	4,400
Income tax benefit		(990	)		(613	)		(1,866	)		(1,499	)

During the first six months of 2012, the Company issued approximately 237,000 shares to its employees under the Company’s share-based compensation plans.

During the first six months of 2012, the Company granted approximately 122,000 restricted stock units (“RSUs”) with a total fair value of $4.2 million. Approximately 52,000 RSUs were issued in connection with the election by employees to receive 50% of their 2012 target incentive compensation under the Company’s Corporate Incentive Compensation Plan (the “CICP”) in the form of RSUs instead of cash. The total stock-based compensation of approximately $1.9 million associated with this RSU grant will be recognized over one year.

As of June 30, 2012, the Company had approximately $12 million of unrecognized stock-based compensation expense, net of estimated forfeitures, related to all unvested RSUs and unvested stock options that is expected to be recognized over a weighted-average period of 2.1 years.