STOCK-BASED COMPENSATION

3 Months Ended

Mar. 31, 2013

STOCK-BASED COMPENSATION

10.   STOCK-BASED COMPENSATION

For the first quarter of 2013 and 2012, stock-based compensation expense was reflected in the Company’s unaudited condensed consolidated statements of operations as follows:

	Three Months Ended March 31,
(in thousands)	2013		2012
Cost of services	$	1,173	$	977
Operating expenses		2,259		1,875
Total stock-based compensation before tax	$	3,432	$	2,852
Income tax benefit		(1,103)		(876)

During the first quarter of 2013, the Company issued approximately 138,000 shares to its employees under the Company’s share-based compensation plans.

During the first quarter of 2013, the Company granted approximately 77,000 restricted stock units (“RSUs”) with a total fair value of $2.1 million. Approximately 59,000 RSUs were issued in connection with the election by employees to receive 50% of their 2013 target incentive compensation under the Company’s Corporate Incentive Compensation Plan (the “CICP”) in the form of RSUs instead of cash. Stock-based compensation of approximately $1.7 million associated with this RSU grant will be recognized over a one year period beginning at the grant date.

As of March 31, 2013, the Company had approximately $17.7 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 2.3 years.