Stock-Based Compensation

6 Months Ended

Jun. 30, 2013

Stock-Based Compensation

9.   STOCK-BASED COMPENSATION

For the second quarter and first six months 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 June 30,						Six Months Ended June 30,
(in thousands)	2013			2012			2013			2012
Cost of services	$	1,014		$	884		$	2,187		$	1,861
Operating expenses		2,267			2,102			4,526			3,977
Total stock-based compensation before tax	$	3,281		$	2,986		$	6,713		$	5,838
Income tax benefit		(944	)		(990	)		(2,047	)		(1,866	)

During the first six months of 2013, the Company issued approximately 255,000 shares to its employees and 14,000 shares to its non-employee directors under the Company’s share-based compensation plans.

During the first six months of 2013, the Company granted approximately 97,000 restricted stock units (“RSUs”) with a total fair value of approximately $2.6 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 on the grant date.

As of June 30, 2013, the Company had approximately $14.7 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 2.2 years.