Stock-Based Compensation

9 Months Ended

Sep. 30, 2013

Stock-Based Compensation

9.   STOCK-BASED COMPENSATION

For the third quarter and first nine 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             September 30,				Nine Months Ended         September 30,
(in thousands)	2013		2012		2013		2012
Cost of services	$	947	$	849	$	3,134	$	2,710
Operating expenses		2,053		1,935		6,579		5,912
Total stock-based compensation before tax	$	3,000	$	2,784	$	9,713	$	8,622
Income tax benefit		(893)		(915)		(2,941)		(2,781)

During the first nine months of 2013, the Company issued approximately 344,000 shares to its employees and 14,000 shares to its non-employee directors under the Company’s share-based compensation plans.

During the first nine months of 2013, the Company granted approximately 114,000 restricted stock units (“RSUs”) with a total fair value of approximately $3.3 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 September 30, 2013, the Company had approximately $12.2 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.