EQUITY-BASED COMPENSATION PLANS

3 Months Ended

Mar. 31, 2012

EQUITY-BASED COMPENSATION PLANS [Abstract]

EQUITY-BASED COMPENSATION PLANS

(13)       EQUITY-BASED COMPENSATION PLANS

All equity–based awards to employees are recognized in the Consolidated Statements of Comprehensive Income at the fair value of the award on the grant date. During the three months ended March 31, 2012 and 2011, the Company recognized total compensation expense of $3.4 million and $3.7 million, respectively. Of the total compensation expense, $0.5 million and $0.4 million was recognized in Cost of services and $2.9 million and $3.3 million was recognized in Selling, general and administrative.

Stock Options

As of March 31, 2012, there was approximately $1.0 million of total unrecognized compensation cost (including the impact of expected forfeitures) related to unvested option arrangements granted under the Company's equity plans. The Company recognizes compensation expense straight–line over the vesting term of the option grant. The Company recognized compensation expense related to stock options of approximately $130,000 and $14,000for the three months ended March 31, 2012 and 2011, respectively.

Restricted Stock Unit Grants

During the three months ended March 31, 2012 and 2011, the Company granted 438,500 and 489,500restricted stock units (“RSUs”), respectively, to new and existing employees, which vest in equal installments over four or five years. The Company recognized compensation expense related to RSUs of $3.3 million and $3.7 million for the three months ended March 31, 2012 and 2011, respectively. As of March 31, 2012, there was approximately $35.6 million of total unrecognized compensation cost (including the impact of expected forfeitures) related to RSUs granted under the Company's equity plans.

As of March 31, 2012 and 2011, the Company had performance-based RSUs outstanding that vest based on the Company achieving specified revenue and operating income performance targets. The Company determined that it was not probable these performance targets would be met; therefore no expense was recognized for the three months ended March 31, 2012 or 2011.

Cash Based Awards

During the three months ended March 31, 2012,the Company granted 30,000 cash based awards that vest over a period of five years. These awards will be settled in cash equal to the Company's stock price on each vesting date. Since these awards are settled in cash, the Company marks-to-market the associated expense for each award at the end of each reporting period. The Company accounts for these as liability awards and marks to market the fair value of the award until final settlement.

As of the March 31, 2012 Company stock price, there was approximately $0.4 million of total unrecognized compensation cost related to unvested cash based awards. The Company recognized approximately $7,000 of compensation expense related to these cash based awardsfor the three months ended March 31, 2012.