Stock-Based Compensation

9 Months Ended

Sep. 30, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Compensation

Stock-Based Compensation

Stock-based compensation consisted of the following:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(In millions)	2014		2013		2014		2013
Stock-based compensation expense	$	1.1	$	1.9	$	4.1	$	5.1

We have stock-based compensation awards consisting of stock options, restricted stock and stock appreciation rights under five plans (collectively, the Stock Plans) which are described in detail in our 2013 Annual Report on Form 10-K. As of September 30, 2014, there were 1,969,692 shares available for grant under the 2011 Incentive Plan. No further shares were available for grant under any other stock incentive plan.

Stock Options

The following table summarizes our stock option activity:

	Stock Options		Weighted Average Exercise Price
Outstanding December 31, 2013	5,371,538		$	13.11
Granted	61,275		3.72
Exercised	(87,569	)	3.97
Canceled	(856,854	)	18.85
Forfeited	(565,246	)	4.14
Outstanding September 30, 2014	3,923,144		$	13.15
Exercisable as of September 30, 2014	3,383,760		$	14.50

The outstanding options are non-qualified and generally have a term of ten years. The following table summarizes our weighted average assumptions used in the valuation of stock options:

	Nine Months Ended September 30,
	2014		2013
Volatility	46.2	%	42.8	%
Risk-free interest rate	1.9	%	1.1	%
Expected life (months)	73		72
Dividend yield	—		—

As of September 30, 2014, there was $0.7 million of total unrecognized compensation expense related to non-vested stock options granted under our Stock Plans. That expense is expected to be recognized over a weighted average period of 1.2 years.

Restricted Stock

The following table summarizes our restricted stock activity:

	Restricted Stock		Weighted Average Grant Date Fair Value Per Share
Nonvested as of December 31, 2013	1,192,321		$	4.87
Granted	1,170,354		3.68
Grant Adjustments	(4,925	)	3.75
Vested	(728,776	)	5.18
Forfeited	(317,895	)	3.94
Nonvested as of September 30, 2014	1,311,079		$	3.85

The cost of the awards is determined using the fair value of the Company’s common stock on the date of the grant and compensation is recognized on a straight-line basis over the requisite vesting period.

As of September 30, 2014, there was $3.3 million of total unrecognized compensation expense related to non-vested restricted stock granted under our Stock Plans. That expense is expected to be recognized over a weighted average period of 1.7 years.

Stock Appreciation Rights

During the nine months ended September 30, 2014, we granted 0.6 million Stock Appreciation Rights (SARs) to certain employees associated with our Nexsan and Mobile Security operations. As of September 30, 2014, we had 3.1 million SARs outstanding for which we have not recorded any related compensation expense based on the applicable accounting rules. We will continue to assess these SARs each quarter to determine if any expense should be recorded.