Stock Based Compensation

9 Months Ended

Sep. 30, 2012

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

Stock Based Compensation

Stock Based Compensation

Deferred Stock Awards

Piedmont has granted deferred stock awards in the form of restricted stock to its employees. The awards are determined by the Compensation Committee of the board of directors of Piedmont on an annual basis and typically vest over a three-year period beginning on the grant date. In addition, Piedmont has adopted a multi-year performance share program for certain of its employees. Restricted shares are earned based on the relative performance of Piedmont's total stockholder return as compared with a predetermined peer group's total stockholder return over a three-year period. Typically, shares are not awarded until the end of the third year in the performance period and vest immediately upon award; however, the inaugural performance share program, which covers the fiscal 2010-2012 performance period, contains three interim performance periods whereby shares may be awarded.

A rollforward of Piedmont's deferred stock award activity for the nine months endedSeptember 30, 2012 is as follows:

	Unvested Deferred Stock Awards as of January 1, 2012		Deferred Stock Awards Granted During Nine Months Ended September 30, 2012		Adjustment to Estimated Future Grants of Performance Share Awards During Nine Months Ended September 30, 2012			Deferred Stock Awards Vested During Nine Months Ended September 30, 2012			Deferred Stock Awards Forfeited During Nine Months Ended September 30, 2012			Unvested Deferred Stock Awards as of September 30, 2012
Shares	511,203		209,177		(164,740		)	(250,269		)	(4,546		)	300,825
Weighted-Average Grant Date Fair Value (per share)	$	21.67	$	17.48	$	23.80		$	20.95		$	18.76		$	18.25

A detail of Piedmont’s outstanding employee deferred stock awards as of September 30, 2012 is as follows:

Date of grant	Type of Award	Net Shares Granted (1)		Grant Date Fair Value		Vesting Schedule	Unvested Shares as of September 30, 2012
May 11, 2010	Fiscal Year 2010-2012 Performance Share Program	56,875	(2)	$	28.44	Shares vest immediately upon determination of award in 2013.	—	(3)
May 24, 2010	Annual Deferred Stock Award	161,148		$	18.71	Of the shares granted, 25% vested on the date of grant, and 25% vested or will vest on May 24, 2011, 2012, and 2013, respectively.	53,125
May 24, 2010	One-Time Special Deferred Stock Award in Recognition of Piedmont's Initial Public Offering	40,085		$	18.71	Of the shares granted, 33.33% vested or will vest on May 24, 2011, 2012, and 2013, respectively.	17,457
April 5, 2011	Annual Deferred Stock Award	128,986		$	19.40	Of the shares granted, 25% vested on the date of grant, and 25% vested or will vest on April 5, 2012, 2013, and 2014, respectively.	74,999
April 5, 2011	Fiscal Year 2011-2013 Performance Share Program	—		$	18.27	Shares vest immediately upon determination of award in 2014.	—	(3)
April 4, 2012	Annual Deferred Stock Award	191,738		$	17.49	Of the shares granted, 25% vested on the date of grant, and 25% will vest on April 4, 2013, 2014, and 2015, respectively.	155,244
April 4, 2012	Fiscal Year 2012-2014 Performance Share Program	—		$	17.42	Shares vest immediately upon determination of award in 2015.	—	(3)
Total							300,825

⁽¹⁾  Amounts reflect the total grant, net of shares surrendered upon vesting to satisfy required minimum tax withholding obligations through September 30, 2012.

⁽²⁾  Represents net shares granted at the end of the first and second interim performance periods ended December 31, 2010 and 2011, respectively.

⁽³⁾  Estimated based on Piedmont's cumulative total stockholder return for the respective performance period through September 30, 2012. Such estimates are subject to change in future periods based on both Piedmont's and its peers' stock performance and dividends paid.

During the three months endedSeptember 30, 2012 and 2011, respectively, Piedmont recognized approximately $0.9 million and $1.1 million of compensation expense related to stock awards, all of which related to the amortization of nonvested shares. During the nine months endedSeptember 30, 2012 and 2011, Piedmont recognized approximately $3.1 million and $4.8 million of compensation expense related to stock awards, of which $1.8 million and $3.6 million relates to the amortization of nonvested shares, respectively. During the nine months endedSeptember 30, 2012, a total of 178,329 shares were issued to employees, directors, and officers. As of September 30, 2012, approximately $2.5 million of unrecognized compensation cost related to nonvested, share-based compensation remained, which Piedmont will record in its consolidated statements of income over a weighted-average vesting period of approximately one year.