Share-Based Compensation Plans

3 Months Ended

Mar. 31, 2013

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

Share-Based Compensation Plans

Share-Based Compensation Plans

The following table presents share-based compensation expense attributable to stock options and restricted shares.

	For the Three Months Ended March 31,
	2013		2012
	(In thousands)
Stock options	$	104	$	390
Restricted shares	430		412
Total share-based compensation expense	$	534	$	802

The following table presents share-based compensation expense as included in the Consolidated Statements of Income:

	For the Three Months Ended March 31,
	2013		2012
	(In thousands)
Selling, general and administrative	$	466	$	699
Research and development	68		103
Total share-based compensation expense	$	534	$	802

There is no corresponding deferred income tax benefit for stock options or restricted shares.

Stock Options

The following table summarizes our stock option activity for the three months ended March 31, 2013:

	Number of Shares (In thousands)		Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value (In thousands)
Outstanding at December 31, 2012	4,893		$	9.52
Granted	20		4.68
Exercised	—		—
Forfeited or expired	(565	)	10.58
Outstanding at March 31, 2013	4,348		$	9.35	2.68	$	22
Fully vested and expected to vest at March 31, 2013	4,346		$	9.36	2.68	$	22
Exercisable at March 31, 2013	4,128		$	9.55	2.37	$	22

The following assumptions were used to calculate weighted average fair values of the options granted in the three months ended March 31, 2013:

Expected life	6 years
Risk-free interest rate	1.1		%
Volatility	61		%
Dividend yield	—
Weighted average grant-date fair value per option granted	$	2.62

The intrinsic value of options exercised for the three months ended March 31, 2012 was less than $0.1 million. For the three months ended March 31, 2012, cash received for option exercises was $0.1 million. The related cash receipts are included in financing activities in the accompanying Condensed Consolidated Statements of Cash Flows. Total unrecognized compensation expense from stock options, including a forfeiture estimate, was approximately $0.4 million as of March 31, 2013, which is expected to be recognized over a weighted-average period of 1.6 years beginning April 1, 2013. To the extent the actual forfeiture rate is different than what we have anticipated, share-based compensation expense related to these options will be different from our expectations.

Restricted Shares

The following table summarizes our restricted share activity for the three months ended March 31, 2013:

	Number of Shares (In thousands)		Weighted Average Grant-Date Fair Value (Per share)
Nonvested at December 31, 2012	816		$	5.61
Awards granted	—		—
Awards vested	(49	)	7.11
Awards forfeited	(13	)	5.74
Nonvested at March 31, 2013	754		$	5.51

The fair value of shares vested during the three months ended March 31, 2013 was $0.2 million.

Unrecognized compensation cost, including a forfeiture estimate, was $3.3 million as of March 31, 2013, which is expected to be recognized over a weighted average period of approximately 2.8 years years beginning April 1, 2013. To the extent that the actual forfeiture rate is different than what we have anticipated, the share-based compensation expense related to these awards will be different from our expectations.