Share-Based Compensation Plans

9 Months Ended

Sep. 30, 2013

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

Share-Based Compensation Plans

4.    Share-Based Compensation Plans

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

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2013		2012		2013		2012
	(In thousands)
Stock options	$	243	$	251	$	498	$	908
Restricted shares	640		360		1,567		1,140
Total share-based compensation expense	$	883	$	611	$	2,065	$	2,048

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

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2013		2012		2013		2012
	(In thousands)
Selling, general and administrative	$	769	$	532	1,800		1,783
Research and development	114		79		265		265
Total share-based compensation expense	$	883	$	611	$	2,065	$	2,048

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 nine months ended September 30, 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	2,045		4.37
Exercised	—		—
Forfeited or expired	(1,973	)	11.73
Outstanding at September 30, 2013	4,965		$	6.51	5.85	$	69
Fully vested at September 30, 2013 and expected to vest thereafter	4,922		$	6.53	5.82	$	69
Exercisable at September 30, 2013	2,820		$	8.12	2.91	$	52

The following assumptions were used to calculate weighted average fair values of the options granted in the three and nine months ended September 30, 2013 and 2012:

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2013			2012			2013			2012
Expected life (in years)	6.1			6.0			6.2			6.0
Risk-free interest rate	2.2		%	1.0		%	1.7		%	1.0		%
Volatility	60		%	65		%	60		%	65		%
Dividend yield	—			—			—			—
Weighted average grant date fair value per option granted	$	2.44		$	2.68		$	2.48		$	2.68

The intrinsic value of options exercised for the three and nine months ended September 30, 2012, was less than $0.1 million and $0.1 million, respectively. For the nine months ended September 30, 2012, cash received under all share-based payment arrangements was $0.2 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, net of a forfeiture estimate, was approximately $4.9 million as of September 30, 2013, which is expected to be recognized over a weighted-average period of 3.6 years beginning October 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 nine months ended September 30, 2013:

	Number of Shares (In thousands)		Weighted Average Grant-Date Fair Value (Per share)
Nonvested at December 31, 2012	816		$	5.61
Awards granted	750		4.50
Awards vested	(141	)	7.13
Awards forfeited	(95	)	4.80
Nonvested at September 30, 2013	1,330		$	4.88

The fair value of shares vested during the nine months ended September 30, 2013, was $0.6 million.

Unrecognized compensation cost, net of a forfeiture estimate, was $5.0 million as of September 30, 2013, which is expected to be recognized over a weighted average period of approximately 3.1 years beginning October 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.