Share-Based Compensation Plans

9 Months Ended

Sep. 30, 2014

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

Share-Based Compensation Plans

5.    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,
	2014		2013		2014		2013
	(In thousands)
Stock options	$	439	$	243	$	1,216	$	498
Restricted shares	480		640		1,550		1,567
Total share-based compensation expense	$	919	$	883	$	2,766	$	2,065

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,
	2014		2013		2014		2013
	(In thousands)
Selling, general and administrative	$	812	$	769	$	2,425	$	1,800
Research and development	107		114		341		265
Total share-based compensation expense	$	919	$	883	$	2,766	$	2,065

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, 2014:

	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, 2013	4,873		$	6.52
Granted	330		8.15
Exercised	(927	)	6.29
Forfeited or expired	(340	)	12.30
Outstanding at September 30, 2014	3,936		$	6.22	6.67	$	10,358
Fully vested at September 30, 2014 and expected to vest thereafter	3,909		$	6.22	6.65	$	10,267
Exercisable at September 30, 2014	2,101		$	7.21	4.69	$	3,998

The following assumptions were used to calculate the weighted average fair values of the options granted:

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2014			2013			2014			2013
Expected life (in years)	6.1			6.1			6.1			6.2
Risk-free interest rate	2.0		%	2.2		%	2.0		%	1.7		%
Volatility	56		%	60		%	57		%	60		%
Dividend yield	—			—			—			—
Weighted average grant date fair value per option granted	$	5.43		$	2.44		$	4.46		$	2.48

Total unrecognized compensation expense from stock options, net of a forfeiture estimate, was $4.8 million as of September 30, 2014, which is expected to be recognized over a weighted-average period of approximately 2.8 years beginning October 1, 2014.

Restricted Shares

The following table summarizes our restricted share activity for the nine months ended September 30, 2014:

	Number of Shares (In thousands)		Weighted Average Grant-Date Fair Value (Per share)
Nonvested at December 31, 2013	1,172		$	4.83
Awards granted	—		—
Awards vested	(390	)	5.15
Awards forfeited	(32	)	4.67
Nonvested at September 30, 2014	750		$	4.67

Total unrecognized compensation cost, net of a forfeiture estimate, was $3.0 million as of September 30, 2014, which is expected to be recognized over a weighted average period of approximately 2.3 years beginning October 1, 2014.