Stock-Based Compensation

3 Months Ended

Mar. 31, 2013

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

Stock-Based Compensation

Stock-Based Compensation

The Company maintains several stock-based compensation plans, which are more fully described in the Company's Annual Report on Form 10-K for the year ended December 31, 2012. The Company included total stock-based compensation expense related to all its stock awards in various operating expense categories for the three months endedMarch 31, 2013 and 2012, as follows:

	Three months ended March 31,
	2013		2012
	(In Thousands)
Product and content development	$	556	$	834
Sales and marketing	341		880
General and administrative	407		860
Total stock-based compensation	$	1,304	$	2,574

Options

The following table represents a summary of the Company’s stock option activity under the 2009 Stock Incentive Plan and the 2000 Non-Officer Stock Incentive Plan and related information, without regard for estimated forfeitures, for the three months ended March 31, 2013:

	Shares		Weighted Average Exercise Price
	(In Thousands)
Options outstanding at December 31, 2012	201		$	3.60
Options granted	—		—
Options exercised	(9	)	3.14
Options forfeited	—		—
Options outstanding at March 31, 2013	192		$	3.62

The intrinsic value of options exercised during the three months ended March 31, 2013 was $87,000. There were no options exercised during the three months ended March 31, 2012.

The following table summarizes information about options outstanding at March 31, 2013:

Range of Exercise Price	Number Outstanding and Exercisable as of March 31, 2013	Weighted Average Remaining Contractual Life (in Years)	Weighted Average Exercise Price
	(In Thousands)
$1.37 to $4.10	192	0.92	$	3.62

The aggregate intrinsic value of stock options outstanding at March 31, 2013 was $1.2 million, all of which relates to vested awards. The intrinsic value for stock options is calculated based on the exercise price of the underlying awards and the quoted closing price of the Company’s common stock as of March 31, 2013.

Restricted Stock

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

	Restricted Stock		Weighted Average Grant Date Fair Value (per share)
	(In Thousands)
Unvested as of December 31, 2012	1,539		$	9.38
Granted	1,180		9.25
Vested	(424	)	8.98
Forfeited	(114	)	9.51
Unvested as of March 31, 2013	2,181		$	9.38

For the three months endedMarch 31, 2013 and 2012, the weighted average grant date fair value for restricted stock was $9.25 and $9.02, respectively. The fair value of restricted stock that vested during these periods was $3.8 million and $4.2 million, respectively. During the three months endedMarch 31, 2013 and 2012, 174,338 and 172,097 shares of restricted stock, respectively, were surrendered by employees to satisfy the employees' tax withholding obligations related to the vesting of the stock awards. The aggregate intrinsic value of unvested restricted shares as of March 31, 2013 was $18.4 million. The intrinsic value for restricted shares is calculated based on the par value of the underlying shares and the quoted price of the Company’s common stock as of March 31, 2013.

As of March 31, 2013, there was $14.1 million of total unrecognized compensation cost related to non-vested restricted shares, net of estimated forfeitures, which is expected to be recognized over a weighted average period of 2.96 years. During the three months endedMarch 31, 2013 and 2012, the Company recorded $1.3 million and $2.6 million, respectively, of compensation expense related to restricted shares.

2009 Employee Stock Purchase Plan ("ESPP")

During the three months endedMarch 31, 2013, 20,170 shares were issued under the ESPP, at a purchase price of $7.11 per share. During the three months ended March 31, 2012, 19,823 shares were issued under the ESPP, at a purchase price of $7.00 per share.

The fair value of ESPP rights have been estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions:

	Three Months Ended March 31,
	2013	2012
	ESPP Rights	ESPP Rights
Expected term	6 months	6 months
Risk-free rate	0.11%	0.15%
Expected volatility	19.9%	29.4%
Dividend yield	—%	—%

Expected volatility is based on the historical volatility of the market price of the Company’s stock. The expected lives of options granted are based on analysis of historical employee termination rates and option exercises. The risk-free interest rates are based on the expected option lives and the corresponding U.S. treasury yields in effect at the time of grant. The fair value for ESPP rights includes the option exercise price discount from market value provided for under the ESPP.

During the three months endedMarch 31, 2013 and 2012, the Company recorded $18,000 and $13,000, respectively, of compensation expense related to options and ESPP rights. The weighted average grant-date fair value of ESPP rights arising from elections made by ESPP participants was $1.98 and $1.93 during the three months endedMarch 31, 2013 and 2012, respectively. The fair value of ESPP rights that vested during the three months endedMarch 31, 2013 and 2012 was $29,000 and $46,000, respectively.

The intrinsic value of shares purchased through the 2009 ESPP during the three months endedMarch 31, 2013 was $29,000. The intrinsic value of outstanding 2009 ESPP rights as of March 31, 2013 was $30,000. The intrinsic value of the shares of 2009 ESPP rights is calculated as the discount from the quoted price of the Company’s common stock, as defined in the 2009 ESPP, which was available to employees as of the respective dates.

As of March 31, 2013, there was approximately $26,000 of unrecognized compensation cost related to 2009 ESPP rights, which is expected to be recognized over a period of four months.

The Company received cash from the exercise of options and ESPP rights of $171,000 and $144,000 for the three months endedMarch 31, 2013 and 2012, respectively, for which the Company issued new shares of common stock.