Stock-Based Compensation

6 Months Ended

Jun. 30, 2011

Stock-Based Compensation

Stock-Based Compensation

10. STOCK-BASED COMPENSATION

Effective January 1, 2006, the Company adopted the fair value recognition provisions of FASB ASC Topic 718, Share-Based Payment, (ASC 718). Under the transition method, compensation cost includes (a) compensation cost for all share-based payments granted prior to, but not yet vested as of, January 1, 2006, based on the grant date fair value estimated in accordance with the original provisions of ASC 718; and (b) compensation cost for all share-based payments granted subsequent to January 1, 2006, based on the grant date fair value estimated in accordance with the provisions of ASC 718.

The Company has one stock-based compensation plan, the 2005 Stock Incentive Plan (the "2005 Plan"), which was amended by its shareholders on May 7, 2008. The 2005 Plan is administered by the Compensation Committee of the Company's Board of Directors. Stock-based compensation is granted to officers, directors and certain key employees in accordance with the provisions of the 2005 Plan. The 2005 Plan provides for grants of stock options, stock appreciation rights ("SARs"), restricted stock and performance share awards. As of June 30, 2011, the total aggregate number of shares of the Company's common stock that may be issued under the 2005 Plan is 3,150,000.

The fair value of each SAR is estimated on the date of grant using a Black-Scholes option-pricing formula. For SARs issued in the six months ended June 30, 2011 and 2010, respectively, the assumptions shown in the following table were used:

	Six Months Ended June 30,
	2011			2010
Weighted-average fair value of grants	$	14.57		$	10.08
Dividend yield		0	%		0	%
Average risk-free interest rate		2.0	%		2.7	%
Expected term (years)		5			5
Expected volatility		65	%		67	%

The following table summarizes the Company's stock-based compensation grants for the six months ended June 30, 2011:

	Stock Awards Granted		Weighted-Average Grant Price Per Share
Stock appreciation rights		88,540	$	26.21
Restricted stock		63,405	$	26.21

The following table summarizes the Company's stock-based compensation expense for the three and six months ended June 30, 2011 and 2010 (in millions):

	Three Months Ended June 30,				Six Months Ended June 30,
	2011		2010		2011		2010
Stock appreciation rights	$	0.4	$	0.5	$	0.8	$	0.9
Restricted stock		0.4		0.4		0.8		0.8
Total stock-based compensation	$	0.8	$	0.9	$	1.6	$	1.7

Total unrecognized compensation cost related to unvested awards as of June 30, 2011 totaled $4.6 million. The cost of these unvested awards is being recognized over the requisite vesting period of 36 months from date of grant.