Stock-Based Compensation

3 Months Ended

Mar. 31, 2013

Stock-Based Compensation [Abstract]

STOCK-BASED COMPENSATION

8. STOCK-BASED COMPENSATION

The Company has one stock-based compensation plan, the 2005 Stock Incentive Plan (the “2005 Plan”). 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 March 31, 2013, 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 three months ended March 31, 2013 and 2012, respectively, the assumptions shown in the following table were used:

	Three Months Ended March 31,
	2013			2012
Weighted-average fair value of grants	$	23.34		$	14.01
Dividend yield		0	%		0	%
Average risk-free interest rate		0.7	%		0.8	%
Expected term (years)		5			5
Expected volatility		64	%		66	%

The following table summarizes the Company’s stock-based compensation grants for the three months ended March 31, 2013:

	Stock Awards Granted		Weighted-Average Grant  Price Per Share
Stock appreciation rights		60,176	$	43.87
Restricted stock		39,592	$	43.87

The following table summarizes the Company’s stock-based compensation expense for the three months ended March 31, 2013 and 2012 (in thousands):

	Three Months Ended March 31,
	2013		2012
Stock appreciation rights	$	331	$	302
Restricted stock		537		403
Employee stock purchase plan		27		31
Total stock-based compensation	$	895	$	736

Total unrecognized compensation cost related to unvested awards as of March 31, 2013 was $7.6 million. The cost of these unvested awards is being recognized over the requisite vesting period of each award.