Stock-Based Compensation

9 Months Ended

Sep. 30, 2011

Stock-Based Compensation [Abstract]

STOCK-BASED COMPENSATION

NOTE 9 — STOCK-BASED COMPENSATION

The Company has three stock-based compensation plans (the Plans), as described below, under which awards have been or may be issued. Total compensation cost that was charged against income for those Plans totaled $8 and $34, respectively, for the three and nine months ended September 30, 2011. Total compensation cost that was charged (credited) to income for those Plans was $6 and ($6), respectively, for the three and nine months ended September 30, 2010. Compensation cost resulted in a credit to income for the nine months ended September 30, 2010 due to forfeitures of previous stock option grants and restricted stock awards in excess of the cost of those earned during the periods. The total income tax (expense) benefit was $1 and $7, respectively, for the three and nine months ended September 30, 2011, and $1 and ($1), respectively, for the three and nine months ended September 30, 2010.

The Plans, which are stockholder-approved, provide for stock option grants and restricted stock awards to directors, officers and employees. The 1999 Stock-Based Incentive Plan, which expired July 13, 2009, provided 193,887 shares for stock option grants and 77,554 shares for restricted stock awards. The 2003 Equity Compensation Plan (2003 Plan), as amended and restated, provided an aggregate of 500,000 shares for stock option grants and restricted stock awards, of which up to 150,000 shares could be awarded in the form of restricted stock awards. The 2009 Equity Compensation Plan, which was approved by stockholders on May 21, 2009, replaced the 2003 Plan and provides 1,000,000 shares, plus any remaining shares available to grant or that are later forfeited or expire under the 2003 Plan, that may be issued as stock option grants, stock appreciation rights or restricted stock awards.

Stock Options

The Plans permit the grant of stock options to directors, officers and employees for up to 1,693,887 shares of common stock, net of restricted stock awards. Option awards are granted with an exercise price equal to the market price of the Company’s common stock on the date of grant, generally have vesting periods ranging from one to three years and are exercisable for ten years from the date of grant. Unvested stock options immediately vest upon a change in control.

The fair value of each option award is estimated on the date of grant using a closed form option valuation (Black-Scholes) model that uses the assumptions noted in the table below. Expected volatilities are based on historical volatilities of the Company’s common stock. The Company uses historical data to estimate option exercise and post-vesting termination behavior. Management and other employee stock options are tracked separately. The expected term of options granted is based on historical data and represents the period of time that options granted are expected to be outstanding, which takes into account that the options are not transferable. The risk-free interest rate for the expected term of the option is based on the U.S. Department of the Treasury (Treasury) yield curve in effect at the time of the grant.

The fair value of the options granted during the three and nine months ended September 30, 2011 and 2010 was determined using the following weighted-average assumptions as of the grant dates.

	Three months ended September 30,					Nine months ended September 30,
	2011		2010			2011			2010
Risk-free interest rate		n/a		2.38	%		2.98	%		2.38	%
Expected term (years)		n/a		7			7			7
Expected stock price volatility		n/a		47	%		46	%		47	%
Dividend yield		n/a		3.45	%		1.41	%		3.45	%

A summary of stock option activity in the Plans for the nine months ended September 30, 2011 follows:

						Weighted Average
						Remaining
				Weighted Average		Contractual Term
	Shares			Exercise Price		(Years)		Intrinsic Value
Outstanding at beginning of year		269,776		$	6.04
Granted		6,300			1.70
Exercised		—			—
Expired		—			—
Cancelled or Forfeited		(52,796	)		10.58
Outstanding at end of year		223,280		$	4.84		6.7	$	—
Expected to vest		89,350		$	0.97		9.1	$	—
Exercisable at end of period		133,930		$	7.43		5.1	$	—

During the nine months ended September 30, 2011, there were 52,796 stock options canceled or forfeited. Previously recognized expense associated with nonvested forfeited shares is reversed.

Information related to the Plans during the three and nine months ended September 30, 2011 and 2010 follows.

	Three months ended September 30,				Nine months ended September 30,
	2011		2010		2011		2010
Weighted average fair value of options granted		n/a	$	0.51	$	0.75	$	0.51

As of September 30, 2011, there was $13 of total unrecognized compensation cost related to nonvested stock options granted under the Plans. The cost is expected to be recognized over a weighted-average period of 1.5 years. Substantially all of the 89,350 nonvested stock options at September 30, 2011 are expected to vest.

Restricted Stock Awards

The Plans permit the grant of restricted stock awards to directors, officers and employees. Compensation is recognized over the vesting period of the shares based on the fair value of the stock at grant date. The fair value of the stock was determined using the closing share price on the date of grant and shares have vesting periods ranging from one to three years. There were 1,151,158 shares available to be issued, net of option awards under the Plans at September 30, 2011. There were no shares issued during the nine months ended September 30, 2011.

A summary of changes in the Company’s nonvested restricted shares for the nine months ended September 30, 2011 follows:

				Weighted Average
				Grant-Date Fair
Nonvested Shares	Shares			Value
Nonvested at January 1, 2011		38,418		$	1.54
Granted		—			—
Vested		(14,418	)		1.82
Forfeited		—			—
Nonvested at September 30, 2011		24,000		$	1.38

As of September 30, 2011, there was $16 of total unrecognized compensation cost related to nonvested shares granted under the Plans. The cost is expected to be recognized over a weighted-average period of 1.4 years. The total fair value of shares vested during the three and nine months ended September 30, 2011 was $2 and $14, respectively. The total fair value of shares vested during the nine months ended September 30, 2010 was $24. There were no shares vested during the three months ended September 30, 2010.