Stock-Based Compensation

9 Months Ended

Sep. 30, 2011

Stock-Based Compensation

Stock-Based Compensation

3. Stock-Based Compensation

Stock Award Plans

The Company made various stock option and award grants under the 1999 Stock Option/Stock Issuance Plan prior to May 2009.  In April 2009, the Company's stockholders approved the 2009 Long-Term Incentive Plan (the "Incentive Plan"), which had been previously approved by the Company's Board of Directors.  The Incentive Plan allows for the granting of various types of stock awards, not to exceed a total of 1.5 million shares, to eligible individuals.  The Compensation Committee of the Board of Directors administers the Incentive Plan and determines the terms of all stock awards made under the Incentive Plan.

Stock-based compensation cost recognized for the three and nine months ended September 30, 2011 was approximately $2.4 million and $6.8 million, respectively, which included $0.3 million and $0.8 million, respectively, of expense for retirement savings plan contributions.   The associated current and future income tax benefits recognized for the three and nine months ended September 30, 2011 were approximately $0.8 million and $2.2 million, respectively.  Stock-based compensation cost recognized for the three and nine months ended September 30, 2010 was approximately $2.4 million and $7.5 million, respectively, which included $0.3 million and $0.7 million, respectively, of expense for retirement savings plan contributions.   The associated current and future income tax benefits recognized for the three and nine months ended September 30, 2010 were approximately $0.8 million and $2.6 million, respectively.  As of September 30, 2011, there was $13.9 million of total unrecognized compensation cost related to non-vested share-based awards. This cost is expected to be recognized over a weighted-average period of three years.

Stock option activity for the nine months ended September 30, 2011 was as follows (in thousands, except exercise price information):

	Shares			Range of Exercise Prices		Weighted-Average Exercise Price
Options outstanding at January 1, 2011		1,199		$	0.03 – 9.19	$	4.56
Options exercised		(749	)		0.03 – 9.19		4.70
Options canceled		(36	)		3.75 – 7.48		5.93
Options outstanding at September 30, 2011		414			0.03 – 9.19		4.19
Options vested at September 30, 2011		386		$	0.03 – 9.19	$	4.03

                Restricted stock activity for the nine months ended September 30, 2011 was as follows (in thousands, except fair value information):

	Shares			Weighted-Average Grant Date Fair Value
Restricted stock awards outstanding at January 1, 2011		2,606		$	8.97
Awards granted (1)		365			11.65
Awards vested		(421	)		9.33
Awards forfeited		(409	)		8.84
Restricted stock awards outstanding at September 30, 2011		2,141		$	9.43

(1)   Includes the issuance of 97,800 shares of restricted stock to former JCB Partners, LLC ("JCB") employees. The grants vest in 20% increments annually over a 5-year period. If the recipient is not employed by the Company for any reason during the 5-year period, then any unvested shares will be forfeited.