Significant Accounting Policies

9 Months Ended

Sep. 30, 2011

Significant Accounting Policies [Abstract]

Significant Accounting Policies

2. Significant Accounting Policies

Equity Compensation

The Company has issued stock-based compensation to certain of its employees and a non-employee consultant. In accordance with the fair-value recognition provisions of Accounting Standards Codification ("ASC") Topic 718, Share-Based Payments ("ASC Topic 718") and SEC Staff Accounting Bulletin No. 107, compensation cost recognized in the periods ended September 30, 2011 and 2010 was based on the grant date fair value estimated in accordance with the provisions of ASC Topic 718. Time-based employee stock option, restricted stock, and restricted stock unit awards are amortized as non-cash equity compensation expense on a straight-line basis over the expected vesting period. The Company values time-based option awards using the Black-Scholes option pricing model. The Black-Scholes option pricing model requires numerous assumptions, including expected volatility of the Company's stock price and expected life of the option. Time-based restricted stock and restricted stock unit awards are valued at the market value of traded shares on the date of grant. Price-based options and price-based restricted stock unit awards are valued using the Monte Carlo Simulation method which takes into account assumptions such as volatility of the Company's Class A Common Stock, the risk-free interest rate based on the contractual term of the award, the expected dividend yield, the vesting schedule, and the probability that the market conditions of the award will be achieved. The Company applies variable accounting to its non-employee price-based restricted stock unit awards.

The Company's other significant accounting policies are discussed in detail in the 2010 Form 10-K.