Share-Based Compensation Expense

3 Months Ended

Mar. 31, 2012

Share-Based Compensation Expense [Abstract]

Share-Based Compensation Expense

5. SHARE-BASED COMPENSATION EXPENSE

The following table summarizes the Company's stock option activity during the three months ended March 31, 2012:

	Number of Shares			Weighted- Average Exercise Price Per Share		Weighted- Average Remaining Contractual Life (years)		Aggregate Intrinsic Value
Outstanding, January 1, 2012		336,307		$	14.43
Granted		124,805			11.23
Exercised		(4,668	)		1.91
Forfeited		0			0
Outstanding, March 31, 2012		456,444		$	13.68		6.41	$	35
Exercisable, March 31, 2012		10,967		$	21.39		2.82	$	35
Expected to vest at March 31, 2012		446,673		$	13.71		6.55	$	35

The Company recorded compensation expense of $89 in the accompanying consolidated statements of operations for the three months ended March 31, 2012 for stock option awards. No expense was recorded during the three months ended March 31, 2011 as all outstanding awards were fully vested. The total intrinsic value of stock options exercised during the three months ended March 31, 2012 and 2011 was $43 and $144, respectively.

The Company has issued restricted stock to employees generally with vesting terms ranging from three to five years. The fair value is equal to the market price of the Company's common stock on the date of grant. Expense for restricted stock is amortized ratably over the vesting period. The following table summarizes the restricted stock activity for the three months ended March 31, 2012:

	Number of Shares			Weighted- Average Grant-Date Fair Value		Aggregate Intrinsic Value
Nonvested, January 1, 2012		862,858		$	16.43
Granted		243,919			11.64
Vested		(117,089	)		11.34
Forfeited		0			0
Nonvested, March 31, 2012		989,688		$	15.85	$	11,114

Additionally, the Company grants restricted stock units. Prior to 2012, the restricted stock units were performance-based units. The performance-based units have performance conditions and service-based vesting conditions. Each vesting tranche is treated as an individual award and the compensation expense is recognized on a straight-line basis over the requisite service period for each tranche. The requisite service period is a combination of the performance period and the subsequent vesting period based on continued service. The level of achievement of such goals may cause the actual amount of units that ultimately vest to range from 0% to 200% of the original units granted which is reflected as performance factor adjustment in the table below. The Company recognizes expense for performance-based restricted stock units when it is probable that the performance criteria specified will be achieved. The fair value is equal to the market price of the Company's common stock on the date of grant. Expense is amortized ratably over the vesting period. In 2012, grants of restricted stock units contained market-based conditions. Market-based awards entitle employees to vest in a number of units determined by the Company's stock price return as compared to a set of comparator companies over a period and will range from 0% to 200% of the original units granted. The fair value is calculated using a Monte Carlo simulation model on the date of grant. Compensation expense is recognized over the requisite service periods using the straight-line method regardless of the outcome of the market conditions, so long as the award holder remains an employee through the requisite service period.

The fair value of the market-based restricted stock units utilized the following inputs and assumptions:

	1 Year			2 Years			3 Years
Closing stock price on grant date	$	11.23		$	11.23		$	11.23
Performance period starting price	$	12.78		$	12.78		$	12.78
Term of award ( in years)		1			2			3
Volatility		45.91	%		50.99	%		51.66	%
Risk-free interest rate		0.17	%		0.30	%		0.47	%
Expected dividend yield		6.05	%		6.05	%		6.05	%
Fair valve	$	6.68		$	10.70		$	12.34

The performance period starting price is measured as the average closing price over the last 20 trading days prior to the performance period start.

The following table summarizes the restricted stock unit activity for the three months ended March 31, 2012:

	Number of Restricted Stock Units		Weighted- Average Grant-Date Fair Value		Aggregate Intrinsic Value
Nonvested, January 1, 2012		36,316	$	17.53
Granted		105,786		9.36
Vested		0		0
Forfeited		0		0
Nonvested, March 31, 2012		142,102	$	10.27	$	1,596

The Company recorded compensation of $1,532 and $3,214 in the accompanying consolidated statements of operations for the three months ended March 31, 2012 and 2011, respectively, in connection with the issuance of the restricted stock and restricted stock units. As of March 31, 2012, 949,218 shares of restricted stock and 123,194 restricted stock units were expected to vest.

As of March 31, 2012, there was $14,614 of total unrecognized compensation expense related to unvested share-based compensation arrangements including market-based units, which is expected to be recognized over a weighted-average period of 1.4 years. The total unrecognized compensation expense will be fully expensed through the first quarter of 2016.