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Incentive Plan
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Sep. 30, 2014
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| Incentive Plan [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Incentive Plan | 8. Incentive Plan During the three months ended September 30, 2014 and 2013, compensation expense related to share-based arrangements was approximately $3.8 million and $2.8 million, respectively. For compensation expense recognized during the three months ended September 30, 2014 and 2013, Basic recognized a tax benefit of approximately $1.5 million and $1.2 million, respectively. During the nine months ended September 30, 2014 and 2013, compensation expense related to share-based arrangements was approximately $10.9 million and $9.0 million, respectively. For compensation expense recognized during the nine months ended September 30, 2014 and 2013, Basic recognized a tax benefit of approximately $4.7 million and $3.1 million, respectively. As of September 30, 2014, there was approximately $28.8 million of total unrecognized compensation related to non-vested share-based compensation arrangements granted under the Plan. That cost is expected to be recognized over a weighted-average period of 2.3 years. The total fair value of share-based awards vested during the nine months ended September 30, 2014 and 2013 was approximately $20.5 million and $11.7 million, respectively. During the three months ended September 30, 2014 and 2013 there was no excess tax benefit due to the net operating loss carryforwards (“NOL”). If there was no NOL, the excess tax benefit would have been approximately $4.0 million and $814,000 at September 30, 2014 and 2013, respectively. Stock Option Awards The fair value of each option award is estimated on the date of grant using the Black-Scholes-Merton option-pricing model. Options granted under the Plan expire 10 years from the date they are granted, and generally vest over a three- to five-year service period. The following table reflects the summary of stock options outstanding at September 30, 2014 and the changes during the nine months then ended:
The total intrinsic value of share options exercised during the nine months ended September 30, 2014 and 2013 was approximately $2.2 million and $501,000, respectively. Cash received from share option exercises under the Plan was approximately $4.3 million and $302,000 for the nine months ended September 30, 2014 and 2013, respectively. During the nine months ended September 30, 2014 and 2013 there was no excess tax benefit due to the NOL. If there was no NOL, the excess tax expense would have been $57,000 for the nine months ended September 30, 2014 and excess tax benefit would have been $53,000 for the nine months ended September 30, 2013. Basic has a history of issuing treasury and newly issued shares to satisfy share option exercises. Restricted Stock Awards On March 12, 2014, the Compensation Committee of Basic’s Board of Directors approved grants of performance-based stock awards to certain members of management. The performance-based awards are tied to Basic’s achievement of total stockholder return over the performance period from January 1, 2014 through December 31, 2014, as compared to other members of a defined peer group. The number of shares to be issued will range from 0% to 150% of the 286,518 target number of shares depending on the performance noted above. Any shares earned at the end of the performance period will then remain subject to vesting over a three-year period with the first shares vesting March 15, 2016. As of September 30, 2014, Basic estimated that 100% of the target number of performance-based awards will be earned. A summary of the status of Basic’s non-vested share grants at September 30, 2014 and changes during the nine months ended September 30, 2014 is presented in the following table:
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