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Stock-Based Compensation (Tables)
9 Months Ended
Sep. 30, 2011
Stock-Based Compensation 
Stock-based compensation expense

 

 

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

 

2011

 

2010

 

2011

 

2010

 

Stock options

 

$

1.7

 

$

1.4

 

$

4.9

 

$

4.2

 

Restricted stock

 

0.3

 

0.3

 

0.9

 

0.8

 

Total stock-based compensation pre-tax

 

2.0

 

1.7

 

5.8

 

5.0

 

Tax benefit

 

0.3

 

0.3

 

0.8

 

0.8

 

Total stock-based compensation net of tax

 

$

1.7

 

$

1.4

 

$

5.0

 

$

4.2

 

 

Assumptions regarding volatility, expected life, dividend yield and risk free interest

 

 

 

 

2011

 

2010

 

Risk-free interest rate

 

1.24%-3.12%

 

1.73% -3.46%

 

Expected life

 

6.5 years

 

6.5 years

 

Volatility

 

57.2%

 

62.0%

 

Expected dividend yield

 

0.0%

 

0.0%

 

 

Schedule of stock option activity

 

 

 

 

Shares
Subject to
Options

 

Weighted
Average
Option Price

 

Weighted
Average
Remaining
Contractual
Term (Yrs)

 

Aggregate
Intrinsic Value
(in millions) (b)

 

Outstanding at December 31, 2010

 

4,718,648

 

$

9.99

 

 

 

 

 

Granted

 

881,244

 

13.92

 

 

 

 

 

Exercised

 

(332,045

)

9.28

 

 

 

$

3.2

 

Forfeited

 

(121,755

)

10.26

 

 

 

 

 

Outstanding at September 30, 2011

 

5,146,092

 

$

10.71

 

6.5

 

$

16.3

 

 

 

 

 

 

 

 

 

 

 

Exercisable at September 30, 2011

 

2,710,968

 

$

8.73

 

4.8

 

$

13.3

 

 

 

 

 

 

 

 

 

 

 

Exercisable and expected to vest at September 30, 2011 (a)

 

5,019,466

 

$

10.65

 

6.4

 

$

16.2

 

 

 

(a)

In addition to the options that are exercisable at September 30, 2011, the Company expects a portion of the unvested options to become exercisable in the future. Options expected to vest in the future are determined by applying an estimated forfeiture rate to the options that are unvested as of September 30, 2011.

(b)

The aggregate intrinsic value is based on the positive difference between the fair value of the Company’s common stock price of $13.53 on September 30, 2011, or the date of exercises, as appropriate, and the exercise price of the underlying stock options.

Schedule of restricted stock activity

 

 

 

 

Shares
Subject to
Restriction

 

Weighted
Average Grant
Date Fair
Value

 

Outstanding at December 31, 2010

 

247,258

 

$

8.02

 

Granted

 

156,822

 

21.28

 

Vested

 

(158,358

)

6.56

 

Forfeited

 

(300

)

7.55

 

Outstanding at September 30, 2011

 

245,422

 

$

17.44