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STOCK BASED COMPENSATION
12 Months Ended
Dec. 31, 2012
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stock Based Compensation
STOCK BASED COMPENSATION
During the year ended December 31, 2012, the Company had two plans (the 2005 Plan and 2007 Plan) under which it could grant stock-based awards to certain employees, directors and consultants of the Company and its subsidiaries. On April 20, 2012, at the Company’s Annual Meeting of Stockholders, the stockholders approved the Company’s 2012 Omnibus Equity Award Plan (the 2012 Plan). The 2012 Plan replaced the 2005 Plan and 2007 Plan. Compensation expense for stock-based awards made to employees, directors and consultants in return for service is recorded in accordance with Compensation-Stock Compensation of the FASB ASC. The expense is measured at the grant-date fair value of the award and recognized as compensation expense on a straight-line basis over the service period, which is the vesting period. The Company estimates forfeitures that it expects will occur and records expense based upon the number of awards expected to vest.
The Company recorded stock based compensation expense of $6.1 million, $4.7 million, and $3.6 million, respectively, during the years ended December 31, 2012, 2011, and 2010, respectively. At December 31, 2012, there was $15.1 million of unrecognized compensation expense related to unvested awards, which is expected to be recognized over a weighted-average period of approximately 1.7 years.
Restricted Stock- Restricted stock is granted to employees, consultants of the Company and its subsidiaries, and to non-employee members of the Company’s Board. These shares are part of the compensation plan for services provided by the employees, consultants, or Board members. The closing price of the Company’s stock on the date of grant was used to determine the fair value of the grants. The expense related to the restricted stock grants is recorded over the vesting period. There was no cash flow impact resulting from the grants.
The restricted stock vests in various increments on the anniversaries on each grant, subject to the recipient’s continued employment or service through each applicable vesting date. Vesting occurs over one year for Board members and over four years for employees and consultants.
A summary of the status of restricted stock awards as of December 31, 2012 and 2011, and the changes during the periods then ended is presented below:
 
 
Year Ended December 31,
 
 
2012
 
2011
 
2010
 
 
Shares
 
Weighted- Average Fair Value at Grant Date
 
Shares
 
Weighted- Average Fair Value at Grant Date
 
Shares
 
Weighted- Average Fair Value at Grant Date
Non-vested at beginning of the year
 
550,250

 
$
12.98

 
140,000

 
$
6.59

 
45,000

 
$
4.15

Granted- Restricted Stock
 
971,800

 
$
8.94

 
480,000

 
$
14.29

 
144,000

 
$
6.58

Forfeited during the year
 
(61,625
)
 
$
10.73

 
(16,750
)
 
$
14.50

 
(4,000
)
 
$
6.08

Vested during the year
 
(155,056
)
 
$
12.89

 
(53,000
)
 
$
7.42

 
(45,000
)
 
$
4.15

Non-vested at end of year
 
1,305,369

 
$
10.09

 
550,250

 
$
12.98

 
140,000

 
$
6.59


Stock Options- The fair value of each option grant is estimated using the Black-Scholes option-pricing model using the weighted-average assumptions in the table below. Because the Company’s stock has not been publicly traded for a period long enough to use to determine volatility, the average implied volatility rate for a similar entity was used. The expected life of options granted is derived from historical exercise behavior. The risk-free rate for periods within the expected life of the option is based on the U.S. Treasury rates in effect at the time of grant. The stock options vest 25% after one year, beginning on the first anniversary date of the grant, and 6.25% each quarter following the first anniversary. There was no cash flow impact resulting from the grants.
 
 
Year Ended December 31,
 
 
2012

2011
 
2010
The weighted average fair value of options granted
 
$
3.68

 
$
6.33

 
$
2.74

Dividend yield
 
%
 
%
 
%
Weighted average risk free interest rate
 
0.80
%
 
2.14
%
 
1.46
%
Weighted average expected volatility
 
49.92
%
 
50.16
%
 
48.74
%
Expected life (in years)
 
4.6

 
4.6

 
4.6


 
A summary of the status of options granted as of December 31, 2012, 2011, and 2010, and the changes during the years then ended is presented below:

 
Year Ended December 31, 2012
 
Options
 
Weighted-Average Exercise Price
 
Aggregate Intrinsic Value
Options outstanding at January 1
8,826,199

 
$
4.19

 
$
38,284,701

Granted
800,500

 
$
8.81

 

Exercised
(772,986
)
 
$
3.20

 
$
4,893,058

Forfeited
(73,313
)
 
$
7.40

 

Options outstanding at December 31
8,780,400

 
$
4.67

 
$
41,236,574

Exercisable at December 31
7,240,729

 
$
3.90

 
$
38,974,435

Options expected to vest at December 31
1,393,863

 
$
8.36

 
 
 
Year Ended December 31, 2011
 
Options
 
Weighted-Average Exercise Price
 
Aggregate Intrinsic Value
Options outstanding at January 1
10,763,097

 
$
3.57

 
$
116,085,316

Granted
296,000

 
$
14.43

 

Exercised
(2,081,332
)
 
$
2.19

 
$
25,011,227

Forfeited
(151,566
)
 
$
7.36

 

Options outstanding at December 31
8,826,199

 
$
4.19

 
$
38,284,701

Exercisable at December 31
6,994,787

 
$
3.51

 
$
33,538,128

 
Year Ended December 31, 2010
 
Options
 
Weighted-Average Exercise Price
 
Aggregate Intrinsic Value
Options outstanding at January 1
11,451,740

 
$
2.82

 
$
43,308,314

Granted
1,702,000

 
$
6.53

 

Exercised
(2,233,789
)
 
$
1.93

 
$
18,216,548

Forfeited
(156,854
)
 
$
4.92

 

Options outstanding at December 31
10,763,097

 
$
3.57

 
$
116,085,316

Exercisable at December 31
7,497,721

 
$
2.71

 
$
87,248,090



The weighted-average remaining contractual term of options exercisable at December 31, 2012 is 3.1 years. The following table summarizes information about options outstanding as of December 31, 2012:
 
 
 
Options Outstanding
 
Options
Exercisable
Exercise Price
 
Number
Outstanding
 
Weighted-
Average
Remaining
Contractual
Life
 
Number
Exercisable
 
 
 
 
(in years)
 
 
$  0.20 - $  0.99
 
1,283,336

 
2.7

 
1,283,336

$  1.00 - $  3.99
 
2,659,681

 
2.8

 
2,567,201

$  4.00 - $  5.99
 
601,635

 
3.8

 
591,509

$  6.00 - $  8.99
 
3,760,710

 
4.0

 
2,583,188

$ 9.00 - $ 14.50
 
475,038

 
5.2

 
215,495

 
 
8,780,400

 
 
 
7,240,729