STOCK-BASED COMPENSATION

6 Months Ended

Jun. 30, 2011

STOCK-BASED COMPENSATION

NOTE 10. STOCK-BASED COMPENSATION

During the six months ended June 30, 2011, we awarded certain employees 707,393 restricted stock awards. The restricted stock awards will be expensed over the requisite service period, subject to an assumed 12% average forfeiture rate. The terms of the restricted stock awards include vesting provisions based solely on continued service. If the service criteria are satisfied, the restricted stock awards vest during March of 2012, 2013 and 2014.

On May 5, 2011, in accordance with our existing program for annual director compensation, we awarded 36,000 shares of restricted stock under the Directors Plan. We determined that the service vesting condition of these restricted stock awards to be non-substantive and, in accordance with accounting principles for stock compensation, recorded the entire fair value of the award as compensation expense on the grant date.

During the six months ended June 30, 2011, we awarded certain employees 36,210 restricted stock units in connection with specified projects. Vesting for these restricted stock units will occur at the earlier to three years or upon satisfactory completion of such projects.

Compensation expense related to our stock-based awards totaled $4.4 million and $9.0 million during the three and six months ended June 30, 2011, respectively and $5.9 million and $9.4 million during the three and six months ended June 30, 2010, respectively.

As of June 30, 2011, we had approximately $15.2 million, $4.8 million and $0.6 million of unrecognized compensation expense related to our unvested restricted stock, unvested restricted stock units, and unvested stock options, respectively. We expect this compensation expense to be recognized over a weighted average period of approximately 1.4 years for our unvested restricted stock awards, approximately 2 years for our unvested RSUs and approximately 1 year for our unvested stock options.