Stock Option Plans and Restricted Stock Grants

12 Months Ended

Dec. 31, 2011

Stock Option Plans and Restricted Stock Grants [Abstract]

STOCK OPTION PLANS AND RESTRICTED STOCK GRANTS

18. STOCK OPTION PLANS AND RESTRICTED STOCK GRANTS

In May 2008, the shareholders approved the 2008 Equity Incentive Plan which authorizes the issuance of up to 3,949,891 shares of Company common stock for grants of stock options and restricted stock to employees, officers, consultants and directors of the Company and its subsidiaries, and expires in 2018. The plan authorizes the issuance of incentive and non-qualified stock options, as well as, restricted stock awards. The 2008 Equity Incentive Plan replaced the 2000 Stock Option Plan. No further grants will be made under the 2000 Stock Option Plan, but shares may continue to be issued under such plan pursuant to grants previously made. As of December 31, 2011, we have 1,276,807 outstanding options under our 2000 Stock Option Plan.

Stock Options

The Company expensed $1.1 million, $1.4 million, and $1.7 million for the years ended December 31, 2011, 2010 and 2009 respectively.

The estimated fair value of the options granted during 2011 and prior years was calculated using the Black-Scholes options pricing model. There were 31,000, 397,000 and 936,000 options granted during 2011, 2010, and 2009, respectively. The options will vest, in equal installments, over a five-year period. The fair value of each stock option granted in 2011, 2010, and 2009 was estimated on the date of grant using the following weighted-average assumptions:

	For the Year Ended December 31,
	2011			2010			2009
Dividend Yield		3.8	%		4.1	%		4.0	%
Volatility		50.3	%		49.1	%		47.3	%
Risk-free interest rate		1.3	%		1.6	%		2.5	%
Expected life		7.0 years			7.4 years			7.2 years
Fair Value	$	3.07		$	2.76		$	2.88

The expected volatility is solely based on the daily historical stock price volatility over the expected option life. The expected life of options granted is derived from the output of the option valuation model and represents the period of time an optionee will hold an option before exercising it. The risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury five-year constant maturity yield curve in effect at the time of the grant.

Option activity under the Company’s stock option plans as of December 31, 2011 and changes for the years ended December 31, 2011 were as follows:

Options	Number of Stock Options Outstanding (000)			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in Years)		Aggregate Intrinsic Value ($000)
Outstanding at January 1, 2011		2,949		$	10.42
Granted		31		$	8.91
Exercised		(9	)	$	6.66
Forfeited or expired		(106	)	$	10.45
Outstanding at December 31, 2011		2,865		$	10.41		5.40	$	2,284
Vested or expected to vest at December 31, 2011		2,711		$	10.51		5.26	$	2,067
Exercisable at December 31, 2011		1,921		$	11.27		4.16	$	989

The weighted-average grant-date fair value of options granted was $3.07, $2.76 and $2.88 for 2011, 2010, and 2009, respectively. The total intrinsic value of options exercised during the year ended 2011, 2010 and 2009 was $20,000, $1.2 million and $147,000, respectively. The Company estimates its forfeiture rates based on its historical experience. The forfeiture rate for 2011 was 6.0%.

As of December 31, 2011, there was $1.0 million of total unrecognized compensation cost related to nonvested options granted under the Plan. That cost is expected to be recognized over a weighted-average period of approximately 2.17 years. The total fair value of options vested was $1.5 million during 2011, $1.5 million in 2010 and $1.4 million during 2009. Cash received from stock option exercises was $59,000, $1.5 million, and $280,000 in 2011, 2010, and 2009, respectively.

At December 31, 2011, options for the purchase of 2,865,307 shares of Company common stock were outstanding under the above plans, of which options to purchase 1,921,207 shares were exercisable at prices ranging from $6.11 to $15.53.

The Company has a policy of issuing new shares to satisfy share option exercises.

Restricted Stock

Under the 2008 Equity Incentive Plan, we did not grant restricted stock awards in 2011. In 2010, we granted 170,000 restricted stock awards. The restricted stock awards had a weighted average fair value of $8.19. The stock will vest, in equal installments, over a five-year period.

Compensation cost is recognized over the requisite service period, which is five years, and amounted to $1.1 million, $775,000 and $403,000 during the years ended December 31, 2011, 2010 and 2009, respectively. Total unrecognized compensation cost related to restricted shares was $994,000 at December 31, 2011.

A summary of the status of the Company’s non-vested restricted shares as of December 31, 2011 and changes during the year ended December 31, 2011, is presented below:

	2011
Nonvested Restricted Shares	Shares			Weighted Average Fair Value
	(In thousands)
Nonvested at January 1,		427		$	8.61
Granted		—
Vested		(114	)		8.96
Forfeited		(8	)		8.26
Nonvested at December 31,		305		$	8.47

Under the 2008 Equity Incentive Plan, 1,865,524 shares of common stock were available for the granting of future options and restricted stock awards as of December 31, 2011.