STOCK-BASED COMPENSATION

9 Months Ended

Sep. 30, 2011

STOCK-BASED COMPENSATION

NOTE 7 – STOCK–BASED COMPENSATION

Total stock-based compensation expense, net recognized for the three months and nine months ended September 30, 2011 and 2010 is as follows:

	Three Months  Ended September 30				Nine Months Ended September 30
	2011		2010(1)		2011		2010(1)
	(Unaudited) (In thousands)
Stock Options	$	1,015	$	600	$	2,885	$	1,344
Restricted Stock and Restricted Stock Units		2,154		795		10,305		4,426
Performance Shares and Deferred Stock Units		962		4,114		1,465		5,955
Total	$	4,131	$	5,509	$	14,655	$	11,725

⁽¹⁾ Unrealized tax benefits for the three-month and nine-month periods ended September 30, 2010 was $2.4 million and $5.0 million, respectively.

In connection with the spin-off of B&W, we made certain adjustments to our stock-based compensation awards. For holders of performance shares issued in or prior to May 2009, we cancelled the performance shares and issued restricted stock in an amount equal to the fair value of the shares held immediately prior to the spin-off. For holders of restricted stock granted in or prior to May 2010, the holder received additional units of restricted stock to maintain the total fair value of restricted stock held immediately prior to the spin-off. For stock options granted in or prior to May 2010, we adjusted the number of options held by each holder so that the intrinsic value of the stock options held immediately following the spin-off equaled the intrinsic value of the stock options held immediately prior to the spin-off.