Stock-Based Compensation

6 Months Ended

Jun. 30, 2011

Stock-Based Compensation [Abstract]

Stock-Based Compensation

(9) Stock-Based Compensation

For the three and six month periods ended June 30, 2011, the Company recognized total compensation expense of $3.5 million and $7.1 million, respectively, related to stock-based compensation awards, which is included in General and Administrative Expenses in the Consolidated Condensed Statements of Operations.  For the three and six month periods ended June 30, 2010 the Company recognized total compensation expense of $3.6 million and $7.5 million, respectively, related to stock-based compensation awards.

Restricted Stock Awards

Restricted stock awards vest subject to the satisfaction of service requirements or the satisfaction of both service requirements and achievement of certain pre-established pre-tax income performance targets.  Upon vesting, each award is exchanged for one share of the Company's Common Stock.  As of June 30, 2011, the Compensation Committee has approved the grant of an aggregate of 3,952,500 restricted stock awards to eligible participants.

In March 2011, the Compensation Committee established the 2011 pre-tax income performance targets for 269,998 restricted stock units awarded in 2009 and 2010.  The grant date fair value for these shares was determined based on the closing price of the Company's Common Stock on the date the performance criteria was established.

For the three and six month periods ended June 30, 2011, the Company recognized compensation expense of $2.6 million and $5.3 million, respectively, related to restricted stock awards.  As of June 30, 2011 there was $13.4 million of unrecognized compensation cost related to the unvested awards which, absent significant forfeitures in the future, is expected to be recognized over a weighted average period of approximately 2.0 years. A summary of restricted stock awards activity under the plan for the six months ended June 30, 2011 is as follows:

	Number of Shares			Weighted Average Grant Date Fair Value		Aggregate Intrinsic Value
Granted and Unvested - January 1, 2011		1,220,833		$	21.62	$	26,138,035
Vested		(183,333	)		20.64		3,751,992
Granted		269,998			24.36		5,178,562
Forfeited		(30,000	)		26.19		-
Total Granted and Unvested		1,277,498			22.21		24,502,412
Approved for grant		431,669			(a)		8,279,411
Total Awarded and Unvested - June 30, 2011		1,709,167			n.a.		32,781,823

(a) Grant date fair value cannot be determined currently because the related performance targets for future years have not yet been established by the Compensation Committee.

The outstanding unvested awards at June 30, 2011 are scheduled to vest as follows, subject where applicable to the achievement of performance targets.  As described above, certain performance targets are not yet established.

	Number
Vesting Date	of Awards
2011		50,000
2012		294,998
2013		1,152,500
2014		211,669
Total		1,709,167

Approximately 100,000 of the unvested awards will vest based on the satisfaction of service requirements and 1,609,167 will vest based on the satisfaction of both service requirements and the achievement of pre-tax income performance targets.

Stock Options

There were no stock options granted during the six months ended June 30, 2011; however, the Compensation Committee did establish the respective 2011 pre-tax income performance target for 150,000 stock options awarded in 2009.  The exercise price of the options is equal to the closing price of the Company's Common Stock on the date the awards were approved by the Compensation Committee.  The options expire on May 28, 2019.

For the three and six month periods ended June 30, 2011, the Company recognized compensation expense of $0.9 million and $1.8 million, respectively, related to stock option grants.  As of June 30, 2011, there was $5.0 million of unrecognized compensation expense related to the outstanding options which, absent significant forfeitures in the future, is expected to be recognized over a weighted average period of approximately 2.1 years.

A summary of stock option activity under the plan for the six months ended June 30, 2011 is as follows:

				Weighted Average
	Number of Shares			Grant Date Fair Value		Exercise Price
Total Awarded and Outstanding - January 1, 2011		1,040,000		$	11.18	$	20.50
Granted		150,000			13.35		20.33
Forfeited		(30,000	)		14.84		26.19
Total Granted and Outstanding		1,160,000			11.37		20.33
Approved for grant		300,000			(a)		20.33
Total Awarded and Outstanding - June 30, 2011		1,460,000			n.a.		20.33

(a) Grant date fair value cannot be determined currently because the related performance targets for future years have not yet been established by the Compensation Committee.

Approximately 710,000 of the outstanding options will vest based on the satisfaction of service requirements and 750,000 will vest based on the satisfaction of both service requirements and the achievement of pre-tax income performance targets.

The outstanding options had an intrinsic value of $2.0 million and a weighted average remaining contractual life of 7.5 years at June 30, 2011.  There were 300,000 options exercisable at June 30, 2011 at a weighted average exercise price of $20.33 per share.

The fair value of the third tranche of the 2009 awards, amounting to 150,000 options, was determined using the Black-Scholes option pricing model using the following key assumptions:

Risk-free interest rate		2.74	%
Expected life of options		6.5 yearss
Expected volatility of underlying stock		46.94	%
Expected quarterly dividends (per share)	$	0.00