Stock-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2012

Summary of restricted stock awards activity under the plan

For the three and nine months ended September 30, 2012, the Company recognized $1.8 million and $5.6 million, respectively, of compensation expense related to restricted stock awards. As of September 30, 2012 there was $6.5 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 2.6 years. A summary of restricted stock awards activity under the Plan for the nine months ended September 30, 2012 is as follows:

	Number of Shares			Weighted Average Grant Date Fair Value		Aggregate Intrinsic Value
Granted and Unvested - January 1, 2012		1,185,832		$	19.65	$	14,633,167
Vested		(208,332	)	$	24.36		2,626,729
Granted		293,333		$	14.39		3,355,730
Forfeited		(120,833	)	$	13.47		-
Total Granted and Unvested		1,150,000		$	18.10		13,156,000
Approved for grant		888,335		(a)			10,162,552
Total Awarded and Unvested – September 30, 2012		2,038,335		n.a.			23,318,552

(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.

Scheduled vesting of outstanding unvested restricted stock unit awards

The outstanding unvested awards at September 30, 2012 are scheduled to vest as follows, subject where applicable to the achievement of performance targets. As described above, certain performance targets have not yet been established.

Vesting Date		Number of Awards

2013		905,000
2014		408,335
2015		150,000
2016		165,000
2017		410,000
Total		2,038,335

Stock option activity under the plan

A summary of stock option activity under the Plan for the nine months ended September 30, 2012 is as follows:

				Weighted Average
	Number of Shares			Grant Date Fair Value		Exercise Price
Total Granted and Outstanding - January 1, 2012		1,225,465		$	10.11	$	18.45
Granted		165,000		$	5.65	$	19.51
Forfeited		(75,000	)	$	7.20	$	-
Total Granted and Outstanding		1,315,465		$	9.72	$	18.91
Approved for grant		830,000		(a)		$	12.80
Total Awarded and Outstanding – September 30, 2012		2,145,465		n.a.		$	16.55

(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.

Key assumptions used in determining fair value of awards

During 2009, the Compensation Committee approved the award of 750,000 stock options that vest in five equal annual tranches from 2010 to 2014 subject to the achievement of pre-tax income performance targets established by the Compensation Committee. In March 2012, the Compensation Committee established the 2012 pre-tax income performance target for the fourth tranche of 150,000 stock options awarded in 2009. During May 2012, the Compensation Committee approved the award of 15,000 stock options that vest subject to service-based requirements only. The fair values of these stock options were determined during the nine months ended September 30, 2012 based on the Black Scholes option pricing model using the following key assumptions:

Number of Shares		150,000		15,000
Risk-free interest rate		0.88%		1.12%
Expected life of options	4.4 years		7.3 years
Expected volatility of underlying stock		53.89%		50.59%
Expected quarterly dividends (per share)		0.00		0.00