Stock Compensation

9 Months Ended

Sep. 30, 2011

Stock Compensation [Abstract]

Stock Compensation

14.  Stock Compensation

Overview

        The Company has stock option and stock incentive plans for employees and non-employee Directors that provide for grants of restricted stock awards ("RSA"s), restricted stock units ("RSU"s), and options to purchase shares of Company common stock at exercise prices generally equal to the fair values of such stock at the dates of grant.  The Company also maintains a shareholder approved Employee Stock Purchase Plan (the "ESPP") for the benefit of its employees.The ESPP allows eligible employees the right to purchase common stock on a regular basis at the lower of 85% of the market price at the beginning or end of each offering period.

Equity Grants

        The Compensation Committee of the Company's Board of Directors authorized awards of RSAs from approved stock incentive plans to non-employee Directors and certain Company officers totaling 360,000 and 215,000 shares during the nine months ended September 30, 2011 and 2010, respectively, which had an aggregate market value of $1.9 million and $1.3 million, respectively.

        The Compensation Committee of the Company's Board of Directors authorized grants of stock options from approved stock incentive plans to certain Company officers and employees totaling 599,000 and 427,000 shares during the nine months ended September 30, 2011 and 2010, respectively, with exercise prices equal to the stock prices on the respective grant dates. 

        Employees purchased common stock totaling 64,000 and 43,000 shares in the nine months ended September 30, 2011 and 2010, respectively, through the Company's ESPP.

Stock Compensation Expense

        The Company values its RSAs and RSUs based on the stock price on the date of grant and expenses the related compensation cost using the straight-line method over the vesting period.  The Company uses a Black-Scholes model to value its stock option grants and expenses the related compensation cost using the straight-line method over the vesting period.  The fair value of the Company's ESPP options is also determined using a Black-Scholes model and is expensed over the vesting period.  The fair value of stock options and ESPP options is determined on the grant date using assumptions for the expected term, expected volatility, dividend yield, and the risk-free interest rate.  The period expense is then determined based on this valuation and, at that time, an estimated forfeiture rate is used to reduce the expense recorded.  The Company's estimate of pre-vesting forfeitures is primarily based on the recent historical experience of the Company and is adjusted to reflect actual forfeitures at each vesting date. 

The following weighted‑average assumptions were used to determine the fair value of options:

	Three Months Ended		Nine Months Ended
	September 30, 2011		September 30, 2011
	Stock Options	ESPP Options	Stock Options	ESPP Options
Expected life of options	N/A	.50 Years	4.00 Years	.50 Years
Expected stock price volatility	N/A	.355	.65	.406
Risk-free interest rate	N/A	0.10%	1.25%	0.16%

	Three Months Ended		Nine Months Ended
	September 30, 2010		September 30, 2010
	Stock Options	ESPP Options	Stock Options	ESPP Options
Expected life of options	N/A	.50 Years	3.75 Years	.34 Years
Expected stock price volatility	N/A	.467	.650	.472
Risk-free interest rate	N/A	0.22%	1.29%	0.16%

The following table summarizes stock compensation expenses (in thousands):

	Three Months Ended					Nine Months Ended
	September 30, 2010					September 30, 2010
	2011		2010		2011		2010
RSA and RSU expense	$	369	$	139	$	1,038	$	691
Stock option and ESPP option expense		388		424		1270		1,464
Total stock compensation expense	$	757	$	563	$	2308	$	2155

Included in the total stock compensation expense, as applicable in each period, were expenses related to RSAs, RSUs, and stock options issued in each respective year as well as those issued in prior periods that continue to vest during the period, and compensation related to the Company's ESPP. These amounts were recorded as stock compensation expense and were subject to the Company's normal allocation of expenses to deferred preservation costs and inventory costs. The Company capitalized $61,000 and $80,000 in the three months ended September 30, 2011 and 2010, respectively, and $168,000 and $217,000 in the nine months ended September 30, 2011 and 2010, respectively, of the stock compensation expense into its deferred preservation costs and inventory costs.

        As of September 30, 2011 the Company had a total of $2.1 million, $2.0 million, and $259,000 in unrecognized compensation costs related to unvested stock options, RSAs, and RSUs, respectively, before considering the effect of expected forfeitures.  As of September 30, 2011 this expense is expected to be recognized over a weighted-average period of 1.8 years for stock options, 1.7 years for RSAs, and 2.1 years for RSUs.