EMPLOYEE BENEFIT PLANS
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Dec. 31, 2012
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Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EMPLOYEE BENEFIT PLANS | NOTE 9 – EMPLOYEE BENEFIT PLANS
401(k) and Profit-Sharing Plan We have a 401(k) and Profit-Sharing Plan (the “Plan”) for our employees. Employees may elect to make a basic contribution of up to 15% of their annual earnings. The Plan provides that the Company can make discretionary matching contributions equal to 25% of the first 6% of employee contributions for an aggregate employee contribution of 1.5%, along with a discretionary profit-sharing contribution. We did not contribute matching or profit sharing contributions for the Plan in years 2012, 2011, and 2010.
Stock Option Plans
We maintain various stock option plans. A summary of our stock option plans as of December 31, 2012, 2011, and 2010 and for the years then ended consisted of the following:
The following table summarizes information about nonvested stock options outstanding at December 31, 2012:
We estimate the option’s fair value on the date of grant using the Black-Scholes option-pricing model. Black-Scholes utilizes assumptions related to volatility, the risk-free interest rate, the dividend yield (which is assumed to be zero, as we have not paid any cash dividends) and employee exercise behavior. Expected volatilities utilized in the Black-Scholes model are based on the historical volatility of our common stock price. The risk-free interest rate is derived from the U.S. Treasury yield curve in effect at the time of grant. The expected life of the grants is derived from historical exercise activity. Historically, our stock options have been held until their expiration date. The assumptions used in the Black-Scholes model to determine fair value for the 2012, 2011 and 2010 stock option grants were:
As of December 31, 2012, 2011 and 2010 the aggregate intrinsic value of the option awards which were vested was $0.1 million, $0.3 million, and $2.4 million, respectively. In addition, the aggregate intrinsic value of option awards exercised during the year ended December 31, 2012 and 2011 was $0.1 million and $2.7 million, respectively. There were no options exercised in 2010. The total remaining unrecognized compensation cost related to the unvested option awards at December 31, 2012 was $1.5 million and is expected to be recognized in varying amounts over the twent-three months remaining in the requisite service period.
During 2012, options to purchase 24 thousand shares of common stock were exercised utilizing various cashless exercise features of our stock option plan and after withholding shares for $31 thousand in exercise costs and $15 thousand in statutory minimum payroll taxes, we issued 9 thousand shares of common stock. During 2011 options to purchase 0.9 million shares of common stock were exercised utilizing various cashless exercise features of our stock option plan and after withholding shares for $1.3 million in exercise costs and $0.9 million in statutory minimum payroll taxes, we issued 0.4 million shares of common stock.
Restricted Stock Unit Award Plan We have a Restricted Stock Unit Award Plan (“2005 RSU Plan”) for our employees and non-employee directors. Vesting of an RSU entitles the holder to receive a share of common stock of the Company on a distribution date. A summary of the RSU Plan as of December 31, 2012, 2011, and 2010, and for the years then ended consisted of the following:
The share-based compensation cost to be incurred on a granted RSU is the RSU’s fair value, which is the market price of the Company’s common stock on the date of grant, less its exercise cost. The compensation cost is amortized to expense over the vesting period of the RSU award. During 2011 all of the remaining unvested RSU awards became vested. The weighted average fair value of a RSU outstanding at December 31, 2012 is $3.75.
The 2005 RSU Plan provides that upon a change in control of the Company or upon termination of an employee’s employment with the Company without cause, vesting will accelerate and the RSUs will fully vest. Absent a change of control, one-fourth of vested shares of common stock underlying an RSU award will be distributed (after payment of $0.01 par value per share) on January 1 of each of 2011, 2012, 2013 and 2014. If a change in control occurs, the vested shares underlying the RSU award will be distributed at or about the time of the change in control. Each distribution date consisting of 0.83 million shares and occurred as follows:
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