Stockholders' Equity

12 Months Ended

Dec. 31, 2011

Stockholders' Equity [Abstract]

Stockholders' Equity

NOTE 10—STOCKHOLDERS' EQUITY

In March 2004, the Board of Directors adopted the 2004 Incentive Stock Plan (the "2004 Incentive Stock Plan"). The Company's Compensation and Nominating Committee (or similar committee) may grant stock options, stock grants, stock units, and stock appreciation rights under the 2004 Incentive Stock Plan to certain eligible employees and to outside directors. As of December 31, 2011, there were 1,503,612 shares available for future grants under the 2004 Incentive Stock Plan. The Company's policy is to issue new shares upon exercise of options and the issuance of stock grants.

The determination of the fair value of stock option awards on the date of grant using option-pricing models is affected by the Company's stock price, as well as assumptions regarding a number of other inputs. These variables include the Company's expected stock price volatility over the expected term of the awards, actual and projected employee stock option exercise behaviors, risk-free interest rates and expected dividends. The expected volatility is based on the historical volatility. The Company uses historical data to estimate stock option exercise and forfeiture rates. The expected term represents the period over which the share-based awards are expected to be outstanding. The dividend yield is an estimate of the expected dividend yield on the Company's stock. The risk-free rate is based on U.S. Treasury yields in effect at the time of the grant for the expected term of the stock options. All stock option awards are amortized based on their graded vesting over the requisite service period of the awards.

The Company also issues restricted stock awards to certain key employees. Generally, the restricted stock vests over a one to three year period and compensation expense is recognized over the one to three year period equal to the grant date value of the shares awarded to the employee.

The Company's total stock-based compensation expense was $2,012, $2,047 and $1,473 in 2011, 2010 and 2009, respectively. Included in stock based compensation expense for 2011, is $222 related to the accelerated vesting of stock-based awards to our former Senior Vice President-General Counsel and Secretary (see Note 20 —Severance Agreement). Stock-based compensation expense is included in general and administrative expenses in the consolidated statement of operations with the exception of the accelerated vested awards which are included in Severance Agreement Charges. As of December 31, 2011, the Company had approximately $2,034 of total unrecognized compensation cost related to non-vested share-based compensation arrangements granted under the Company's plans. This cost is expected to be recognized as stock-based compensation expense over a weighted-average period of 1.6 years. This expected cost does not include the impact of any future stock-based compensation awards.

Options

The Company currently uses the Black-Scholes option pricing model to determine the fair value of its stock options. Such stock options vest equally over a three-year period, except for options granted to members of the Board of Directors that vest immediately upon issuance. The stock options expire 10 years after the grant date.

The following table sets forth information about the weighted-average fair value of options granted, and the weighted-average assumptions for such options granted, during 2011 and 2010:

	2011			2010
Weighted average fair value of options on grant date	$	4.87		$	6.84
Expected life (years)		6.0			6.0
Risk-free interest rate		2.3	%		2.5	%
Expected dividend yield		—	%		—	%
Expected volatility		76.2	%		71.1	%

The following table sets forth the summary of option activity for the year ended December 31, 2011:

	Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Life		Aggregate Intrinsic Value
Outstanding at January 1, 2011		704,500		$	13.77
Granted		172,000		$	7.24		9.23	$	10
Exercised		—		$	—
Forfeited		(80,000	)	$	15.43
Outstanding at December 31, 2011		796,500		$	12.20		6.93	$	36
Exercisable on December 31, 2011		422,333		$	15.45		5.17	$	26
Expected to vest at December 31, 2011		355,459		$	8.52		8.41	$	10

The intrinsic value of the options exercised during the year ended December 31, 2010 was $2. No options were exercised in 2011 or 2009. The fair value of options vested during the years ended December 31, 2011, 2010 and 2009 was $26, $35, and $33, respectively.

Restricted Stock

The following table sets forth the summary of activity for restricted stock grants for the year ended December 31, 2011:

	Shares			Weighted Average Grant Date Fair Value
Nonvested at December 31, 2010		131,333		$	10.58
Granted		165,638		$	7.22
Vested		(43,167	)	$	10.47
Forfeited		(5,000	)	$	7.34
Nonvested at December 31, 2011		248,804		$	8.43