Stock-Based Compensation

12 Months Ended

Dec. 31, 2012

Stock-Based Compensation

Stock-Based Compensation

(7) Stock-Based Compensation

        The Company has implemented the Amended and Restated 2001 Long-Term Incentive Plan (the "2001 Plan"). The 2001 Plan provides for dollar-denominated cash awards, including performance-based awards providing for the payment of cash bonuses upon the attainment of stated performance goals over a stated performance period that are intended to qualify for the performance-based compensation exception to the deductibility limits set forth in Section 162(m) of the Internal Revenue Code (the "Code"). In addition to stock options, restricted stock and cash awards, the 2001 Plan provides for the grant of stock appreciation rights, deferred stock and other stock-based awards to directors, officers, employees and consultants.

        The number of shares of common stock that may be subject to outstanding awards granted under the 2001 Plan (determined immediately after the grant of any award) may not exceed 650,000 from the inception of the 2001 Plan. In addition, no individual may receive awards in any one calendar year of more than 100,000 shares of common stock. Stock options granted under the 2001 Plan expire ten years from the date of grant and generally become exercisable, or vest, over periods of zero to three years from the grant date. Restricted stock generally vests over periods of one-half to five years. Upon the exercise of stock options, the Company issues common stock from its non-issued authorized or treasury shares that have been reserved for issuance pursuant to the 2001 Plan. At December 31, 2012, the number of shares of common stock remaining available for future grants of stock options, restricted stock or other forms of stock-based compensation under the 2001 Plan was 113,318.

        The Company recorded $1,082, $848 and $737 for stock-based compensation expense related to stock options and shares of restricted stock for 2012, 2011 and 2010, respectively. The amounts included in cost of revenues were $188, $158 and $156, and in selling, general and administrative expense were $894, $690 and $581, for 2012, 2011 and 2010, respectively.

        A summary of the Company's stock option and restricted stock activity and related information for the year ended December 31, 2012 and certain other information for the years ended December 31, 2012, 2011 and 2010 are as follows:

	Stock Options			Weighted- Average Exercise Price		Aggregate Intrinsic Value			Restricted Stock			Weighted- Average Grant-Date Fair Value
Outstanding (stock options); non-vested (restricted stock) at December 31, 2011		55,500		$	30.92	$	1,582			24,223		$	41.49
Granted		9,900			47.84		—			17,235			53.00
Exercised (stock options); vested (restricted stock)		(10,000	)		7.48		(559	)		(18,898	)		49.92
Forfeited		—			—		—			(182	)		53.29
Outstanding (stock options); non-vested (restricted stock) at December 31, 2012		55,400		$	38.13	$	603			22,378		$	44.59
Exercisable at December 31, 2012		55,400		$	38.13	$	603			n/a			n/a

	2012		2011		2010
Weighted-average fair value of stock options granted during the year	$	9.51	$	13.99	$	12.40
Weighted-average remaining contractual life for stock options in years		6.21		5.64		6.03
Total fair value of stock options vested during the year	$	94	$	133	$	118
Total intrinsic value of stock options exercised during the year	$	559	$	606	$	1,107
Total fair value of restricted stock vested during the year	$	943	$	715	$	649

        There were no non-vested stock options at December 31, 2012, and the weighted-average remaining contractual life of the outstanding and exercisable stock options at such date was 6.21 years. The total compensation cost not yet recognized for restricted stock at December 31, 2012 was approximately $769, which will be recognized over the weighted average of 1.17 years.

        The fair value for the stock options was estimated at the date of grant using a lattice-based option valuation model, with the following weighted average assumptions for the 2012, 2011 and 2010 grants: risk-free interest rates of 0.36% to 0.51% (weighted average 0.40%) in 2012, 0.39% to 1.21% (weighted average 0.56%) in 2011, and 0.99% to 1.81% (weighted average 1.16%) in 2010; a dividend yield of 0%; and a volatility factor of .278 to .288 (weighted average .286) in 2012; .351 to .411 (weighted average .364) in 2011, .420 to .423 (weighted average .422) in 2010, based on the monthly per-share closing prices for three years preceding the date of issuance. In addition, the fair value of these options was estimated based on an expected life of three years. The fair value of restricted stock is based on the closing per-share price of the Company's common stock on the date of grant.