Note 12 - Stock Incentive and Employee Benefit Plans

12 Months Ended

Dec. 31, 2013

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

12. Stock Incentive and Employee Benefit Plans 

a. Stock Incentive Plans

The Company has share-based awards outstanding under four different plans, pursuant to which we have granted stock options, stock appreciation rights, restricted and unrestricted stock, and performance share awards to key officers, employees, and directors. The exercise price of our share-based awards may not be less than the market value of our common stock on the date of grant. Stock options and stock appreciation rights vest based on either time (generally over a one to four year period) or market performance (based on stock price appreciation) and generally expire between five and ten years after the date of grant. The fair value for stock options and stock appreciation rights is established at the date of grant using the Black-Scholes model for awards that vest based on time and a lattice model for awards that vest based on market performance. Restricted stock typically vests over a three year period and are valued at the closing price on the date of grant.

During the years ended December 31, 2013 and 2012, we granted 6.3 million and 3.5 million capped stock appreciation rights, respectively, to our officers and key employees. The capped stock appreciation rights were issued with a grant price equal to the closing price of the Company’s common stock on the issuance date, with the value per share of the award capped at the difference between twelve dollars ($12) and the grant price, and vest in three equal installments on each of the first three anniversaries of the issuance date. Additionally, on April 2, 2012 the Compensation Committee of our Board of Directors provided a one-time grant of 2.7 million market based capped stock appreciation rights to 12 senior executives. These market based awards have a five year term and vest in three equal tranches only if the Company’s common stock closing price reaches eight ($8), nine ($9) and ten ($10) dollars, respectively, for twenty consecutive trading days. During the year ended December 31, 2013, one-third of the market based award vested as the criteria for the $8 tranche was met. The value per share of the award is capped at the difference between twelve dollars ($12) and the grant price.

The following is a summary of stock option and stock appreciation rights activity relating to our four plans on a combined basis for the years ended December 31, 2013, 2012 and 2011:

	2013					2012					2011
	Number of Shares			Weighted Average Exercise Price		Number of Shares			Weighted Average Exercise Price		Number of Shares			Weighted Average Exercise Price
Outstanding, beginning of year		18,616,382		$	4.21		17,877,785		$	4.33		18,630,205		$	4.46
Granted		6,261,602			8.40		6,222,222			4.24		1,350,000			3.82
Exercised		(4,479,325	)		3.55		(4,677,271	)		2.79		(1,050,025	)		1.19
Canceled		(616,793	)		8.79		(806,354	)		16.04		(1,052,395	)		9.15
Outstanding, end of year		19,781,866		$	5.54		18,616,382		$	4.21		17,877,785		$	4.33
Exercisable at end of year		9,736,564		$	4.28		11,956,258		$	4.17		13,137,785		$	4.84
Available for future grant		13,971,091					23,283,953					31,570,998

At December 31, 2013, 18,740,505 stock options and stock appreciation rights were vested or expected to vest in the future with a weighted average exercise price of $5.48 and a weighted average expected life of 3.03 years. During the years ended December 31, 2013, 2012 and 2011, the total fair value of stock options and stock appreciation rights vested was $3.0 million, $5.9 million and $6.3 million, respectively. The total intrinsic value of stock options and stock appreciation rights exercised during the years ended December 31, 2013, 2012 and 2011 was $23.0 million, $17.3 million and $2.1 million, respectively. The intrinsic value of options exercised is the difference between the fair market value of the Company’s common stock on the date of exercise and the exercise price.

The following table summarizes information about stock options and stock appreciation rights outstanding and exercisable at December 31, 2013:

Outstanding										Exercisable
Exercise Prices				Number		Weighted Average Exercise		Weighted Average Remaining Contractual		Number		Weighted Average Exercise
Low		High		of Shares		Price		Life		of Shares		Price
$	0.67	$	3.10		4,889,003	$	1.94		1.89		4,889,003	$	1.94
$	3.80	$	7.93		8,417,963	$	4.23		3.11		4,358,582	$	4.14
$	8.39	$	9.29		5,985,921	$	8.41		4.21		—	$	—
$	20.95	$	29.84		488,979	$	28.93		0.18		488,979	$	28.93

As of December 31, 2013, the total intrinsic value of stock options and stock appreciation rights outstanding was $79.2 million, of which $56.2 million related to stock options and stock appreciation rights exercisable, and the total intrinsic value of stock options and stock appreciation rights vested and expected to vest in the future was $76.6 million. The intrinsic value of these stock options and stock appreciation rights outstanding, is the difference between the fair market value of the Company’s common stock on the last trading day of fiscal 2013 and the exercise price.

The fair value of each stock option and stock appreciation right granted during each of the three years ended December 31, 2013, 2012 and 2011 was estimated using the following weighted average assumptions:

	2013			2012			2011
Dividend yield		0.00	%		0.00	%		0.00	%
Expected volatility		57.70	%		82.09	%		97.40	%
Risk-free interest rate		0.36	%		0.73	%		0.75	%
Expected life (years)		3.5			2.5			3.5

Based on the above assumptions, the weighted average per share fair value of stock options and stock appreciation rights granted during the years ended December 31, 2013, 2012 and 2011, was $0.86, $0.91 and $2.44, respectively.

Restricted Stock Awards. During the years ended December 31, 2013 and 2012, we issued 0.3 million shares and 0.4 million shares, respectively, of restricted common stock to our officers and key employees. The shares of restricted common stock issued vest in three equal installments on each of the first three anniversaries of the issuance date. Compensation expense for these awards is being recognized using the straight-line method over the vesting period.

The following is a summary of unvested restricted stock activity for the years ended December 31, 2013 and 2012:

	2013					2012
	Number of Shares			Weighted Average Grant Date Fair Value		Number of Shares			Weighted Average Grant Date Fair Value
Outstanding, beginning of year		344,448		$	4.31		—		$	—
Granted		317,643			8.39		359,599			4.31
Vested		(114,820	)		4.31		—			—
Canceled		(8,741	)		4.29		(15,151	)		4.29
Outstanding, end of year		538,530		$	6.72		344,448		$	4.31

Performance Share Awards. During the years ended December 31, 2013 and 2012, we granted 0.2 million and 0.4 million performance share awards, respectively, to our officers and key employees. The number of performance share awards ultimately issued will be based on the Company’s actual earnings per share for the years ended December 31, 2014 (with respect to the 2012 awards (“2012 PSAs”)) and 2015 (with respect to the 2013 awards (“2013 PSAs”)), with payouts at 1-4 times the target number of shares based on actual earnings per share for these periods, subject to a minimum earnings per share threshold. We evaluate the probability of achieving earnings per share targets established under each of the performance share awards quarterly and estimate the number of shares underlying the performance share awards that are probable of being issued. Compensation expense for these awards is being recognized using the straight-line method over the requisite service period, subject to cumulative catch-up adjustments required as a result of changes in the number shares probable of being issued. As of December 31, 2013, the unamortized compensation cost related to the 2013 PSAs and 2012 PSAs considered probable of being issued was $4.7 million and $2.6 million, expected to be recognized over a weighted average period of 2.2 years and 1.2 years, respectively.

The following is a summary of performance share award activity for the years ended December 31, 2013 and 2012:

	2013					2012
	Number of Shares			Weighted Average Grant Date Fair Value		Number of Shares		Weighted Average Grant Date Fair Value
Outstanding, beginning of year		405,012		$	4.29		—	$	—
Granted		223,454			8.39		405,012		4.29
Vested		—			—		—		—
Canceled		(26,224	)		4.29		—		—
Outstanding, end of year		602,242		$	5.81		405,012	$	4.29

Other Stock-Based Awards. During the years ended December 31, 2013, 2012 and 2011, we issued 47,272 shares, 77,948 shares and 167,262 shares, respectively, of unrestricted common stock to our independent directors (excluding directors appointed by MatlinPatterson who did not receive any stock awards). Additionally, during 2012 we issued 462,119 shares of unrestricted common stock to our officers and key employees in connection with bonuses earned for the year ended December 31, 2011, reflected in the table below.

Total compensation expense recognized related to stock-based compensation was as follows:

	Year Ended December 31,
	2013		2012		2011
	(Dollars in thousands)
Stock options and stock appreciation rights	$	3,875	$	4,523	$	7,259
Unrestricted stock grants		400		488		3,980
Restricted stock grants		1,073		378		—
Performance share awards		3,667		1,762		—
Total	$	9,015	$	7,151	$	11,239

Total unrecognized compensation expense related to stock-based compensation was as follows:

	As of December 31,
	2013				2012				2011
	Unrecognized Expense		Weighted Average Period (years)		Unrecognized Expense		Weighted Average Period (years)		Unrecognized Expense		Weighted Average Period (years)
	(Dollars in thousands)
Unvested stock options and stock appreciation rights	$	5,260		1.9	$	4,395		1.7	$	3,765		1.6
Nonvested restricted stock grants		2,473		2.0		1,098		2.2		—		—
Nonvested performance share awards		7,320		1.8		5,188		2.2		—		—
Total unrecognized compensation expense	$	15,053		1.9	$	10,681		2.0	$	3,765		1.6

b. Employee Benefit Plan

We have a defined contribution plan pursuant to Section 401(k) of the Internal Revenue Code. Each employee may elect to make before-tax contributions up to the current tax limits. The Company matches employee contributions up to $5,000 per employee per year. The Company provides this plan to help its employees save a portion of their cash compensation for retirement in a tax efficient environment. Our contributions to the plan for the years ended December 31, 2013, 2012 and 2011, were $2.8 million, $2.2 million and $2.1 million, respectively.