STOCK-BASED COMPENSATION

In May 2011, the Company adopted and shareholders approved the 2011 Omnibus Incentive Plan (the “Omnibus Plan”). This plan provides for the issuance of stock options, restricted stock, stock appreciation rights and performance units to directors, officers and other eligible employees of the Company. The Omnibus Plan makes available approximately 7.5 million shares for issuance, subject to adjustments for stock dividends, recapitalizations and the like.

The Company recognizes all share-based awards to eligible employees based upon their fair value. The Company’s policy is to recognize expense for awards that have service conditions only subject to graded vesting using the straight-line attribution method. Total stock-based compensation expense was $10.0 million, $7.8 million and $7.5 million in 2015, 2014 and 2013, respectively. The amount of compensation costs related to nonvested stock options and restricted stock not yet recognized was $12.0 million at December 31, 2015, for which the weighted average remaining life was 1.8 years.

Stock Options

Stock options are awarded with an exercise price equal to the market price of the underlying stock on the date of grant, become fully exercisable three years after the date of grant and expire ten years after the date of grant. The fair value of stock option awards is estimated on the date of grant using a binomial option-pricing model that uses the assumptions noted in the following table:

Valuation Assumptions	2015			2014			2013
Risk-free interest rate		2.14	%		2.73	%		2.02	%
Expected volatility		72.5	%		72.0	%		75.3	%
Expected dividend yield		0.00	%		0.00	%		0.00	%
Expected term		5 yrs.			5 yrs.			5 yrs.

The expected volatility is based upon the Company’s historical experience. The expected term represents the period of time that options granted are expected to be outstanding. The risk-free interest rate utilized for periods throughout the contractual life of the options are based on U.S. Treasury security yields at the time of grant.

A summary of all stock option activity during 2015 is as follows:

	Number of Options		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life		Aggregate Intrinsic Value ($ in millions)
Options Outstanding at December 31, 2014		1,909,456	$	11.79		5.5	$	3.3
Granted		190,810	$	14.16
Exercised		(186,622)	$	10.78
Forfeited		(9,656)	$	12.16
Expired		(83,032)	$	23.55
Options Outstanding at December 31, 2015		1,820,956	$	11.61		5.2	$	2.3

Options Exercisable at December 31, 2015		1,398,229	$	11.25		4.3	$	2.1

During 2015, 2014 and 2013, the Company granted 190,810, 200,720, and 361,220 stock options with aggregate fair values on the date of grant of $1.7 million, $1.7 million and $2.2 million, respectively. The weighted average estimated fair value of the stock options granted in 2015, 2014 and 2013 were $8.82, $8.34 and $6.13 per stock option, respectively. The total intrinsic value of stock options exercised during 2015, 2014 and 2013 was $0.6 million, $0.7 million and $0.3 million, respectively.

Restricted Stock

Restricted stock awards vest over a period of one to three years and may be based on the achievement of specific financial performance metrics. These shares are valued at the market price on the date of grant, are forfeitable in the event of terminated employment prior to vesting and could include the right to vote and receive dividends.

A summary of all restricted stock activity during 2015 is as follows:

	Number of Shares		Weighted Average Grant Date Fair Value
Restricted Stock Outstanding at December 31, 2014		1,288,769	$	11.70
Granted		667,126	$	14.84
Vested		(396,389)	$	10.84
Forfeited		(21,390)	$	13.44
Restricted Stock Outstanding at December 31, 2015		1,538,116	$	13.25

During 2015, 2014 and 2013, the Company granted 667,126, 572,052 and 521,181 shares of restricted stock, respectively, with aggregate fair values on the date of grant of $9.9 million, $7.9 million and $5.0 million, respectively. The total fair value of restricted stock that vested during 2015, 2014 and 2013 was $5.6 million, $5.2 million and $0.6 million, respectively.

Cash-Settled Performance Units and Stock Appreciation Rights

In March 2010, the Company awarded eligible employees 326,250 cash-settled stock appreciation rights and 434,661 cash-settled performance units. The stock appreciation rights vested in March 2013 and provided each participant with the right to receive payment in cash representing the appreciation in the market value of the Company’s common stock from the grant date to the award’s vesting date. The per share exercise price of a stock appreciation right is equal to the closing market price of the Company’s stock on the date of grant. As of December 31, 2013, all stock appreciation rights awarded by the Company were fully vested. The total fair value of cash-settled stock appreciation rights that vested in 2013 was $0.8 million. The performance units vested in March 2013 and provided each participant with the right to receive payments in cash for the lesser of the market value of the Company’s stock on the date of grant or the vesting date. As of December 31, 2013, all cash-settled performance units awarded by the Company were fully vested. The total fair value of cash-settled performance units that vested in 2013 was $3.0 million. The number of performance units actually awarded to eligible employees was based on the achievement of specific financial performance metrics.