Share-Based Compensation

9 Months Ended

Sep. 30, 2011

Share-Based Compensation [Abstract]

Share-Based Compensation

Note 2. Share-Based Compensation

The following table summarizes share-based compensation expense for the three and nine months ended September 30:

	Three months ended						Nine months ended
	September 30,						September 30,
	2011			2010			2011			2010
	(in thousands)
Stock options	$	146		$	152		$	476		$	415
Restricted stock/performance-based restricted stock (“PBRS”)		794			736			2,409			2,211
Restricted stock units/PBRS units		(35	)		60			54			125
Performance unit incentive plan (“PUP”)		86			—			345			(3	)
Total share-based compensation before income tax benefit		991			948			3,284			2,748
Income tax benefit		(358	)		(329	)		(1,163	)		(957	)
Total share-based compensation, net of income tax benefit	$	633		$	619		$	2,121		$	1,791

In addition, $124,000 and $509,000 of costs associated with share-based compensation (including $43,000 for the nine months ended September 30, 2010 of restricted stock units and PBRS units presented below) were included in restructuring charges during the nine months ended September 30, 2011 and 2010, respectively.

The following table summarizes restricted stock and PBRS activity during the nine months ended September 30, 2011:

	Restricted Stock					PBRS
				Weighted-Average					Weighted-Average
				Grant Date					Grant Date
	Shares			Fair Value		Shares			Fair Value
Balance at January 1, 2011		478,499		$	21.51		18,830		$	33.02
Granted		177,350			22.91		—			—
Vested		(91,212	)		31.31		(18,414	)		33.42
Forfeited		(4,400	)		21.19		—			—
Balance at September 30, 2011		560,237			20.36		416			15.36

The unamortized cost of all outstanding restricted stock and PBRS awards as of September 30, 2011 was $4.4 million, which Viad expects to recognize in its consolidated financial statements over a weighted-average period of approximately 2.4 years. During the nine months ended September 30, 2011 and 2010, the Company repurchased 28,627 shares for $679,000 and 28,407 shares for $573,000, respectively, related to tax withholding requirements on vested share-based awards. As of September 30, 2011, there were 997,903 total shares available for future grant.

The following table summarizes the liability-based award activity during the nine months ended September 30, 2011:

	Restricted Stock Units				PBRS Units					PUP Awards
			Weighted-Average					Weighted-Average					Weighted-Average
			Grant Date					Grant Date					Grant Date
	Units		Fair Value		Units			Fair Value		Units			Fair Value
Balance at January 1, 2011		26,050	$	17.18		3,914		$	15.36		102,960		$	33.81
Granted		12,550		23.01		—			—		95,500			23.02
Vested		—		—		(1,958	)		15.36		—			—
Cancelled		—		—		—			—		(102,960	)		33.81
Balance at September 30, 2011		38,600		19.07		1,956			15.36		95,500			23.02

As of September 30, 2011 and December 31, 2010, Viad had liabilities recorded of $409,000 and $407,000, respectively, related to restricted stock unit and PBRS unit liability awards. A portion of the 2009 PBRS unit awards vested effective December 31, 2009 and cash payouts of $52,000 and $37,000 were distributed in January 2011 and March 2010, respectively.

As of September 30, 2011, Viad had a liability recorded of $345,000 related to PUP awards. The PUP awards for the 2007-2009 period vested effective December 31, 2009 and a cash payout of $19,000 was distributed in March 2010. No cash payouts of PUP awards were made during the nine months ended September 30, 2011. In March 2011, 102,960 PUP awards for the 2008-2010 period were cancelled as the performance conditions related to those awards were not achieved.

The following table summarizes stock option activity during the nine months ended September 30, 2011:

				Weighted-
				Average		Options
	Shares			Exercise Price		Exercisable
Options outstanding at January 1, 2011		763,794		$	23.38		451,194
Exercised		(7,866	)		20.56
Forfeited or expired		(147,911	)		24.42
Options outstanding at September 30, 2011		608,017			23.17		401,438

The total unrecognized cost related to non-vested stock option awards was $812,000 as of September 30, 2011, which Viad expects to recognize in the consolidated financial statements over a weighted-average period of approximately 1.7 years. No stock options were granted during the nine months ended September 30, 2011.

In addition to the above, Viad had stock options outstanding which were granted to employees of MoneyGram International, Inc. (“MoneyGram”) prior to the spin-off of that company in 2004. As of September 30, 2011, there were 10,864 of such options outstanding and exercisable, both with exercise prices ranging from $19.57 to $26.31. The weighted-average remaining contractual life of these options outstanding was less than one year. During the nine months ended September 30, 2011, 100 options were exercised by MoneyGram participants at an exercise price of $19.57.