Stock-Based Compensation

12 Months Ended

Dec. 31, 2011

Stock-Based Compensation [Abstract]

Stock-Based Compensation

12. Stock-Based Compensation

In 1999, the Company adopted the American Locker Group Incorporated 1999 Stock Incentive Plan, permitting the Company to provide incentive compensation of the types commonly known as incentive stock options, stock options and stock appreciation rights. The price of option shares or appreciation rights granted under the Plan shall not be less than the fair market value of common stock on the date of grant, and the term of the stock option or appreciation right shall not exceed ten years from date of grant. Upon exercise of a stock appreciation right granted in connection with a stock option, the optionee shall surrender the option and receive payment from the Company of an amount equal to the difference between the option price and the fair market value of the shares applicable to the options surrendered on the date of surrender. Such payment may be in shares, cash or both at the discretion of the Company’s Stock Option-Executive Compensation Committee.

At December 31, 2011 and 2010, there were no stock appreciation rights outstanding.

Key inputs and assumptions used to estimate the fair value of stock options include the grant price of the award, the expected option term, volatility of the Company’s stock, the risk-free rate, estimated forfeitures and the Company’s dividend yield. Estimates of fair value are not intended to predict actual future events or the value ultimately realized by employees who receive equity awards, and subsequent events are not indicative of the reasonableness of the original estimates of fair value made by the Company.

No stock options were granted during 2011, 2010 and 2009.

Results of operations for 2011, 2010 and 2009 include pretax stock option expense of $0, $0 and $4,795, respectively. These expenses were included in selling, administrative and general expense.

The following table sets forth the activity related to the Company’s stock options for the years ended December 31:

	2011				2010				2009
	Options		Weighted Average Exercise Price		Options		Weighted Average Exercise Price		Options			Weighted Average Exercise Price
Outstanding—beginning of year		12,000	$	4.95		12,000	$	4.95		40,000		$	6.82
Expired or forfeited		—		—		—		—		(28,000	)		7.62
Outstanding—end of year		12,000	$	4.95		12,000	$	4.95		12,000		$	4.95
Exercisable—end of year		12,000				12,000				12,000

The following tables summarize information about stock options vested and unvested as of December 31, 2011:

Vested
Exercise Price		Number of Options		Intrinsic Value		Remaining Years of Contractual Life
$	4.95		12,000		—		5.7

At December 31, 2011, the total unrecognized compensation cost related to stock options expected to vest was $0. At December 31, 2011, 37,000 options remain available for future issuance under the Plan.