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Stock-Based Compensation
 12 Months Ended
Dec. 31, 2011
Stock-Based Compensation [Abstract]  
Stock-Based Compensation
7. Stock-Based Compensation

2005 Incentive Compensation Plan

On May 10, 2010, our stockholders approved the Amended and Restated 2005 Incentive Compensation Plan (the “2005 Plan”) which replaced our 2003 Stock Option Plan (the “2003 Plan”) as to future grants. The 2005 Plan extends through March 2015 and allows for the granting of restricted stock, restricted stock units, incentive stock options, nonqualified stock options, and performance awards to officers and a selected number of employees. The number of shares of Common Stock that may be issued under the 2005 Plan may not exceed 500,000 shares of Class B Common Stock, 1,500,000 shares of Class A Common Stock of which up to 500,000 shares of Class A Common Stock may be issued pursuant to incentive stock options and 500,000 Class A Common Stock issuable upon conversion of Class B Common Stock. Awards denominated in Class A Common Stock may be granted to any employee under the 2005 Plan. However, awards denominated in Class B Common Stock may only be granted to Edward K. Christian, President, Chief Executive Officer, Chairman of the Board of Directors, and the holder of 100% of the outstanding Class B Common Stock of the Company. Stock options granted under the 2005 Plan may be for terms not exceeding ten years from the date of grant and may not be exercised at a price which is less than 100% of the fair market value of shares at the date of grant.

Stock-Based Compensation

The Company’s stock-based compensation expense is measured and recognized for all stock-based awards to employees using the estimated fair value of the award. Compensation expense is recognized over the period during which an employee is required to provide service in exchange for the award. For these awards, we have recognized compensation expense using a straight-line amortization method. Accounting guidance requires that stock-based compensation expense be based on awards that are ultimately expected to vest, therefore stock-based compensation has been adjusted for estimated forfeitures. When estimating forfeitures, we consider voluntary termination behaviors as well as trends of actual option forfeitures. The compensation expense recognized in corporate general and administrative expense of our results of operations for the years ended December 31, 2011, 2010 and 2009 was approximately $196,000, $567,000 and $858,000, respectively. The associated future income tax benefit recognized for the years ended December 31, 2011, 2010 and 2009 was approximately $80,000, $231,000 and $377,000, respectively.

We calculated the fair value of each option award on the date of grant using the Black-Scholes option pricing model. The estimated expected volatility, expected term of options and estimated annual forfeiture rate were determined based on historical experience of similar awards, giving consideration to the contractual terms of the stock-based awards, vesting schedules and expectations of future employee behavior. The risk-free interest rate was based on the U.S. Treasury yield curve in effect at the time of grant.

 

The following summarizes the stock option transactions for the 2005 and 2003 Plans and the 1992 Stock Option Plan (the “1992 Plan”) for the year ended December 31:

 

                                 
    Number of
Options		     Weighted
Average
Exercise Price		     Weighted
Average
Remaining
Contractual
Term (Years)		     Aggregate
Intrinsic
Value		  

Outstanding at January 1, 2009

     450,059     $ 54.11                  

Granted

     —       —                  

Exercised

     —       —                  

Forfeited/canceled/expired

     (61,590 )      51.24                  
   

 

 

    

 

 

    

 

 

    

 

 

  

Outstanding at December 31, 2009

     388,469     $ 54.56       4.2     $ —  
   

 

 

    

 

 

    

 

 

    

 

 

  

Granted

     —       —                  

Exercised

     —       —                  

Forfeited/canceled/expired

     (94,476 )      63.48                  
   

 

 

    

 

 

    

 

 

    

 

 

  

Outstanding at December 31, 2010

     293,993     $ 51.70       3.9     $ —  
   

 

 

    

 

 

    

 

 

    

 

 

  

Granted

     —       —                  

Exercised

     —       —                  

Forfeited/canceled/expired

     (66,246 )      58.00                  
   

 

 

    

 

 

    

 

 

    

 

 

  

Outstanding at December 31, 2011

     227,747     $ 49.86       3.6     $ 135,886  
   

 

 

    

 

 

    

 

 

    

 

 

  

Vested and Exercisable at December 31, 2011

     220,785     $ 50.24       3.5     $ 135,886  
   

 

 

    

 

 

    

 

 

    

 

 

  

The following summarizes the non-vested stock option transactions for the 2005, 2003 and 1992 Plans for the year ended December 31:

 

                 
    Number of
Options		     Weighted
Average
Grant Date
Fair Value		  

Non-vested at January 1, 2009

     126,325     $ 20.13  

Granted

     —       —  

Vested

     (42,279 )      20.87  

Forfeited/canceled/expired

     (3,593 )      20.14  
   

 

 

    

 

 

  

Non-vested at December 31, 2009

     80,453     $ 19.74  

Granted

     —       —  

Vested

     (41,653 )      20.88  

Forfeited/canceled/expired

     (3,645 )      18.59  
   

 

 

    

 

 

  

Non-vested at December 31, 2010

     35,155     $ 18.51  

Granted

     —       —  

Vested

     (27,863 )      18.30  

Forfeited/canceled/expired

     (330 )      19.30  
   

 

 

    

 

 

  

Non-vested at December 31, 2011

     6,962     $ 19.30  
   

 

 

    

 

 

  

 

The following summarizes the stock option transactions for the Directors Plan for the year ended December 31:

 

                         
    Number of
Options		     Weighted
Average
Price
per  Share		     Aggregate
Intrinsic
Value		  

Outstanding at January 1, 2009

     1,036     $ 0.035     $ 6,802  

Granted

     —       —          

Exercised

     (1,036 )      0.035          

Forfeited

     —       —          
   

 

 

    

 

 

    

 

 

  

Outstanding and exercisable at December 31, 2009

     —     $ —     $ —  
   

 

 

    

 

 

    

 

 

  

The total intrinsic value of stock options exercised during the year ended December 31, 2009 was $6,274. Cash received from stock options exercised during the year ended December 31, 2009 was not significant.

The following summarizes the restricted stock transactions for the year ended December 31:

 

                 
    Shares     Weighted
Average
Grant Date
Fair Value		  

Outstanding at January 1, 2009

     53,649     $ 32.60  

Granted

     —       —  

Vested

     (14,356 )      35.82  

Forfeited/canceled/expired

     (1,925 )      30.84  
   

 

 

    

 

 

  

Outstanding at December 31, 2009

     37,368     $ 31.45  

Granted

     —       —  

Vested

     (14,097 )      35.92  

Forfeited/canceled/expired

     (2,151 )      28.85  
   

 

 

    

 

 

  

Outstanding at December 31, 2010

     21,120     $ 28.73  

Granted

     —       —  

Vested

     (10,632 )      31.28  

Forfeited/canceled/expired

     (574 )      25.76  
   

 

 

    

 

 

  

Non-vested and outstanding at December 31, 2011

     9,914     $ 26.15  
   

 

 

    

 

 

  

Weighted average remaining contractual life (in years)

     1.3          

The weighted average grant date fair value of restricted stock that vested during 2011, 2010 and 2009 was approximately $333,000, $506,000 and $514,000, respectively. The net value of unrecognized compensation cost related to unvested restricted stock awards aggregated $127,000, $329,000 and $750,000 at December 31, 2011, 2010 and 2009, respectively.

For the years ended December 31, 2011, 2010 and 2009 we had approximately $383,000, $926,700 and $1,365,600, respectively, of total compensation expense related to stock-based arrangements. The associated tax benefit recognized for the years ended December 31, 2011, 2010 and 2009 was approximately $157,000, $378,000 and $600,800, respectively.