Stock-Based Compensation

6 Months Ended

Jun. 30, 2012

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

Stock-Based Compensation

STOCK-BASED COMPENSATION

The Company's Board of Directors has granted stock incentive awards to certain employees and board members pursuant to a long term incentive plan which was approved by the Company's stockholders in May 2005. Employees have been awarded non-vested stock units with performance conditions, non-vested stock units with market conditions and non-vested restricted stock. The restrictions on the non-vested restricted stock awards lapse at the end of a specified service period, which is typically approximately three years from the date of grant. Restrictions could lapse sooner upon a business combination, death, disability or after an employee qualifies for retirement. The non-vested stock units will be converted into a number of shares of Company stock depending on performance and market conditions at the end of a specified service period, lasting approximately three years. The performance condition awards will be converted into a number of shares of Company stock based on the Company's average return on invested capital, depending on the form of award, during the service period. Similarly, the market condition awards will be converted into a number of shares depending on the appreciation of the Company's stock compared to the NASDAQ Transportation Index. Board members were granted time-based awards with approximately a six-month vesting period, which will settle when the board member ceases to be a director of the Company. The Company expects to settle all of the stock unit awards by issuing new shares of stock. The table below summarizes award activity.

	Six Months Ended				Six Months Ended
	June 30, 2012				June 30, 2011
	Number of Awards		Weighted average grant-date fair value		Number of Awards		Weighted average grant-date fair value
Outstanding at beginning of period	1,458,037		$	5.77	1,514,300		$	3.55
Granted	601,647		5.93		555,237		8.72
Converted	—		—		(291,500	)	3.14
Expired	—		—		—		—
Forfeited	(17,400	)	6.15		(41,600	)	4.97
Outstanding at end of period	2,042,284		$	5.81	1,736,437		$	5.22
Vested	390,037		$	4.45	326,400		$	3.71

The average grant-date fair value of each performance condition award, non-vested restricted stock award and time-based award granted by the Company in 2012 was $5.63, the fair value of the Company’s stock on the date of grant. The average grant-date fair value of each market condition award granted in 2012 was $7.05. The market condition awards were valued using a Monte Carlo simulation technique, a risk-free interest rate of 0.44%, a term of 36 months, and a volatility of 90.1% based on historical volatility over three years using daily stock prices.

For the six month periods ended June 30, 2012 and 2011, the Company recorded expense of $1.8 million and $1.3 million, respectively, for stock incentive awards. At June 30, 2012, there was $4.6 million of unrecognized expense related to the stock incentive awards that is expected to be recognized over a weighted-average period of 1.5 years. As of June 30, 2012, none of the awards were convertible, 390,037 units of the Board members time-based awards had vested and none of the outstanding shares of the restricted stock had vested. These awards could result in a maximum number of 2,406,684 additional outstanding shares of the Company’s common stock depending on service, performance and market results through December 31, 2014.