Note 9 - Equity-based Compensation

3 Months Ended

Mar. 31, 2016

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

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

NOTE i—EQUITY-BASED COMPENSATION

Grants for the Three Months ended March 31, 2016 and March 31, 2015:

The weighted-average estimated fair value of employee stock options and restricted stock units ("RSUs") granted during the three months ended March 31, 2016 and March 31, 2015 was $7.70 and $8.39 per share, respectively, with the following weighted-average assumptions (annualized percentages):

	Three months ended March 31, 2016		Three months ended March 31, 2015
Volatility (1)		46.02%		49.04%
Risk-free interest rate (1)		2.29%		1.96%
Dividend yield (1)		0%		0%
Pre-vest cancellation rate		3.43%		3.62%
Post-vest cancellation rate (1)		3.44%		3.86%
Suboptimal exercise factor (1)		1.69		1.46

The expected life of employee stock options is impacted by all of the underlying assumptions used in the Company’s model. The binomial model assumes that employees’ exercise behavior is a function of the remaining contractual life of the stock option and the extent to which the stock option is in-the-money (i.e., the average stock price during the period is above the exercise price of the stock option). The binomial model estimates the probability of exercise as a function of these two variables based on the history of exercises and cancellations of past stock option and SAR grants made by the Company. The expected life for options granted during the three months ended March 31, 2016 and 2015 derived from the binomial model was 5.63 and 2.02 years, respectively. The RSUs granted during the three months ended March 31, 2016 and 2015 were not included in the average calculated numbers in the table above since those assumptions were not used in the RSU calculation.

Employee Stock Benefit Plans

As of March 31, 2016, the Company had two equity incentive plans from which the Company may grant future equity awards and three expired equity incentive plans from which no future equity awards may be granted but had outstanding equity awards granted prior to expiration. The Company also had one employee stock purchase plan. As of March 31, 2016, approximately 1,056,000 shares of common stock remain available for grant under the Company’s employee stock purchase plan and 547,000 shares of common stock remain available for grant under the Company’s equity incentive plans.

The table below presents a summary of information relating to the Company’s stock option, RSU and SAR grants pursuant to its equity incentive plans:

	Number of Options/SARs/R SUs			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (years) (3)		Aggregate Value (*)
	in thousands							in thousands
Outstanding at December 31, 2015		3,740		$	6.22
Options granted		64			9.44
RSUs granted		502			-
Options / SARs / RSUs cancelled/forfeited/expired		(75	)		9.95
Options / SARs exercised and RSUs vested		(330	)	$	3.03
Outstanding at March 31, 2016 (1)		3,901		$	5.67		3.34	$	14,447
Exercisable at March 31, 2016 (2)		2,619		$	7.43		2.98	$	5,194

(*) Calculation of aggregate intrinsic value is based on the share price of the Company’s common stock on March 31, 2016 ($9.12 per share).

(1) Due to the ceiling imposed on the stock appreciation right ("SAR") grants, the outstanding amount above can be exercised for a maximum of 3,334 shares of the Company’s common stock as of March 31, 2016. SAR grants made prior to January 1, 2009 are convertible for a maximum number of shares of the Company’s common stock equal to 50% of the SARs subject to the grant. SAR grants made on or after January 1, 2009 and before January 1, 2010 are convertible for a maximum number of shares of the Company’s common stock equal to 75% of the SARs subject to the grant. SAR grants made on or after January 1, 2010 and before January 1, 2012 are convertible for a maximum number of shares of the Company’s common stock equal to 66.67% of the SARs subject to the grant. SAR grants made on or after January 1, 2012 are convertible for a maximum number of shares of the Company’s common stock equal to 50% of the SARs subject to the grant.

(2) Due to the ceiling imposed on the SAR grants, the exercisable amount above can be exercised for a maximum of 2,052 shares of the Company’s common stock as of March 31, 2016.

(3) Calculation of weighted average remaining contractual term does not include the RSUs that were granted, which have indefinite contractual term.

Additional information about stock options, SARs and RSUs outstanding and exercisable at March 31, 2016 with exercise prices above $9.12 per share (the closing price of the Company’s common stock on March 31, 2016) is as follows:

	Exercisable				Unexercisable				Total
Exercise Prices	Number of Options/ SARs / RSUs (in thousands)		Weighted Average Exercise Price		Number of Options/ SARs / RSUs (in thousands)		Weighted Average Exercise Price		Number of Options/ SARs / RSUs (in thousands)		Weighted Average Exercise Price
Above $9.12		267	$	12.02		170	$	10.45		437	$	11.41
Less than $9.12		2,352	$	6.91		1,112	$	0.80		3,464	$	4.95
Total		2,619	$	7.43		1,282	$	2.08		3,901	$	5.67

The Company’s aggregate equity-based compensation expense for the three months ended March 31, 2016 and 2015 totaled $985 and $1,253, respectively. The Company did not recognize any income tax benefit relating to the Company’s equity-based compensation expense for the three months ended March 31, 2016 and 2015.

As of March 31, 2016, there was $6,510 of total unrecognized equity-based compensation expense related to unvested equity-based compensation awards granted under the Company’s equity incentive plans. This amount is expected to be recognized during the period from 2016 through 2020.