LONG-TERM EQUITY-BASED COMPENSATION PROGRAM (Tables)

9 Months Ended

Sep. 30, 2012

LONG-TERM EQUITY-BASED COMPENSATION PROGRAM [Abstract]

A summary of Options/SARs activity for the nine month periods ended September 30, 2012 and 2011 is presented below:

	2012					2011
	# Options/ SARs			Weighted Average Exercise Price		# Options / SARs			Weighted Average Exercise Price
Outstanding at beginning of period		564,666		$	14.91		531,168		$	13.06
Granted		198,000		$	17.01		240,500		$	18.34
Exercised		—			—		(35,670	)		8.22
Expired		—			—		(122,500	)	$	15.86
Forfeited		(121,000	)	$	16.16		(37,332	)	$	14.09
Outstanding at end of period		641,666		$	15.33		576,166		$	14.90
Options exercisable at September 30		321,020		$	13.24		189,032		$	12.15
Weighted average fair value of options	$	7.55				$	7.78
Aggregate intrinsic value of all options	-					—
Weighted average contractual term	2.9 years					3.5 years

Summarizes nonvested options outstanding and related weighted average grant date fair value

The following table summarizes nonvested options outstanding and the related weighted average grant date fair value at September 30, 2012:

	# Options/ SARs			Weighted Average Grant Date Fair Value
Nonvested at December 31, 2011		377,648		$	8.56
Granted		198,000		$	7.08
Vested		(176,337	)	$	7.69
Expired or cancelled		—			—
Forfeited		(78,665	)	$	8.17
Nonvested at September 30, 2012		320,646		$	8.22

Fair value of options/SARs estimated at date of grant using weighted average assumptions

ALC uses the Black-Scholes option value model to estimate the fair value of stock options and similar instruments. Stock option valuation models require various assumptions, including the expected stock price volatility, risk-free interest rate, dividend yield, and forfeiture rate. In estimating the fair value of the Options/SARs approved on March 15, 2012, the Company used a risk free rate equal to the five year U.S. Treasury yield in effect on the first business date after the grant date. The expected life of the Options/SARs (five years) was estimated using expected exercise behavior of option holders. Expected volatility was based on ALC's Class A Common Stock volatility since it began trading on November 10, 2006, and ending on the date of grant. Because the Class A Common Stock has traded for less than the expected contractual term, an average of a peer group's historical volatility for a period equal to the Options/SARs' expected life, ending on the date of grant, was compared to the historical ALC volatility with no material difference. Forfeitures are estimated at the time of valuation and reduce expense ratably over the vesting period. Because of a lack of history, the forfeiture rate was estimated at zero percent of the Options/SARs awarded and may be adjusted periodically based on the extent to which actual forfeitures differ, or are expected to differ, from the previous estimate. The Options/SARs have characteristics that are significantly different from those of traded options and changes in the various input assumptions can materially affect the fair value estimates. The fair value of the Options/SARs was estimated at the date of grant using the following weighted average assumptions.

	March 15,			May 2,			March 2,			May 3 ,			Mar 3,
	2012			2011			2011			2010			2010
Expected life from grant date (in years)		5			5			5			5			5
Risk-free interest rate		1.11	%		1.88	%		2.21	%		2.13	%		2.33	%
Volatility		55.52	%		57.68	%		58.63	%		62.6	%		63.7	%
Dividend yield		2.4	%		—			—			—			—
Weighted average fair value (per share)	$	7.08		$	8.87		$	9.69		$	8.99		$	8.74