Share-Based Compensation Arrangements

9 Months Ended

Sep. 30, 2013

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

Share-Based Compensation Arrangements

Share-Based Compensation Arrangements

We may grant Stock Appreciation Rights ("SARs") and phantom shares under our Long-Term Incentive Cash Award Plan. As both the SARs and the phantom shares are settled in cash rather than by issuing equity instruments, we record an expense with a corresponding liability on our balance sheet. The expense is based on the fair value of the awards on the last day of the reporting period and represents an amortization of that fair value over the vesting period of the awards.

In March of 2013 and 2012, we granted performance phantom shares to make our annual equity incentives reflect our performance during the respective year.

Our liability with regard to these awards is re-measured in each quarterly reporting period. The fair value of the phantom shares is based on the closing stock price on our Class A common stock on the last day of the period. At September 30, 2013 and December 31, 2012, the closing stock price on our Class A common stock was $8.95 and $4.62 respectively.

We measure the fair value of each SAR based on the closing stock price of Class A common stock on the last day of the period using a Black-Scholes valuation model. The fair value of each SAR was estimated as of September 30, 2013 and 2012 using the following assumptions:

	September 30, 2013		September 30, 2012
Risk-free interest rate	0.18%-0.73%		0.25%-0.49%
Dividend yield	0.0	%	0.0	%
Expected life (years)	1.4-3.3 years		2.4-4.3 years
Volatility	61.31	%	65.55	%

As of September 30, 2013, we estimate that it is more likely than not that we will partially achieve some of our target levels of performance for 2013. Related to this plan for the three months ended September 30, 2013 and 2012 was income of $0.3 million and expense of $0.2 million, respectively and $2.1 million and $1.6 million of compensation expense for the nine months ended September 30,2013 and 2012, respectively. The balance of the fair value that has not yet been recorded as expense is considered an unrecognized liability. The total unrecognized compensation liability as calculated at September 30, 2013 and December 31, 2012 was $1.0 million and $0.8 million, respectively. Total cash paid under this plan for the nine months ended September 30,2013 and 2012 was $1.6 million and $0.1 million, respectively.

In addition to the awards to our employees, we grant deferred stock units ("DSUs") to our non-employee directors under our Outside Directors' Deferred Stock Unit Plan. These awards are fully vested when made. We measure the fair value of outstanding DSUs based upon the closing stock price of our Class A common stock on the last day of the reporting period. We pay out the DSUs to a director after the earlier of a Company Change in Control, as defined in the plan, or the date when he or she ceases to be a non-employee director for any reason. Since the DSUs are settled in cash rather than by issuing equity instruments, we record an expense with a corresponding liability on our balance sheet. Related to the DSUs for the three months ended September 30,2013 we recorded $0.2 million of income and for three months ended September 30,2012no material expense was recorded. Total expense related to the DSUs for the nine months ended September 30, 2013 and 2012 was $0.8 million and $0.6 million, respectively. We recorded a liability of $1.2 million and $0.6 million as of September 30, 2013 and December 31, 2012, respectively. Total cash paid for DSUs for the nine months ended September 30, 2013 was $0.2 million; no cash was paid out in the first nine months ended September 30, 2012.