| Stock-Based Compensation |
| 11. |
Stock-Based Compensation |
Stock Options
The Company has stock options and restricted stock outstanding under the 2004 Stock Incentive Plan (the "2004") Plan and the 2010 Long-Term Incentive Plan (the "2010 Plan"). As of September 30, 2011, the maximum number of shares available for future issuance under the 2010 Plan is 2,419,785.
Employee stock-based compensation expense was as follows:
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Three Months Ended
September 30, |
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Nine Months Ended
September 30, |
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2011 |
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2010 |
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2011 |
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2010 |
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Employee stock-based compensation expense
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$ |
714 |
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$ |
584 |
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$ |
2,359 |
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$ |
1,108 |
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Tax effect on employee stock-based compensation expense
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(261 |
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(221 |
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(920 |
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(419 |
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Net effect on income
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$ |
453 |
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$ |
363 |
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$ |
1,439 |
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$ |
689 |
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The following weighted average assumptions were used to value options granted during the periods indicated:
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Three Months Ended
September 30, |
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Nine Months Ended
September 30, |
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2011 |
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2010 |
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2011 |
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2010 |
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Grant date fair value of options
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$ |
— |
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$ |
3.64 |
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$ |
5.26 |
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$ |
3.71 |
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Volatility
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— |
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37.5 |
% |
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39.3 |
% |
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37.5 |
% |
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Risk-free interest rate
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— |
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2.2 |
% |
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2.5 |
% |
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2.2 |
% |
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Dividend yield
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— |
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0.0 |
% |
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0.0 |
% |
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0.0 |
% |
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Expected term (in years)
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— |
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6.3 |
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6.0 |
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6.2 |
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The following table summarizes option activity under the 2004 Plan and 2010 Plan:
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Shares |
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Weighted-
Average
Exercise Price |
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Weighted-
Average
Remaining
Contractual Life
(Years) |
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Aggregate
Intrinsic Value |
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Outstanding as of December 31, 2010
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4,998,337 |
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$ |
7.64 |
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Granted
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437,333 |
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12.59 |
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Exercised
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(192,086 |
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5.58 |
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Forfeited
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(5,267 |
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7.99 |
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Outstanding as of March 31, 2011
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5,238,317 |
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8.13 |
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7.6 |
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$ |
27,821 |
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Granted
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— |
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— |
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Exercised
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(177,865 |
) |
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6.68 |
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Forfeited
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(19,825 |
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8.69 |
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Outstanding as of June 30, 2011
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5,040,627 |
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8.18 |
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7.3 |
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33,631 |
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Granted
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— |
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— |
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Exercised
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(67,361 |
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6.55 |
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Forfeited
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(145,494 |
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9.51 |
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Outstanding as of September 30, 2011
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4,827,772 |
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8.16 |
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7.1 |
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10,248 |
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Options exercisable
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2,997,830 |
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7.13 |
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5.9 |
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8,759 |
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Exercise prices of stock options outstanding as of September 30, 2011 range from $1.10 to $13.45.
Restricted Stock
On February 28, 2011, the Company granted restricted stock awards to employees that vest one-third on each of the first three anniversaries of the grant date. The following is a summary of the activity for unvested restricted stock awards during the nine months ended September 30, 2011:
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Number of
Shares
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Weighted-
Average Grant
Date Fair Value
per Share |
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Balance at December 31, 2010
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— |
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$ |
— |
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Granted
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67,224 |
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12.55 |
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Vested
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— |
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— |
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Forfeited
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(3,119 |
) |
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12.55 |
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Balance at September 30, 2011
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64,105 |
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$ |
12.55 |
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At September 30, 2011, there was $6,951 of unrecognized compensation cost related to unvested stock options and restricted stock which the Company expects to recognize over a weighted-average period of 2.6 years.
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