Quarterly report pursuant to Section 13 or 15(d)

Stock-Based Compensation

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Stock-Based Compensation
 6 Months Ended
Jun. 30, 2012
Stock-Based Compensation [Abstract]  
STOCK-BASED COMPENSATION

NOTE 9 — STOCK-BASED COMPENSATION

We have a stock compensation plan, the 2006 Stock Option Plan (the “Plan”), that was adopted in 2006, and superceded a prior stock compensation plan that has been amended from time to time. The Plan was approved by our stockholders and is administered by our Board of Directors. The provisions of the Plan allow for the grant of stock appreciation rights, restricted stock awards, performance share awards and performance-based awards in addition to non-qualified and incentive stock options. Our Board of Directors and stockholders approved an amendment to the Plan to increase the number of available shares by 1,200,000 at our 2012 annual meeting of stockholders on May 25, 2012. The Plan authorizes awards to officers, key employees, non-employee directors and consultants for up to 8,950,000 shares of common stock, of which 1,424,063 shares remain available for grant at June 30, 2012. We believe that such awards provide a means of performance-based compensation to attract and retain qualified employees and better align the interests of our employees with those of our stockholders. Non-vested stock awards and stock options granted in previous years are usually granted with either a three-year or five-year ratable vesting period or with a three-year cliff vesting for performance-based awards.

Compensation cost related to time-based restricted stock awards are measured as of the closing price on the date of grant and are expensed on a straight-line basis over the vesting period of the award. Compensation cost related to performance-based restricted stock awards are also measured as of the closing price on the date of grant but are expensed in accordance with ASC 718-10-25-20, Compensation – Stock Compensation, which requires an assessment of probability of attainment of the performance target. As our performance targets are annual in nature, once we determine that the performance target outcome is probable, the year-to-date expense is recorded and the remaining expense is recorded on a straight-line basis through the end of the award’s vesting period.

 

Below is a summary of compensation expense and stock award activity (dollars in thousands):

 

                                 
    Three Months Ended
June 30, 		    Six Months Ended
June 30, 		 
    2012     2011     2012     2011  

Stock-based compensation expense

   $ 1,620     $ 1,388     $ 3,273     $ 3,101  

Non-vested shares granted

     20,500       13,250       369,750       357,000  

Performance-based non-vested shares granted

     0       0       56,250       56,250  

Stock options exercised

     10,600       19,550       79,300       116,600  

Restricted stock awards vested (includes performance-based awards)

     3,400       2,050       197,016       154,117  

We did not grant any stock option awards during the six months ended June 30, 2012 or June 30, 2011. The following table includes additional information regarding our Plan (dollars in thousands):

 

                 
    As of  
    June 30, 2012     December 31, 2011  

Unrecognized stock-based compensation cost

   $ 14,391     $ 9,058  

Weighted average years remaining vesting period

     2.54       2.05  

Total equity awards outstanding (1)

     1,823,417       1,738,533  

 

(1) Includes vested and unvested options outstanding and unvested restricted stock awards