Quarterly report pursuant to Section 13 or 15(d)

Stock-Based Compensation

v2.4.0.8
Stock-Based Compensation
 6 Months Ended
Jun. 30, 2013
Disclosure of Compensation Related Costs, Share-based Payments [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We have a stock compensation plan, the 2006 Stock Option Plan (the “Plan”), that was adopted in 2006, and superceded a prior stock compensation plan. The Plan 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. 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 935,556 shares remain available for grant at June 30, 2013. 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 typically granted with a five-year ratable vesting period. Non-vested stock awards and performance-based awards granted to our executive management team and our Board of Directors are typically granted with a three-year cliff vesting.
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,
 
2013
 
2012
 
2013
 
2012
Stock-based compensation expense
$
2,097

 
$
1,620

 
$
3,941

 
$
3,273

Non-vested shares granted
10,000

 
20,500

 
342,100

 
369,750

Performance-based non-vested shares granted
—

 
—

 
62,500

 
56,250

Stock options exercised
199,827

 
10,600

 
322,100

 
79,300

Restricted stock awards vested (includes performance-based awards)
6,200

 
3,400

 
280,800

 
197,016


We did not grant any stock option awards during the six months ended June 30, 2013 or June 30, 2012. The following table includes additional information regarding the Plan (dollars in thousands):
 
As of
 
June 30, 2013
 
December 31, 2012
Unrecognized stock-based compensation cost
$
21,513

 
$
13,072

Weighted average years remaining vesting period
2.66

 
2.17

Total equity awards outstanding (1)
1,367,985

 
1,615,235

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