4. STOCK-BASED COMPENSATION

Stock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense ratably over the requisite service period, which is generally the vesting period, net of estimated forfeitures.

The Company awards non-vested stock to employees, directors and executive officers in the form of Restricted Stock Awards (“RSAs”) and Restricted Stock Units (“RSUs”), market-based RSAs and RSUs, stock options and performance-based RSAs and RSUs. The Compensation Committee of the Company’s Board of Directors approves stock-based compensation awards for all employees and executive officers of the Company. The Corporate Governance and Nominating Committee of the Company’s Board of Directors approves stock-based compensation awards for all non-employee directors of the Company. The Company uses the fair-market value of the Company’s common stock on the date the award is approved to measure fair value for service-based awards, a Monte Carlo simulation model to determine both the fair value and requisite service period of market-based awards and the Black-Scholes option-pricing model to determine the fair value of stock option awards. The Company presents as a financing activity in the consolidated statement of cash flows the benefits of tax deductions in excess of the tax-effected compensation of the related stock-based awards for the options exercised and RSAs and RSUs vested.

The Company recognized pre-tax compensation expense recorded in salaries and related in the consolidated statements of operations as follows:


	Three months ended June 30,				Six months ended June 30,
	2013		2012		2013		2012
Non-Vested stock, included in salaries and related	$	5,471	$	7,429	$	12,264	$	15,702
Stock options, included in salaries and related		—		—		—		51

Total	$	5,471	$	7,429	$	12,264	$	15,753

During the first six months of 2013, the Company granted an aggregate of 1,164,848 RSAs and 266,500 RSUs to approximately 51 employees, executive officers and directors of the Company. The RSAs and RSUs vest in various increments on the anniversaries of the individual grant dates, through June 5, 2017, subject to the recipient’s continued employment or service through each applicable vesting date.

The Company’s non-vested stock activity is as follows (shares in thousands):


	Six months ended June 30,
	2013					2012
	Shares			Weighted Average Fair Value at Grant Date		Shares			Weighted Average Fair Value at Grant Date
Non-vested at beginning of period		7,639		$	10.01		7,432		$	13.85
Granted RSAs		1,165		$	4.68		3,103		$	6.88
Granted RSUs		267		$	4.38		1,201		$	6.89
Forfeited		(629	)	$	9.32		(585	)	$	13.66
Vested		(2,516	)	$	10.59		(2,393	)	$	15.35

Non-vested at end of period		5,926		$	8.43		8,758		$	10.03

As of June 30, 2013, the unrecognized compensation expense related to non-vested stock was $32,230 which is being amortized over the requisite service period on a straight-line basis. The remaining weighted average term over which the unamortized compensation expense will be recognized is 1.5 years.

In connection with the Company’s corporate restructuring programs, the Company accelerated the vesting of 418,333 RSA’s and RSU’s to two former executives in the second quarter of 2013, the expense of which is recorded in restructuring and discontinued operations.

The Company’s stock option activity is as follows (shares in thousands):


	Six months ended June 30,
	2013					2012
	Shares			Weighted Average Exercise Price		Shares			Weighted Average Exercise Price
Outstanding as of the beginning of the period		1,029		$	29.04		1,560		$	24.10
Exercised		—		$	—		(3	)	$	9.11
Forfeited/expired/cancelled		(69	)	$	20.23		(64	)	$	27.34

Outstanding at the end of the period		960		$	29.68		1,493		$	23.97

Options Excercisable at June 30, 2013		960		$	29.68		1,493		$	23.97

Aggregate intrinsic value of options exercised during the period	$	—				$	2.00

Aggregate intrinsic value is calculated as the difference between the closing market price of the Company’s common stock as of each exercise date and the exercise price of the underlying options. As of June 30, 2013, all stock options granted have been fully expensed.