2. STOCKHOLDERS’ EQUITY AND STOCK-BASED COMPENSATION

Restricted Stock Awards

Lionbridge issued 1,336,500 and 188,542 shares of restricted common stock and restricted stock units, respectively, under the Company’s 2011 Stock Incentive Plan, during the six month period ended June 30, 2014 representing a fair market value of $8.4 million. Of the total 1,525,042 shares of restricted common stock and restricted stock units issued in the six month period ended June 30, 2014, 1,161,450 have restrictions on disposition which lapse over four years from the date of grant, 35,592 have restrictions on disposition which lapse over thirteen months from the grant date and 328,000 shares of restricted common stock were granted to certain employees through the long-term incentive plan (the “LTIP”) as long-term performance-based stock incentive awards under the Corporation’s 2011 Stock Incentive Plan. Pursuant to the terms of the LTIP, restrictions with respect to the stock will generally lapse upon the achievement of revenue and profitability targets within the two calendar years from and including the year of grant. The grant date fair value of the shares is recognized over the requisite period of performance once achievement of criteria is deemed probable. On a quarterly basis, the Company estimates the likelihood of achieving performance goals and records expense accordingly. Actual results, and future changes in estimates, may differ substantially from the Company’s current estimates. If the targets are not achieved, the shares will be forfeited by the employee in accordance with the forfeiture table per the grant agreements.

Stock-based Compensation

The Company recognizes expense for stock options, performance-based restricted stock awards and time-based restricted stock awards pursuant to the authoritative guidance. Total compensation expense related to stock options, performance-based restricted stock awards and time-based restricted stock awards are classified in the condensed consolidated statements of operations line items as follows (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2014		2013		2014		2013
Cost of revenue	$	44	$	18	$	64	$	46
Sales and marketing		517		309		1,038		620
General and administrative		1,406		1,322		2,657		2,620
Research and development		25		11		47		24

Total stock-based compensation expense	$	1,992	$	1,660	$	3,806	$	3,310

As of June 30, 2014, future compensation cost related to non-vested stock options, less estimated forfeitures, is approximately $1.3 million and will be recognized over an estimated weighted-average period of approximately 2.5 years. Lionbridge currently expects to amortize $12.0 million of unamortized compensation in connection with restricted stock awards outstanding as of June 30, 2014 over an estimated weighted-average period of approximately 2.5 years.

Share Repurchasing Program

On October 30, 2012, Lionbridge’s Board of Directors authorized a share repurchasing program for up to $18 million over three years. During the program, the Company is authorized to repurchase Lionbridge common shares with a total value up to $6 million per year, subject to certain market rate conditions. The Company made the following purchases since the program’s inception in October 2012:


	Total Number of		Average Price
Period	Shares Purchased		Paid Per Share
May 1, 2013—May 31, 2013		182,818	$	2.80
June 1, 2013—June 30, 2013		1,132,734	$	3.02
July 1, 2013—July 31, 2013		118,275	$	3.07
August 1, 2013—August 31, 2013		21,887	$	3.31
September 1, 2013—September 30, 2013		108,886	$	3.63
October 1, 2013—October 31, 2013		117,591	$	3.77

Total 2013 repurchases		1,682,191	$	3.10

May 1, 2014—May 31, 2014		152,656	$	5.71
June 1, 2014—June 30, 2014		323,794	$	5.75

Total 2014 repurchases		476,450	$	5.73

Total program repurchases		2,158,641	$	3.68