Quicksilver Stockholders' Equity

9 Months Ended

Sep. 30, 2011

Quicksilver Stockholders' Equity [Abstract]

Quicksilver Stockholders' Equity

9.  QUICKSILVER STOCKHOLDERS' EQUITY

Common Stock, Preferred Stock and Treasury Stock

          We are authorized to issue 400 million shares of common stock with a $0.01 par value per share and 10 million shares of preferred stock with a $0.01 par value per share.  At September 30, 2011 and December 31, 2010, we had 176.9 million and 170.5 million shares of common stock outstanding, respectively.

          Note 16 to the consolidated financial statements in our 2010 Annual Report on Form 10-K contains additional information about our equity-based compensation plan.

Stock Options

          Options to purchase shares of common stock were granted in 2011 with an estimated fair value of $7.6 million.  The following summarizes the values from and assumptions for the Black-Scholes option pricing model for stock options issued during the nine months ended September 30, 2011:

Wtd avg grant date fair value	$9.16
Wtd avg grant date	Jan 3, 2011
Wtd avg risk-free interest rate	2.38%
Expected life (in years)	6.0
Wtd avg volatility	66.8%
Expected dividends	-

          The following table summarizes our stock option activity for the nine months ended September 30, 2011:

				Wtd Avg Exercise		Wtd Avg Remaining		Aggregate Intrinsic
	Shares			Price		Contractual Life		Value
						(In years)		(In thousands)
Outstanding at January 1, 2011		3,348,642		$	11.10
Granted		834,970			14.88
Exercised		(118,140	)		6.21
Cancelled		(148,764	)		10.78
Expired		(60,021	)		24.28
Outstanding at September 30, 2011		3,856,687		$	11.88		7.7	$	2,655
Exercisable at September 30, 2011		1,910,306		$	11.52		7.1	$	1,762

          We estimate that a total of 3.8 million stock options will become vested including those options already exercisable.  Compensation expense related to stock options of $5.3 million and $5.2 million was recognized for the nine months ended September 30, 2011 and 2010, respectively.  Cash received from the exercise of stock options totaled $0.7 million for the nine months ended September 30, 2011.  The total intrinsic value of those options exercised was $1.0 million.

Restricted Stock

          The following table summarizes our restricted stock and stock unit activity for the nine months ended September 30, 2011:

	Payable in shares					Payable in cash
				Wtd Avg Grant Date					Wtd Avg Grant Date
	Shares			Fair Value		Shares			Fair Value
Outstanding at January 1, 2011		2,329,089		$	11.27		372,633		$	10.31
Granted		1,389,404			13.89		214,515			14.88
Vested		(1,100,235	)		12.15		(150,505	)		9.76
Cancelled		(137,818	)		12.17		(60,852	)		13.20
Outstanding at September 30, 2011		2,480,440		$	12.30		375,791		$	13.13

          As of December 31, 2010, the unrecognized compensation cost related to outstanding unvested restricted stock was $13.9 million, which is expected to be recognized in expense through December 2013.  Grants of restricted stock and RSUs during the nine months ended September 30, 2011 had an estimated grant date fair value of $19.3 million.  The fair value of RSUs settled in cash was $2.8 million at September 30, 2011.  For the nine months ended September 30, 2011 and 2010, compensation expense of $10.2 million and $10.1 million, respectively, was recognized.  The total fair value of shares vested during the nine months ended September 30, 2011 was $13.4 million.