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Quicksilver Stockholders' Equity
 9 Months Ended
Sep. 30, 2013
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract]  
Quicksilver Stockholders' Equity
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, 2013 and December 31, 2012, we had 177.1 million and 173.1 million shares of common stock outstanding, respectively.
On May 15, 2013, our stockholders approved an amendment to the 2006 Equity Plan, which increased the shares available for issuance under the plan by 12 million shares. Note 17 to the consolidated financial statements in our 2012 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 2013 with an estimated fair value of $1.6 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:
 
2013
 
2012
Weighted avg grant date fair value
$1.05
 
$4.21
Weighted avg risk-free interest rate
1.31%
 
1.14%
Expected life
4.9 years
 
6.0 years
Wtd avg volatility
69.0%
 
68.2%
Expected dividends
—
 
—


The following table summarizes our stock option activity for the nine months ended September 30, 2013:
 
Shares
 
Wtd Avg
Exercise
Price
 
Wtd Avg
Remaining
Contractual Life
 
Aggregate
Intrinsic Value
 
 
 
 
 
(In years)
 
(In thousands)
Outstanding at January 1, 2013
4,979,980

 
$
10.23

 
 
 
 
Granted
2,037,467

 
1.95

 
 
 
 
Expired
(151,867
)
 
7.76

 
 
 
 
Outstanding at September 30, 2013
6,865,580

 
$
7.83

 
7.1
 
$
—

Exercisable at September 30, 2013
4,670,679

 
$
9.28

 
6.2
 
$
—


As of September 30, 2013, we estimate that a total of 6.4 million stock options will become vested including those options already exercisable. As of September 30, 2013, the unrecognized compensation cost related to outstanding unvested stock options was $2.7 million, which is expected to be recognized in expense through June 2015. Compensation expense related to stock options of $3.2 million and $5.9 million was recognized for each of the nine months ended September 30, 2013 and 2012, respectively.
Restricted Stock
The following table summarizes our restricted stock and stock unit activity for the nine months ended September 30, 2013:
 
Payable in shares
 
Payable in cash
 
Shares
 
Wtd Avg
Grant Date
Fair Value
 
Shares
 
Wtd Avg
Grant Date
Fair Value
Outstanding at January 1, 2013
3,099,135

 
$
8.48

 
678,217

 
$
7.71

Granted
6,102,133

 
2.74

 
1,468,695

 
2.83

Vested
(2,018,457
)
 
7.57

 
(284,406
)
 
8.51

Forfeited
(1,303,113
)
 
3.63

 
(298,138
)
 
3.88

Outstanding at September 30, 2013
5,879,698

 
$
3.91

 
1,564,368

 
$
3.72


As of September 30, 2013, the unrecognized compensation cost related to outstanding unvested restricted stock was $15.6 million, which is expected to be recognized in expense through March 2016. Grants of restricted stock and RSUs during the nine months ended September 30, 2013 had an estimated grant date fair value of $20.9 million. The fair value of outstanding RSUs to be settled in cash is $3.1 million at September 30, 2013. For the nine months ended September 30, 2013 and 2012, compensation expense related to restricted stock and RSUs of $12.2 million and $11.9 million, respectively, was recognized. The total fair value of shares vested during the nine months ended September 30, 2013 was $5.6 million.
In the second quarter of 2013, the Company recognized $3.6 million in stock-based compensation to correct for assumptions on forfeitures and vesting for retirement eligible and imminently retirement eligible individuals, including $2.2 million which pertains to periods before 2013.