Stock-based Compensation

3 Months Ended

Mar. 31, 2012

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-based Compensation

Stock-based Compensation

The fair value of each stock option grant was established at the date of grant using the Black-Scholes option pricing model. The Black-Scholes model used the following weighted-average assumptions for options granted during the three months endedMarch 31, 2012 and 2011, respectively: risk-free interest rates of 1.7% and 3.1%; volatility factors of the expected market price of the Company's common stock of .48 and .46; assumed forfeiture rates of 8.73% and 1.52%; weighted-average expected lives of the options of 7.5 years for both March 31, 2012 and March 31, 2011; and no cash dividends. Using these assumptions, the weighted-average fair value of options granted for the three months endedMarch 31, 2012 and 2011 was $5.99 and $6.44 per option, respectively. In the first three months of 2012, the Company granted 235,225 options to purchase shares of the Company's stock at exercise prices ranging from $10.86 to $11.77 per share.

The Company recorded stock-based compensation expense of approximately $96,000 and $193,000 during the three months ended March 31, 2012 and March 31, 2011, respectively. In accordance with FASB guidance on stock-based payments, during the first quarters of 2012 and 2011 the Company reversed $230,000 and $165,000, respectively, of expense that had been recorded in prior periods as a result of the reconcilement of projected option forfeitures to actual option forfeitures for all stock options granted during the first quarters of 2008 and 2007, respectively.