Stock-based Compensation

6 Months Ended

Jun. 30, 2012

Stock-based Compensation [Abstract]

Stock-based Compensation

8. Stock-based Compensation

Equity Incentive Plans

In 1999, the Company adopted the 1999 Stock Incentive Plan (the “1999 Plan”). The 1999 Plan provided for the grant of incentive stock options, nonqualified stock options, restricted stock awards and stock appreciation rights. The 1999 Plan terminated in June 2009 whereby no new options or awards are permitted to be granted. In April 2009, the Company adopted the 2009 Equity Incentive Plan. This plan provides for the grant of incentive stock options, nonqualified stock options, restricted stock awards, restricted stock units (“RSUs”) and stock appreciation rights. In June 2010, in connection with the Company’s initial public offering (“IPO”), the 2009 Equity Incentive Plan was amended and restated to provide for, among other things, annual increases in the share reserve (as amended and restated, the “2009 Plan”). At the same time, an additional 333,333 shares of common stock were added to the share reserve. On January 1, 2011 and 2012, 1,145,860 and 1,219,787 shares, respectively, were added to the 2009 Plan. At June 30, 2012, the Company had 1,456,383 shares of common stock available for issuance under the 2009 Plan.

Stock-based compensation expense recognized by the Company was as follows (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2012		2011		2012		2011
Stock options	$	1,673	$	433	$	3,062	$	934
Restricted stock awards		—		19		—		42
Restricted stock units		2,108		1,449		3,910		2,027
Total recognized stock-based compensation expense	$	3,781	$	1,901	$	6,972	$	3,003

Stock Options

The following table presents summary information related to stock options:

	Number of Options Outstanding			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (years)		Aggregate Intrinsic Value
Balance, December 31, 2011		1,682,911		$	11.82
Granted		258,600
Exercised		(376,211	)
Forfeited		(78,958	)
Balance, June 30, 2012		1,486,342		$	17.25		7.91	$	22,443,987
Vested at June 30, 2012		714,097		$	4.76		6.90	$	17,522,120
Exercisable at June 30, 2012		752,556		$	4.64		6.84	$	18,295,189

The Company granted 258,600 stock options during the six months ended June 30, 2012 and 102,700 stock options during the six months ended June 30, 2011. For the six months ended June 30, 2012 and June 30, 2011, the intrinsic value of stock options exercised was $12.8 million and $53.2 million, respectively, and cash received from stock options exercised was $1.1 million and $3.2 million, respectively. At June 30, 2012, unrecognized stock-based compensation expense related to unvested options was $7.2 million, which is scheduled to be recognized over a weighted average period of 1.44 years.

Restricted Stock Units

The following table presents a summary of activity for RSUs:

	Number  of RSUs			Weighted Average Grant Date Fair Value
Balance, December 31, 2011		367,315		$	27.17
Granted		399,262			33.87
Vested		(150,802	)		23.04
Forfeited		(39,608	)		34.71
Balance, June 30, 2012		576,167		$	32.49

During the six months ended June 30, 2012, the Company granted 316,025 RSUs to certain officers and employees, which vest over four years following the date of grant, and 16,003 RSUs to certain officers that were fully vested at the date of grant. In addition, the Company granted 12,234 RSUs to certain directors that vest quarterly through December 31, 2012. During the six months ended June 30, 2012, the Company granted 55,000 Performance Stock Units to certain officers, which vest on December 31, 2013, subject to the recipients’ satisfying the performance criteria of the awards. During the six months ended June 30, 2011, the Company granted an aggregate of 104,000 RSUs to certain officers and 86,950 RSUs to certain employees, which vest over four years following the date of grant. In addition, the Company granted 7,153 RSUs to certain directors that vested quarterly through December 31, 2011. At June 30, 2012, unrecognized stock-based compensation expense related to unvested RSUs was $8.9 million, which is scheduled to be recognized over a weighted average period of 1.57 years.

Tax Benefits

Upon adoption of the FASB’s guidance on stock-based compensation, the Company elected the alternative transition method (short cut method) provided for calculating the tax effects of stock-based compensation. The alternative transition method includes simplified methods to establish the beginning balance of the additional paid in capital (“APIC”) pool related to the tax effects of employee stock-based compensation, and to determine the subsequent impact on the APIC pool and consolidated statements of cash flows related to the tax effect of employee stock-based compensation awards that are outstanding upon adoption.

The Company applies a with-and-without approach in determining its intra-period allocation of tax expense or benefit attributable to stock-based compensation deductions. Tax deductions in excess of previously recorded benefits (windfalls) included in net operating loss carryforwards but not reflected in deferred tax assets were $70.7 million and $60.2 million at June 30, 2012 and December 31, 2011, respectively.