STOCK-BASED AWARDS

6 Months Ended

Jun. 30, 2013

STOCK-BASED AWARDS

STOCK-BASED AWARDS

7. STOCK-BASED AWARDS

We have equity incentive plans that provide for the grant to employees of stock-based awards, including stock options and restricted stock.

Stock-based compensation expense was as follows (in thousands):

	Three months ended June 30,				Six months ended June 30,
	2013		2012		2013		2012
Stock options	$	—	$	1	$	—	$	3
Restricted stock awards	816		829		1,568		1,640
Total stock-based compensation expense	$	816	$	830	$	1,568	$	1,643

Restricted stock awards

During the three and six months ended June 30, 2013, the Compensation Committee of the Board of Directors approved grants of 32,500 and 272,500 restricted stock awards, respectively, to our officers, board members and employees. The restricted stock awards vest over three years at 40% at the end of the first year, 30% at the end of the second year and 30% at the end of the third year and are subject to the employee’s continuing service to us. At June 30, 2013, there were 751,000 unvested restricted stock awards that remained outstanding.

The cost of restricted stock awards is determined using the fair value of our common stock on the date of the grant, and compensation expense is either recognized on a straight line basis over the three-year vesting schedule or on an accelerated schedule when vesting of restricted stock awards exceeds a straight-line basis. The cumulative amount of compensation expense recognized at any point in time is at least equal to the portion of the grant date fair value of the award that is vested at that date. The weighted average grant date fair value of restricted stock awards granted during the three months and six months ended June 30, 2013 was $25.45 and $15.96, respectively.

The following table summarizes restricted stock award activity during the six months ended June 30, 2013 (in thousands):

	Six months ended June 30, 2013
			Weighted Average
			Grant Date
	Units		Fair Value
Outstanding—beginning of year	1,003		$	8.81
Granted at fair value	273		15.96
Vested	(334	)	10.14
Forfeited	(191	)	9.41
Outstanding—end of period	751		$	10.66