Stock-Based Compensation Plans

12 Months Ended

Dec. 31, 2011

Stock-Based Compensation Plans [Abstract]

Stock-Based Compensation Plans

10.    Stock-Based Compensation Plans

The Company has three stock incentive plans which provide for the grant of stock options, stock appreciation rights, restricted stock, performance shares, performance units, or other stock-based awards as incentives and rewards to encourage employees, consultants and non-employee directors to participate in the long-term success of the Company. As of December 31, 2011, there were 3,902,269 shares available for grant under the stock incentive plans.

Total stock-based compensation expense was as follows:

	Year Ended December 31,
	2011		2010		2009
	(In thousands)
Employee:
Restricted stock and performance shares	$	5,856	$	6,588	$	5,040
Stock options		324		1,728		2,858
		6,180		8,316		7,898
Non-employee directors:
Restricted stock		679		570		373
Stock options		—		83		143
		679		653		516
Total stock-based compensation	$	6,859	$	8,969	$	8,414

The Company records stock-based compensation expense for employees in employee compensation and benefits and for non-employee directors in general and administrative expenses in the Consolidated Statements of Operations.

Stock Options

The exercise price of each option granted is equal to the market price of the Company’s common stock on the date of grant. Generally, option grants have provided for vesting over a three or five-year period. Options expire ten years from the date of grant. The fair value of each option award is estimated on the date of grant using the Black-Scholes option-pricing model. The determination of fair value of share-based payment awards on the date of grant using an option-pricing model is affected by the Company’s stock price as well as assumptions regarding a number of highly complex and subjective variables, including the expected stock price volatility over the term of the awards, the risk-free interest rate and the expected term. Expected volatilities are based on historical volatility of the Company’s stock and a peer group. The risk-free interest rate is based on U.S. Treasury securities with a maturity value approximating the expected term of the option. The expected term represents the period of time that options granted are expected to be outstanding based on actual and projected employee stock option exercise behavior.

The weighted-average fair value for options granted during 2011, 2010 and 2009 was $11.29, $5.45 and $4.60, respectively. The following table represents the assumptions used for the Black-Scholes option-pricing model to determine the per share weighted-average fair value for options granted for the three years ended December 31, 2011:

	2011			2010			2009
Expected life (years)		9.9			5.0			5.4
Risk-free interest rate		3.3	%		2.2	%		2.4	%
Expected volatility		48.0	%		50.0	%		49.8	%
Expected dividend yield		1.3	%		2.0	%		0.0	%

The following table reports stock option activity during the three years ended December 31, 2011 and the intrinsic value as of December 31, 2011:

	Number of Shares			Weighted-Average Exercise Price		Remaining Contractual Term		Intrinsic Value
	(In thousands)
Outstanding at December 31, 2008		5,287,175		$	9.17
Granted		140,239		$	9.66
Canceled		(199,932	)	$	11.07
Exercised		(60,924	)	$	9.54
Outstanding at December 31, 2009		5,166,558		$	9.10
Granted		8,239		$	14.10
Canceled		(12,575	)	$	13.85
Exercised		(758,660	)	$	9.17
Outstanding at December 31, 2010		4,403,562		$	9.09		4.4
Granted		340,771		$	21.60
Canceled		(211,323	)	$	16.16
Exercised		(1,605,273	)	$	10.21			$	24,192
Outstanding at December 31, 2011		2,927,737		$	9.42		8.1	$	60,589
Exercisable at December 31, 2011		2,679,941		$	8.36		8.1	$	58,287

The intrinsic value is the amount by which the closing price of the Company’s common stock on December 31, 2011 of $30.11 or the price on the day of exercise exceeds the exercise price of the stock options multiplied by the number of shares. As of December 31, 2011, there was $2.3 million of total unrecognized compensation cost related to non-vested stock options. That cost is expected to be recognized over a weighted-average period of 2.3 years.

Restricted Stock and Performance Shares

Shares of restricted stock generally vest over a period of three years. Compensation expense is measured at the grant date and recognized ratably over the vesting period. Performance share awards are granted to certain senior managers. Each performance share award is earned or forfeited based on the level of achievement by the Company of pre-tax operating income on a per share basis before performance share and cash bonus expense. The pay-out ranges from zero to 150% of the performance share award. For each performance share earned, a participant is awarded an equal number of shares of restricted stock. Any restricted stock awarded to a participant vests and ceases to be restricted stock in two equal installments on each of the second and third anniversaries of the date of grant of the applicable performance share award. Compensation expense for performance shares is measured at the grant date and recognized on a graded basis over the vesting period. The pay-out achievement was 146%, 150% and 150% of the performance award for 2011, 2010 and 2009, respectively. The following table reports performance share activity for the three years ended December 31, 2011:

Performance year	2011		2010		2009
Share pay-out at plan, net of forfeitures of 14,563 for 2011		63,102		87,035		137,778
Actual share pay-out in following year		94,653		130,552		206,664
Fair value per share on grant date	$	21.56	$	14.29	$	7.94

The following table reports restricted stock and performance share activity during the three years ended December 31, 2011:

	Number of Restricted Shares			Weighted- Average Grant Date Fair Value
Outstanding at December 31, 2008		647,994		$	12.14
Granted		659,520
Canceled		(500	)
Vested		(272,875	)
Outstanding at December 31, 2009		1,034,139		$	9.64
Granted		549,264
Performance share pay-out		206,664
Canceled		(71,152	)
Vested		(474,051	)
Outstanding at December 31, 2010		1,244,864		$	11.23
Granted		435,548
Performance share pay-out		130,552
Canceled		(279,081	)
Vested		(574,172	)
Outstanding at December 31, 2011		957,711		$	15.69

As of December 31, 2011, there was $9.9 million of total unrecognized compensation expense related to non-vested restricted stock and performance shares. That cost is expected to be recognized over a weighted-average period of 1.7 years.