Stock-Based Compensation

6 Months Ended

Jun. 30, 2011

Stock-Based Compensation

Stock-Based Compensation

7.             Stock-Based Compensation

The Company has elected to use the BSM option-pricing model, which incorporates various assumptions including volatility, expected life, and interest rates.  The expected volatility is based on the historical volatility of the Company’s common stock over the most recent period commensurate with the estimated expected life of the Company’s stock options, adjusted for the impact of unusual fluctuations not reasonably expected to recur and other relevant factors including implied volatility in market traded options on the Company’s common stock. The expected life of an award is based on historical experience and on the terms and conditions of the stock awards granted to employees.

The weighted average assumptions used for the three and six month periods ended June 30, 2011 and 2010 and the resulting estimates of weighted-average fair value per share of stock options granted during those periods are as follows:

	Three months ended June 30,						Six months ended June 30,
	2011			2010			2011			2010
Expected life	75 months			75 months			75 months			75 months
Stock volatility	35.00		%	45.00		%	35.00		%	45.00		%
Risk free interest rate	2.50		%	2.33		%	2.50		%	2.61		%
Dividend yield	0.00		%	0.00		%	0.00		%	0.00		%
Fair value per share	$	3.98		$	4.43		$	3.76		$	3.58