Stock-Based Compensation

9 Months Ended

Sep. 30, 2013

Stock Based Compensation [Abstract]

Stock-Based Compensation

9. STOCK-BASED COMPENSATION

Options granted generally vest over four years with the first year vesting on a cliff basis followed by monthly vesting for the remaining three years. Restricted stock awards (“RSA”) and restricted stock units (“RSU”) granted generally vest over three or four years depending on the terms of the grant. Stock-based compensation expense is recognized on a straight-line basis over the applicable vesting period. During the three months ended September 30, 2013 and 2012, $3.0 million and $2.8 million, respectively, of stock-based compensation expense was recorded,  of which  $0.5 million and$0.0 million, respectively, was related to the implementation of our ERP system and capitalized to intangible assets. During the nine months ended September 30, 2013 and 2012,  $10.5 million and $9.0 million, respectively, of stock-based compensation expense was recorded, of which $0.5 million and $0.0 million, respectively, was related to the implementation of our ERP system and capitalized to intangible assets.

Stock Options

The following table summarizes the stock option activity for the three and nine months ended September 30, 2013 and 2012:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
Options	Options		Weighted Average Exercise Price	Options		Weighted Average Exercise Price	Options		Weighted Average Exercise Price	Options		Weighted Average Exercise Price
Outstanding at June 30, 2013 and 2012, respectively, and December 31, 2012 and 2011, respectively	2,370,085	$	13.42	2,974,613	$	12.48	2,621,686	$	13.03	3,331,031	$	11.91
Granted	10,000		13.52	69,500		17.19	167,000		15.75	183,400		17.18
Exercised	(87,730)		6.59	(257,570)		7.10	(291,820)		6.91	(543,014)		6.18
Forfeited or expired	(63,089)		20.18	(55,886)		17.13	(267,600)		17.59	(240,760)		16.42
Outstanding at September 30	2,229,266	$	13.50	2,730,657	$	13.01	2,229,266	$	13.50	2,730,657	$	13.01

Restricted Stock Awards and Units

From time to time, we grant RSAs and RSUs to our employees. Unvested RSAs have the same rights as those of common shares including voting rights and non-forfeitable dividend rights. However, ownership of unvested RSAs cannot be transferred until they are vested. An unvested RSU is a contractual right to receive a share of common stock only upon its vesting. RSUs have dividend equivalent rights which accrue over the term of the award and are paid if and when the RSUs vest, but they have no voting rights.

During the three months ended September 30, 2013 and 2012, the Board of Directors approved an immaterial amount of RSU grants. During the nine months ended September 30, 2013 and 2012, the Board of Directors approved RSU grants of  1.6 million and 0.9 million, respectively, of which  0.7 million and 0.4 million, respectively, were granted to certain executives as part of our performance incentive program. Half of these performance incentive program grants vest ratably on each of the first three anniversaries of the grant date; 25% will vest upon achievement of certain performance metrics; and the remaining 25% will vest one year from the date upon which certain performance metrics are achieved. If actual performance metrics exceed the targeted performance metrics by a predetermined amount, the executives are eligible to receive up to 200% of the performance-based portion of their award. During the three months ended September 30, 2013 and 2012, $2.2 million and $1.9 million, respectively, of stock-based compensation expense related to RSUs were recorded. During the nine months ended September 30, 2013 and 2012, $8.1 million and $5.1 million, respectively, of stock-based compensation expense related to RSUs were recorded.

The following table summarizes the RSA activity for the three and nine months ended September 30, 2013 and 2012:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
Restricted Stock Awards	Shares		Weighted Average Grant Date Fair Value	Shares		Weighted Average Grant Date Fair Value	Shares		Weighted Average Grant Date Fair Value	Shares		Weighted Average Grant Date Fair Value
Outstanding at June 30, 2013 and 2012, respectively, and December 31, 2012 and 2011, respectively	288,087	$	13.32	383,410	$	13.53	355,509	$	13.37	571,175	$	11.87
Granted	-		-	-		-	21,590		16.56	18,813		16.48
Vested	(5,396)		16.56	(7,600)		16.77	(83,608)		14.70	(187,078)		9.04
Forfeited or expired	(15,000)		14.34	(5,100)		12.51	(25,800)		13.57	(32,200)		12.51
Outstanding at September 30	267,691	$	13.20	370,710	$	13.47	267,691	$	13.20	370,710	$	13.47

The following table summarizes the RSU activity for the three and nine months ended September 30, 2013 and 2012:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
Restricted Stock Units	Units		Weighted Average Grant Date Fair Value	Units		Weighted Average Grant Date Fair Value	Units		Weighted Average Grant Date Fair Value	Units		Weighted Average Grant Date Fair Value
Outstanding at June 30, 2013 and 2012, respectively, and December 31, 2012 and 2011, respectively	2,456,014	$	16.72	1,465,715	$	21.00	1,414,661	$	20.61	711,980	$	23.43
Granted	26,500		13.52	59,500		17.19	1,589,614		15.01	948,059		19.28
Vested	(8,231)		24.17	(7,984)		26.81	(295,215)		22.32	(113,225)		24.65
Forfeited or expired	(90,285)		18.08	(29,996)		19.19	(325,062)		21.10	(59,579)		20.22
Outstanding at September 30	2,383,998	$	16.59	1,487,235	$	20.86	2,383,998	$	16.59	1,487,235	$	20.86