Share Based Compensation

9 Months Ended

Sep. 30, 2011

Share Based Compensation [Abstract]

SHARE BASED COMPENSATION

NOTE 10 —SHARE BASED COMPENSATION

We recognized share-based compensation expense of $7.9 million and $19.9 million for the three and nine months ended September 30, 2011, and we recognized $1.0 million and $5.2 million for the three and nine months ended September 30, 2010.

A summary of common stock option and stock appreciation rights activity for the nine months ended September 30, 2011 is presented below:

				Weighted-
				Average
	Shares			Exercise Price
Outstanding at beginning of period		12,779,282		$	2.65
Granted		5,492,792		$	7.82
Exercised		(5,284,250	)	$	0.89
Cancelled		(260,575	)	$	2.73
Outstanding at end of period		12,727,249		$	5.61
Exercisable at end of period		5,098,125		$	3.97

A summary of the Company’s non-vested common stock options as of September 30, 2011 is presented below.

Non-vested Common Stock Options	Shares
Non-vested at beginning of period		5,215,532
Granted		5,492,792
Vested		(2,820,125	)
Cancelled		(259,075	)
Non-vested at end of period		7,629,124

Total unrecognized compensation cost related to the non-vested common stock options was $14.2 million and $2.1 million as of September 30, 2011 and 2010, respectively. The cost at September 30, 2011, is expected to be recognized over a weighted-average period of 1.53 years. At September 30, 2011, the aggregate intrinsic value for common stock options was $5.3 million and the weighted average remaining contract life was 6.40 years.

The assumptions used in the fair value method calculation for the nine months ended September 30, 2011 are disclosed in the following table:

	Nine Months Ended
	September 30, 2011 (1)
Weighted average value per common stock option granted during the period (2)	$	4.33
Assumptions (3):
Weighted average stock price volatility		64.46	%
Weighted average risk free rate of return		2.06	%
Weighted average expected term	6.42 years

(1)	Our estimated future forfeiture rate is zero.
(2)	Calculated using the Black-Scholes fair value based method for service and performance based grants and the Lattice Model for market based grants.
(3)	We have not paid dividends on our common stock.

In addition, the Company has issued restricted stock to certain employees and directors. A summary of the Company’s non-vested restricted shares as of September 30, 2011 is presented below:

				Weighted
				Average Price
Non-vested Shares	Shares			Per Share
Non-vested at December 31, 2010		300,074		$	4.43
Granted		13,319			7.51
Vested		(93,319	)		2.38
Forfeited		—			—
Non-vested at September 30, 2011		220,074		$	5.48

Total unrecognized compensation cost related to the above non-vested, restricted shares amounted to $870,000 and $56,000 as of September 30, 2011 and 2010, respectively. The cost at September 30, 2011, is expected to be recognized over a weighted-average period of 2.14 years.