Share-based Compensation (Tables)

12 Months Ended

Dec. 31, 2013

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of Share-based Compensation Expense

The following table presents the amounts for share-based compensation expense incurred by ARI, all related to the Company’s SARs awards, and the corresponding line items on the consolidated statements of operations that they are recorded within:

	Years Ended December 31,
	2013		2012		2011
	(in thousands)
Share-based compensation expense:
Cost of revenues: manufacturing	$	909	$	899	$	697
Cost of revenues: railcar services	234		171		105
Selling, general and administrative	3,986		3,598		2,736
Total share-based compensation expense	$	5,129	$	4,668	$	3,538

Analysis of SARs outstanding

The following table provides an analysis of SARs granted in 2012, 2011, 2010, 2009 and 2008 and assumptions that were used as of December 31, 2013 in the Black-Scholes option-pricing model:

	Grant Date
	2/24/2012	5/9/2011	3/31/2010 & 5/14/2010	3/3/2009	4/28/2008
SARs outstanding as of December 31, 2013	111,694	76,408	12,832	5,800	500
Vested & Exercisable	5,767	14,792	12,832	5,800	500
Vesting period	3 years	3 years	3 years	4 years	4 years
Expiration Dates	2/24/2019	5/9/2018	3/31/2017 & 5/14/2017	3/3/2016	4/28/2015
Weighted average exercise price	$29.31	$24.45	$12.95	$6.71	$20.88
Expected volatility range	52.0% - 52.5%	43.3% - 52.0%	42.5%	39.2%	34.3%
Expected life range (in years)	2.5 - 3.1	2.2 - 2.3	1.6 - 1.7	1.1	0.7
Risk-free interest rate range	0.8%	0.4%	0.4%	0.1%	0.1%
Expected Dividend yield	2.2%	2.2%	2.2%	2.2%	2.2%
Forfeiture Rate on unvested SARs	2.0%	2.0%	N/A	N/A	N/A

Summary of SARs activity under the 2005 Plan

The following is a summary of SARs activity under the 2005 Plan:

	Stock Appreciation Rights (SARs)		Weighted Average Exercise Price	Weighted Average Remaining Contractual Life	Weighted Average Fair Value of SARs	Aggregate Intrinsic Value ($000)
Outstanding at January 1, 2011	711,353		$12.68
Granted	242,041		$24.45
Cancelled/Forfeited (1)	(22,720	)
Exercised	(124,764	)
Outstanding at December 31, 2011	805,910		$16.35
Granted	204,500		$29.31
Cancelled/Forfeited	(22,360	)
Exercised	(390,658	)
Outstanding at December 31, 2012	597,392
Granted	—
Cancelled/Forfeited	(41,114	)
Exercised	(349,044	)
Outstanding at December 31, 2013	207,234		$25.85	56 months	$22.06	$4,123
Exercisable at December 31, 2013	39,691		$18.80	49 months	$27.04	$1,070

(1) Of the SARs granted in 2008, 13,123 were canceled in 2011 due to the closing price of the Company’s common stock not achieving a specified price target for twenty trading days during any sixty day trading day period.