Stock-Based Compensation

3 Months Ended

Mar. 31, 2012

Stock-Based Compensation [Abstract]

Stock-Based Compensation

(7)   Stock-Based Compensation

Stock Options

There was no activity in the Company's stock option plan during the three months ended March 31, 2012. As of March 31, 2012, the Company had 1,192,680 outstanding shares of common stock subject to stock options granted to officers, employees and independent directors with a weighted average exercise price of $12.89 per share. The stock options granted to officers and certain employees have a vesting period of four years while stock options granted annually to independent members of the Company's board of directors have a vesting period of one year. All stock options have a term of 10 years from date of grant as long as the grantee remains an employee or director of the Company.

The fair value of the stock options granted by the Company was determined using the Black-Scholes-Merton pricing model and is amortized as compensation expense on a straight-line basis over their vesting periods. The Company recorded stock-based compensation expense of approximately $0.3 million for each three-month period ended March 31, 2012 and 2011. As of March 31, 2012, the remaining unamortized stock-based compensation cost relating to stock options granted to the Company's officers, independent directors and employees was approximately $2.1 million, which is to be recognized over a weighted average remaining vesting period of 2.7 years. The weighted average remaining term of the stock options outstanding as of March 31, 2012 is approximately 6.8 years. The aggregate intrinsic value of all options outstanding as of March 31, 2012 was approximately $7.6 million based on the closing price of the Company's common stock of $18.18 per share.

Compensation expense relating to stock options is recorded as a component of marketing, general and administrative expenses in the Company's consolidated statements of income.