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Stock-based Compensation
 12 Months Ended
Dec. 31, 2011
Stock-Based Compensation [Abstract]  
Stock-Based Compenstation
Stock-Based Compensation

The Compensation Committee of the Company’s Board of Directors is responsible for the administration of the Company’s stock incentive plans.  In general, the plans provide for grants of restricted stock and stock options to be issued with a per-share price equal to the fair market value of a share of common stock on the date of grant.  Option terms are specified at each grant date, but generally are 10 years.  Options generally vest over a three to five year period.  At December 31, 2010, 50,329 shares were available for issuance under the Company's two stock incentive plans; the "2005 Plan" and the "2007 LTIP". In May, 2011, shareholders of the Company approved the 2011 Long-Term Incentive Plan (the "2011 LTIP"), which succeeded the 2005 Plan and the 2007 LTIP, and under which the maximum aggregate number of shares available for award total 3,000,000. As of December 31, 2011, 1,810,973 shares remain available for award under the 2011 LTIP.

Restricted Stock

The following table summarizes the restricted stock activity under the the Company's equity incentive plans :

 
Number
of
Shares
 
Weighted
Average
Fair Value
Per Share
Nonvested at January 1, 2009
64,287

 
$
1.65

Granted
62,189

 
$
19.01

Vested
(36,771
)
 
$
0.02

Forfeited/repurchased shares
—

 
$
—

Nonvested at December 31, 2009
89,705

 
$
1.65

Granted
82,248

 
$
13.86

Vested
(43,136
)
 
$
12.31

Forfeited/repurchased shares
(585
)
 
$
0.02

Nonvested at December 31, 2010
128,232

 
$
14.72

Granted
400,417

 
$
6.00

Vested
(63,299
)
 
$
1.99

Forfeited/repurchased shares
(12,783
)
 
$
15.24

Nonvested at December 31, 2011
452,567

 
$
7.09


Independent directors receive equity compensation each year in the form of grants with a fair value of $60,000, with vesting in six months from the date of grant.  In March 2010, certain named executive officers were granted a total of 3,539 shares with a grant date fair value of $17.68 per share, and in November 2010, the Compensation Committee of the Board of Directors approved grants of restricted stock, totaling 61,177 shares to its named executive officers, with vesting over a three year period.  The shares had a fair value on the date of grant of $13.69. In August, 2011, awards of restricted stock, totaling 360,417 shares, with a fair value of $6.00 per share, were granted to the Company's named executive officers with vesting over a five year period. On the same day, the Company's independent directors each received grants of 10,000 shares with a fair value of $6.00 per share, which vest over six months.
  
Stock Options

The following table summarizes the stock option activity under the Company's equity incentive plans:

 
Number
of
Shares
 
Weighted
Average
Exercise
Price
Per Share
 
Weighted
Average
Contractual
Life
(Years)
 
Aggregate
Intrinsic
Value
Outstanding at December 31, 2008
1,328,340

 
$
8.35

 
 

 
 

Granted
262,934

 
$
19.19

 
 

 
 

Exercised
(382,852
)
 
$
5.06

 
 

 
 

Forfeited
(22,102
)
 
$
11.27

 
 

 
 

Outstanding at December 31, 2009
1,186,320

 
$
11.76

 
 

 
 

Granted
217,552

 
$
13.78

 
 

 
 

Exercised
(82,510
)
 
$
8.11

 
 

 
 

Forfeited
(12,364
)
 
$
14.97

 
 

 
 

Outstanding at December 31, 2010
1,308,998

 
$
12.30

 
 

 
 

Granted
953,800

 
$
6.02

 
 

 
 

Exercised
(32,124
)
 
$
5.78

 
 

 
 

Forfeited
(101,768
)
 
$
15.68

 
 

 
 

Outstanding at December 31, 2011
2,128,906

 
$
9.42

 
 

 
 

Vested at December 31, 2011 and expected to vest
2,055,553

 
$
9.52

 
8.04

 
$
947

Exercisable at December 31, 2011
987,510

 
$
11.52

 
6.52

 
$
373


The Company calculates the fair value of each option on the date of grant using the Black-Scholes pricing model and the following weighted-average assumptions in each year:

 
2011
 
2010
 
2009
Weighted average grant-date fair value of options granted
$
4.03

 
$
6.58

 
$
8.57

Risk-free interest rate
1.5
%
 
1.5
%
 
1.3
%
Expected volatility
68.4
%
 
52.3
%
 
66.5
%
Expected term of options (in years)
7.5

 
5.4

 
3

Dividend yield
—
%
 
—
%
 
—
%

The risk-free interest rate is based on interest rates on U.S. Treasury zero-coupon issues that match the contractual terms of the stock option grants.  The expected term represents the period in which the Company’s equity awards are expected to be outstanding, which for 2011 and 2010 is based on the exercise history.
 
Volatility is calculated based on the Company’s historic stock price.  The Company does not anticipate paying dividends in the future.

Compensation expense related to equity award grants totaled $2.7 million, $2.5 million, and $1.6 million, for the years ended December 31, 2011, 2010 and 2009, respectively.

As of December 31, 2011, there was $4.6 million of unrecognized compensation cost, net of estimated forfeitures, related to the Company’s non-vested equity awards, which is expected to be recognized over a weighted average period of 3.9 years.

 
2011
 
2010
 
2009
Total intrinsic value of options exercised
$
143

 
$
799

 
$
5,042

Total fair value of shares vested
$
1,383

 
$
2,518

 
$
6,367