Employee Benefit Plans

6 Months Ended

Jun. 30, 2011

Employee Benefit Plans [Abstract]

EMPLOYEE BENEFIT PLANS

NOTE 6 — EMPLOYEE BENEFIT PLANS

Restricted Stock and Stock Option Plans

Under the terms of the 2007 Stock Option Plan, options may not be granted at prices less than their fair market value on the date of the grant, nor for a term exceeding ten years. Vesting generally occurs in one-third increments on the third, fourth and fifth anniversaries of the date specified in the employees’ respective option agreements, subject to accelerated vesting under certain circumstances set forth in the option agreements. We expense the fair value of the stock option grants on a straight-line basis over the vesting period. A Black-Scholes option-pricing model is used to estimate the fair value of the stock options.

A summary of the status of stock option grants under the stock option plan for the six months ended June 30, 2011 and June 30, 2010 is as follows:

						Weighted
						Average
				Weighted-		Remaining		Aggregate
				Average		Contractual		Intrinsic
	Options			Exercise Price		Term		Value
						(years)		(thousands)
Outstanding at December 31, 2009		3,976,887		$	9.66
Granted		166,829			11.09
Exercised		—			—
Forfeited		(61,009	)	$	4.81
Expired		—			—
Outstanding at June 30, 2010		4,082,707		$	9.75		8.2	$	8,497
Outstanding at December 31, 2010		3,937,122		$	9.95
Granted		266,312			7.51
Exercised		(635	)		4.81
Forfeited		(143,456	)		9.69
Expired		(5,084	)		4.81
Outstanding at June 30, 2011		4,054,259		$	9.81		7.4	$	2,927

Additional information regarding stock options outstanding at June 30, 2011 is provided in the following table:

					Weighted
			Weighted		Average
			Average		Remaining		Aggregate
			Exercise		Contractual		Intrinsic
	Options		Price		Term		Value
Stock Options					(years)		(thousands)
At June 30, 2011:
Options exercisable		973,111	$	8.43		6.5	$	1,343
Options outstanding and vested		973,111	$	8.43		6.5	$	1,343
Options outstanding, vested and expected to vest		3,908,769	$	9.84		7.3	$	2,787

Under the terms of the 2007 Restricted Stock Plan, restricted stock may be granted at the direction of our Board of Directors and vesting generally occurs in one-fourth increments on the second, third, fourth and fifth anniversaries of the date specified in the employees’ respective restricted stock agreements, subject to accelerated vesting under certain circumstances set forth in the restricted stock agreements. We expense the fair value of the restricted stock grants on a straight-line basis over the vesting period.

The following table summarizes restricted stock activity under the restricted stock plan during the six months ended June 30, 2011 and June 30, 2010:

				Weighted Average
				Grant-Date Fair
	Shares			Value
Outstanding at December 31, 2009		227,885		$	5.57
Vested		(30,191	)		4.71
Forfeited		(6,193	)		4.71
Outstanding at June 30, 2010		191,501		$	5.73
Outstanding at December 31, 2010		155,465		$	5.97
Vested		(28,584	)		4.71
Forfeited		(4,765	)		4.71
Outstanding at June 30, 2011		122,116		$	6.32

Restricted Common Units: Certain of our key employees received restricted common units of our parent company, PVF Holdings LLC, that vest over a three-to-five-year requisite service period. At June 30, 2011, all of the restricted common units were either vested or forfeited. Prior to full vesting or forfeiture, the expense was being recognized on a straight-line basis over the vesting period.

Profits Units: Certain of our key employees received profits units in PVF Holdings LLC that vest over a five-year requisite service period. The holders of these units are entitled to their pro rata share of any distributions made by PVF Holdings LLC once common unit holders have received a return of all capital contributed to PVF Holdings LLC (for purposes of the limited liability company agreement of PVF Holdings LLC). Expense is being recognized on a straight-line basis over the vesting period.

Recognized compensation expense under our equity-based compensation plans is set forth in the table below (in thousands):

	Three Months Ended				Six Months Ended
	June 30,		June 30,		June 30,		June 30,
	2011		2010		2011		2010
Equity-based compensation expense:
Stock options	$	683	$	752	$	1,705	$	1,536
Restricted stock		62		70		170		147
Restricted common units		—		2		—		(337	)
Profit units		214		368		567		820
Total equity-based compensation expense	$	959	$	1,192	$	2,442	$	2,166

Unrecognized compensation expense under our equity-based compensation plans is set forth in the table below (in thousands):

	June 30,		June 30,
	2011		2010
Unrecognized equity-based compensation expense:
Stock options	$	7,924	$	8,713
Restricted stock		418		801
Profit units		1,160		3,354
Total unrecognized equity-based compensation expense	$	9,502	$	12,868