Stock Compensation

9 Months Ended

Sep. 30, 2013

Stock Compensation

Stock Compensation

10.  Stock Compensation

The Company has an equity incentive plan.  The Compensation Committee of the Company’s Board of Directors may grant awards under the plan in the form of incentive stock options, non-qualified stock options, stock appreciation rights, restricted stock, restricted stock units and other stock-based awards.  The maximum number of shares issuable under the new equity incentive plan is 1,400,000 shares.  All grants under the equity incentive plan will be issued to acquire shares at the fair value on date of grant.

As of September 30, 2013, all awards were restricted stock units.  Activity with respect to outstanding restricted stock units for the nine months ended September 30, 2013 and 2012 was as follows:

			Weighted-
			Average
			Grant-Date
	Shares		Fair Value
2013
Nonvested at January 1, 2013	223,224		$	15
Granted	181,330		20
Vested	(67,233	)	17
Forfeited	(22,918	)	17
Nonvested at September 30, 2013	314,403		$	17
2012
Nonvested at January 1, 2012	248,951		$	17
Granted	118,647		16
Vested	(59,264	)	26
Forfeited	(19,205	)	26
Nonvested at September 30, 2012	289,129		$	15

The Company recognized compensation expense of $0.7 million and $1.9 million for the three and nine months ended September 30, 2013, respectively.  The Company recognized compensation expense of $0.5 million and $1.3 million for the three and nine months ended September 30, 2012, respectively.  The fair value as of the vesting date for the restricted stock units that vested during the nine months ended September 30, 2013 and 2012 was $1.3 million and $1.0 million, respectively.  Upon vesting, unit holders have the option to net share-settle to cover the required withholding tax and the remaining amount is converted into an equivalent number of shares of common stock.   The total shares withheld were 20,692 and 3,160 for the nine months ended September 30, 2013 and 2012, respectively, and were based on the value of the restricted stock units as determined by the Company’s closing stock price.  Total payments for the employees’ tax obligations to the tax authorities were $0.4 million and less than $0.1 million for the nine months ended September 30, 2013 and 2012, respectively.  Other than reimbursements for tax withholdings, there was no cash received under all share-based arrangements.