Stock-Based Compensation

3 Months Ended

Mar. 31, 2012

Stock-Based Compensation

Stock-Based Compensation

(17) Stock-Based Compensation

        On March 1, 2012, certain of the non-employee directors of the Company elected to convert a portion of their quarterly fees into restricted stock units ("RSUs") based on the Company's common stock price on that day. These RSUs are fully vested because they relate to services already rendered by the non-employee directors. The same non-employee directors received additional RSUs as matching contributions by the Company equal to 25% of the converted RSUs. The matching RSUs vest on the third anniversary of the grant date.

        On February 28, 2012, the Company granted RSUs and performance-based restricted stock units ("PBRSUs") to the Company's named executive officers and certain employees under the 2010 Equity and Performance Incentive Plan. The RSUs vest on the third anniversary of the grant date. The PBRSUs will vest with respect to between 0% and 150% on the basis of the achievement of certain management objectives measured by specified levels of total shareholder return relative to a defined index group over the performance period from January 1, 2012 through December 31, 2014, or upon the occurrence of certain change of control or termination events.

        On February 2, 2012, certain named executive officers and other employees of the Company elected to convert a portion of their 2011 annual cash bonuses into RSUs. These RSUs are fully vested because they relate to services already rendered by the grantees. The conversion of the 2011 annual bonuses into RSUs resulted into an increase in Additional Paid-In Capital of $0.6 million. The same named executive officers and other employees received additional RSUs as matching contribution by the Company equal to 25% of the converted RSUs. The matching RSUs vest on the third anniversary of the grant date.

        The grant-date fair value of RSUs is determined using the Company's common stock price on the date of grant and is recognized as stock-based compensation expense on a straight-line basis over the three-year vesting period for the awards that are expected to vest.

        The grant-date fair value of PBRSUs is determined using a lattice approach that incorporates a Monte Carlo simulation model. The compensation cost associated with the PBRSUs is recognized straight-line over the performance period for the awards that are expected to vest, even if the market conditions are never satisfied.

        The following tables summarize the activity related to stock-based awards during the first quarter of 2012:

PBRSUs	Number of Shares		Weighted Average Grant-Date Fair Value
Unvested at January 1, 2012		—		—
Granted		45,553	$	30.33
Forfeited		—		—
Vested		—		—
Unvested at March 31, 2012		45,553	$	30.33

RSUs	Number of Shares			Weighted Average Grant-Date Fair Value
Unvested at January 1, 2012		78,544		$	56.55
Granted		188,844		$	26.43
Forfeited		—			—
Vested*		(20,683	)	$	29.06
Unvested at March 31, 2012		246,705		$	35.80

*

Represents deferral and conversion of a portion of fees payable to certain non-employee directors of the Company, and deferral and conversion of a portion of the 2011 annual cash bonuses paid to certain executive officers and other employees of the Company.

RSAs	Number of Shares			Weighted Average Grant-Date Fair Value
Unvested at January 1, 2012		48,924		$	40.20
Granted		—			—
Forfeited		(221	)	$	48.87
Vested		—			—
Unvested at March 31, 2012		48,703		$	40.16

        The following tables summarize the activity related to stock options during the first quarter of 2012:

	March 31, 2012
Stock Options	Number of Shares		Weighted Average Exercise Price
Outstanding at January 1, 2012		52,819	$	48.87
Granted		—		—
Exercised		—		—
Forfeited and expired		—		—
Outstanding at March 31, 2012		52,819	$	48.87
Options exercisable at March 31, 2012		17,606	$	48.87

        The total stock-based compensation associated with all equity awards was $0.8 million, $2.9 million and $34.4 million for the three months ended March 31, 2012 and 2011, and for the period from June 12, 2008 (inception) through March 31, 2012, respectively.