Stock-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2013

Share-based Compensation [Abstract]

Compensation Expense Relating to Restricted Awards

The following is a schedule of the changes in the Company’s unvested Class E units (units in thousands):

	Units		Weighted Average Grant Price
Unvested as of December 31, 2012	476		$	36.78
Issued	—		—
Vested	(442	)	37.24
Forfeited	(34	)	30.89
Unvested as of September 30, 2013	—		$	—

The following is a schedule of the changes in the Company’s unvested Class B units (units in thousands):

	Units		Weighted Average Grant Price
Unvested as of December 31, 2012	417		$	89.99
Issued	58		73.54
Vested	(438	)	87.86
Forfeited	(37	)	89.28
Unvested as of September 30, 2013	—		$	—

The following is a schedule of the changes in the Company’s unvested Class E units (units in thousands):

	Units		Weighted Average Grant Price
Unvested as of December 31, 2012	476		$	36.78
Issued	—		—
Vested	(442	)	37.24
Forfeited	(34	)	30.89
Unvested as of September 30, 2013	—		$	—

The following is a summary of the changes in the incentive units for the nine months ended September 30, 2013 (units in thousands):

	Vested		Unvested
Incentive units at January 1, 2013	24		45
Issued	1		12
Vested	53		(53	)
Exercised	(22	)	—
Canceled	(1	)	(4	)
Incentive units at September 30, 2013	55		—

Compensation expense from continuing operations relating to restricted awards, primarily recorded in Employee compensation and benefits, and the corresponding income tax benefit, which was recorded in Income tax benefit on the Consolidated Statements of Operations are presented in the following table (in thousands):

	For the three months   ended September 30,
	2013
Stock award compensation expense	$	12,234
Income tax benefit	4,649

Summary of Restricted Awards Activity

The following table summarizes restricted awards activity, including awards related to employees working in businesses that are included within discontinued operations, for the three months ended September 30, 2013 (awards in thousands):

	Restricted Stock Units
	Number of Units		Weighted- Average Grant date Fair Value
July 1, 2013	—		$	—
Conversion of outstanding Knight RSUs	3,251		11.22
Granted	6,004		10.58
Vested	(45	)	11.07
Forfeited	(246	)	11.45
Outstanding at September 30, 2013	8,963		$	10.78

Compensation Expense Relating to Stock Options

Compensation expense from continuing operations relating to stock options and SARs, all of which was recorded in Employee compensation and benefits, as well as the corresponding income tax benefit, which is recorded in Income tax benefit on the Consolidated Statements of Operations are as follows (in thousands):

	For the three months   ended September 30,
	2013
Stock option and SAR compensation expense	$	915
Income tax benefit	348

Summary of Stock Option Activity

The following table summarizes stock option and SAR activity and stock options exercisable for the three months ended September 30, 2013 (awards in thousands):

	Number of Stock Awards		Weighted- Average Exercise Price		Aggregate Intrinsic Value		Weighted- Average Remaining Life (years)
July 1, 2013	—		$	—
Conversion of outstanding Knight options	782		41.25
Granted at market value (1)	4,324		15.19
Exercised	—		—
Forfeited or expired	(79	)	45.81
Outstanding at September 30, 2013 (1)	5,027		$	18.76	$	387	4.49
Exercisable at September 30, 2013	703		$	40.74	$	381	2.61
Available for future grants at September 30, 2013 *	6,327

* Represents both options and awards available for grant.

⁽¹⁾ Includes 1.7 million of SARs.

Schedule of compensation costs

Compensation expense (benefit) related to the Class B, Class E and Incentive units, all of which are recorded within Employee compensation and benefits on the Consolidated Statements of Operations are as follows (in thousands):

	Three months ended September 30,					Nine months ended September 30,
	2013			2012		2013		2012
Class B and E units	$	—		$	5,429	$	19,860	$	9,124
Incentive units	(875		)	368		1,428		788
Total	$	(875	)	$	5,797	$	21,288	$	9,912