STOCK-BASED COMPENSATION

The Company has stock incentive plans for executives and eligible employees. Stock awards include stock options, restricted stock, and performance shares. The Company previously awarded stock appreciation rights, restricted stock units, and performance share units. Stock-based compensation expense for the years ended December 31, 2015, 2014, and 2013 was $9.3 million, $9.3 million, and $4.8 million, respectively. At December 31, 2015, there was $8.0 million of unrecognized stock-based compensation cost which is expected to be recognized over a weighted-average remaining vesting period of 1.4 years.

Stock Options and Stock Appreciation Rights

Stock options and stock appreciation rights (SARs) granted under the Company’s incentive plans vest over three years and are exercisable over a period not to exceed ten years from the grant date. The exercise price of stock options is equal to the fair market value of the shares on the date of the grant. The value of each stock option award is estimated using the Black-Scholes option pricing model. Stock options are accounted for as equity awards and SARs are accounted for as liability awards and remeasured at each reporting date. SARs, when vested, provide the participant the right to receive cash equal to the excess of the market price of the shares over the exercise price when exercised.

The following table sets forth the weighted average fair value of stock options and the assumptions used to estimate the fair value of the stock options using the Black-Scholes option valuation model:



	2015			2014			2013
Weighted average fair value of stock options granted	$	2.65		$	3.79		$	12.60
Volatility	55.71		%	50.93		%	76.74		%
Expected life in years	4.75			3.9			5.0
Risk-free interest rate	1.51		%	1.25		%	0.84		%
Dividend yield	—			—			—

The following table summarizes stock option and SAR activity for the years ended December 31, 2015, 2014, and 2013:



	Stock Options				SARs
	Shares		Weighted Average Exercise Price		Shares		Weighted Average Exercise Price
Outstanding at December 31, 2012	370,000		$	30.20	68,865		$	13.83
Granted	190,452		20.41		—		—
Exercised	(13,027	)	10.77		(6,617	)	13.14
Canceled/forfeited	(131,855	)	29.30		(12,039	)	15.40
Outstanding at December 31, 2013	415,570		27.36		50,209		14.15
Granted	415,172		9.45		—		—
Exercised	—		—		—		—
Canceled/forfeited	(232,396	)	23.94		(3,637	)	15.40
Outstanding at December 31, 2014	598,346		16.26		46,572		14.06
Granted	310,028		5.57		—		—
Exercised	—		—		—		—
Canceled/forfeited	(238,365	)	12.69		—		—
Outstanding at December 31, 2015	670,009		$	12.58	46,572		$	14.06



	Options Outstanding				Options Exercisable
Range of Exercise Price	Number Outstanding	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)	Number Exercisable	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)
$ 0.00-$10.00	439,746	$	7.33	8.71	75,613	$	9.41	7.49
$10.00-$20.00	71,540	13.42		7.56	40,823	14.56		7.31
$20.00-$30.00	149,992	25.63		6.31	126,828	25.98		6.17
$30.00-$40.00	3,134	39.90		1.22	3,134	39.90		1.22
$40.00-$50.00	3,336	48.50		2.03	3,336	48.50		2.03
$50.00-$60.00	2,261	51.40		0.14	2,261	51.40		0.14
	670,009	$	12.58		251,995	$	19.86

At December 31, 2015, there was $0.4 million of unrecognized compensation cost related to non-vested stock options to be recognized over a weighted average period of 1.1 years.

Restricted Stock and Restricted Stock Units

Restricted stock granted under the Company’s incentive plans are accounted for based on the market value of the underlying shares on the date of grant and vest in equal installments annually over three years. Restricted stock awards are accounted for as equity awards and restricted stock unit awards were accounted for as liability awards. Restricted stock units were remeasured at each reporting date and settled in cash based on the number of vested restricted stock units multiplied by the current market price of the common shares when vested. Holders of restricted stock are entitled to vote the shares and to receive any dividends declared on the shares.

The following table summarizes restricted stock and restricted stock units activity for the years ended December 31, 2015, 2014, and 2013:



	Restricted Stock				Restricted Stock Units
	Number of Shares		Weighted Average Grant Date Fair Value		Number of Units		Weighted Average Fair Value
Outstanding at December 31, 2012	239,698		$	25.38	11,411		$	24.14
Granted	573,467		15.38		—		—
Vested	(90,963	)	26.83		(11,411	)	22.74
Cancelled/Forfeited	(109,116	)	23.30		—		—
Outstanding at December 31, 2013	613,086		16.68		—		—
Granted	695,897		9.83		—		—
Vested	(234,103	)	17.16		—		—
Cancelled/Forfeited	(172,881	)	11.87		—		—
Outstanding at December 31, 2014	901,999		12.19		—		—
Granted	1,180,384		5.49		—		—
Vested	(317,122	)	13.38		—		—
Cancelled/Forfeited	(257,849	)	7.59		—		—
Outstanding at December 31, 2015	1,507,412		$	7.49	—		$	—

At December 31, 2015, there was $3.2 million of unrecognized compensation cost related to restricted stock awards to be recognized over a weighted-average period of 1.2 years.

Performance Shares and Performance Share Units

Performance shares granted under the Company’s incentive plans are accounted for at fair value using a Monte Carlo simulation valuation model on the date of grant. Performance share awards are accounted for as equity awards and performance units are accounted for as liability-based awards and remeasured each reporting date. The performance shares vest at the end of a three-year service period if relative stockholder return and internal performance metrics are met. The existence of a market condition requires recognition of compensation cost for the performance share awards over the requisite period regardless of whether the relative stockholder return metric is met. Performance share units were settled in cash based on the current market price of the common shares when vested.

The following table summarizes performance shares and performance units’ activity for the years ended December 31, 2015, 2014, and 2013:



	Performance Shares				Performance Units
	Number of Shares		Weighted Average Grant Date Fair Value		Number of Units		Weighted Average Fair Value
Outstanding at December 31, 2012	109,159		$	26.92	34,239		$	39.78
Granted	173,773		23.35		34,239		38.02
Vested	(4,160	)	30.97		(68,478	)	38.02
Cancelled/Forfeited	(68,377	)	34.49		—		—
Outstanding at December 31, 2013	210,395		28.04		—		—
Granted	358,398		12.21		—		—
Vested	(34,611	)	27.18		—		—
Cancelled/Forfeited	(17,352	)	27.15		—		—
Outstanding at December 31, 2014	516,830		17.61		—		—
Granted	809,293		6.97		—		—
Vested	—		—		—		—
Cancelled/Forfeited	(190,988	)	15.62		—		—
Outstanding at December 31, 2015	1,135,135		$	10.35	—		$	—

At December 31, 2015, there was $3.7 million of unrecognized compensation cost related to performance shares to be recognized over a weighted average period of 1.7 years.

Supplemental Incentive Plan

In 2014, the Company adopted a supplemental incentive plan under which benefits are payable upon achievement of certain performance and market conditions. The maximum potential incentive payout under the plan is $3.8 million, of which $2.8 million may be settled in cash or stock at the Company’s discretion. At December 31, 2015, $2.2 million has been accrued for this plan.