Accounting for Stock-Based Compensation

3 Months Ended

Jun. 30, 2011

Accounting for Stock-Based Compensation [Abstract]

Accounting for Stock-Based Compensation

Note 3. Accounting for Stock-Based Compensation.

As of June 30, 2011, we had four equity compensation plans: the 2011 Equity Incentive Plan (2011 Plan), the 2010 Equity Incentive Award Plan (2010 Plan), the 2008 Stock Awards and Incentive Plan (2008 Plan) and the 2004 Incentive Compensation Plan (2004 Plan, and together with the 2011 Plan, the 2010 Plan and the 2008 Plan, the Plans).  The 2011 Plan provides for stock options, stock appreciation rights, stock awards, restricted stock awards and stock units, performance shares and performance units conditioned upon meeting performance criteria, and other stock or cash-based awards.  The 2010 Plan provides for stock options, stock appreciation rights, restricted stock awards and restricted stock units, dividend equivalents, stock payment awards and other stock or cash-based awards that may be payable upon attainment of pre-established performance goals.  The 2008 Plan provides for equity awards, including stock options, stock appreciation rights, restricted stock awards, performance awards, phantom stock awards, or stock units.  The 2004 Plan provides for equity awards, including stock options and restricted stock units.  At June 30, 2011, there were approximately 20,000,000 shares available for future grants under the 2011 Plan (no grants have been made under this plan), nine shares available for future grants under the 2010 Plan, 572,500 shares available for future grants under the 2008 Plan and 833,430 shares available for future grants under the 2004 Plan.

We measure the cost of employee services received in exchange for an award of equity instruments based on the fair value of the award on the grant date for all awards granted in accordance with ASC Topic 718, Compensation – Stock Compensation.

Stock Options

There were no options granted during either the three months ended June 30, 2011 or June 30, 2010.

Option activity for the Plans for the three months ended June 30, 2011 is summarized as follows:

(In thousands, except share prices)	Number of Options			Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term		Aggregate Intrinsic Value
Options outstanding at April 1, 2011		13,037		$	0.252		9.559
Granted		-			-		-
Exercised		-			-		-
Canceled		(18	)		2.983		4.567
Options outstanding at June 30, 2011		13,019		$	0.243		9.316	$	-
Options exercisable at June 30, 2011		1,808		$	0.509		8.814	$	-

The aggregate intrinsic value in the preceding table represents the total pretax intrinsic value, based on our closing stock price of $0.18 as of June 30, 2011, which theoretically could have been received by the option holders had all option holders exercised their options as of that date.  There were no options exercised, and thus no aggregate intrinsic value of options exercised or cash received, during the three months ended June 30, 2011 and 2010.  There were no in-the-money options exercisable as of June 30, 2011 and 2010.

There was no excess tax benefit recorded for the tax deductions related to stock options during the three months ended June 30, 2011 and 2010.

As of June 30, 2011, there were approximately 11,211,000 unvested stock options.

Restricted Stock Awards

Restricted stock award activity under the Plans for the three months ended June 30, 2011 are presented below:

Restricted Stock Awards	Shares (000)		Weighted-Average Exercise Price
Outstanding at April 1, 2011		25,990	$	0.151
Granted		-		-
Exercised		-		-
Forfeited or Expired		-		-
Outstanding at June 30, 2011		25,990	$	0.151
Vested at June 30, 2011		6,598	$	0.151

As of June 30, 2011, there were approximately 19,392,000 unvested restricted stock awards.  There were no restricted stock awards awarded in the three months ended June 30, 2011 or June 30, 2010.

Stock-Based Compensation Valuation and Expense Information

The fair value of each option award is estimated on the date of grant using a closed-form option valuation model (Black-Scholes) based on the assumptions noted in the following table. Expected volatilities are based on implied volatilities from traded options on our stock, historical volatility of our stock and other factors. The expected term of options granted represents the period of time that options granted are expected to be outstanding.  There were no options granted for the three months ended June 30, 2011 and 2010, therefore no inputs were used to value options.

Compensation expense relating to stock options and restricted stock awards for the three months ended June 30, 2011 and 2010 was $284,000 and none, respectively.  Remaining unamortized compensation expense related to stock options and restricted stock awards for the three months ended June 30, 2011 is $4.2 million.