Stock-based Compensation

3 Months Ended

Mar. 31, 2013

Stock-based Compensation

Stock-based Compensation

Note 7:  Stock-based Compensation

Under the terms of the Company’s 2010 Equity Incentive Plan, the Company is allowed, but not required, to source stock option exercises from its inventory of treasury stock.  As of March 31, 2013, the Company held 1,595,973 shares in treasury, with 895,655 additional shares authorized for repurchase under its stock repurchase plan.  The repurchase plan has no expiration date and expires when the Company has repurchased all of the remaining authorized shares.

A description of the 2010 Equity Incentive Plan can be found in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012.  The Company’s 2010 Equity Incentive Plan is designed to encourage ownership of its common stock by its employees and directors, to provide additional incentive for them to promote the success of its business, and to attract and retain talented personnel. All of the Company’s employees and directors, and those of its subsidiaries, are eligible to receive awards under the plan.

A summary of the status of and changes in the Company’s stock option plans for the three months ended March 31, 2013 follows:

	Shares	Weighted- Average Exercise Price		Weighted- Average Remaining Contractual  Term
Outstanding at beginning of year	857,468	$	17.01
Granted	—	—
Exercised	—	—
Forfeited	148,689	16.00
Outstanding at end of period	708,779	$	17.22	2.79
Exercisable at end of period	708,779	$	17.22	2.79

The Company did not recognize any compensation expense related to stock options for the three months ended March 31, 2013 or 2012.

A summary of the changes in the Company’s stock unit awards for the three months ended March 31, 2013, is as follows:

			Director			Weighted-
	Restricted		Deferred			Average
	Stock		Stock			Grant Date
	Units		Units	Total		Fair Value
Non-vested at beginning of year	736,412		32,991	769,403		$	4.92
Granted	13,158		—	13,158		4.56
Dividend Equivalents Earned	—		—	—		—
Vested	(18,648	)	—	(18,648	)	5.24
Forfeited	—		—	—		—
Non-vested at end of period	730,922		32,991	763,913		$	4.90
Outstanding at end of period	730,922		56,920	787,842		$	4.91

All recipients earn quarterly dividend equivalents on their respective units. These dividend equivalents are not paid out during the vesting period, but instead entitle the recipients to additional units. Therefore, dividends earned each quarter will compound based upon the updated unit balances.  Upon vesting/delivery, shares are expected to be issued from treasury.

On March 26, 2013, under the terms of the 2010 Equity Incentive Plan, the Company granted 13,158 restricted stock units (“RSUs”) to a certain member of management.  As the stock price on the grant date of March 26, 2013 was $4.56, total compensation cost to be recognized is $60,000. This cost will be recognized over a period of one to three years. Per the respective agreements, 4,386 RSUs vest over a requisite service period of one year, 4,386 RSUs vest over a requisite service period of two years, and the remaining 4,386  RSUs vest over a requisite service period of three years.  Subsequent to each requisite service period, the awards will vest 100%.

A listing of RSUs granted in 2012 under the terms of the 2010 Equity Incentive Plan can be found in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012.

The Company recognized $0.3 million and $0.2 million of compensation expense related to non-vested stock units for the three months ended March 31, 2013 and 2012, respectively.  As of March 31, 2013, there was $2.0 million of total unrecognized compensation cost related to these non-vested stock units.  This cost is expected to be recognized over a period of 2.7 years.