Stock-based Compensation

3 Months Ended

Mar. 31, 2014

Stock-based Compensation

Stock-based Compensation

Note 7:  Stock-based Compensation

The Company grants share-based compensation awards to its employees and members of its board of directors as provided for under the Company’s 2010 Equity Incentive Plan. The Company currently grants share-based compensation in the form of restricted stock units (“RSUs”) and deferred stock units (“DSUs”).  The Company also has outstanding stock options granted prior to 2011.  Under the terms of the Company’s 2010 Equity Incentive Plan, the Company is allowed, but not required, to source stock option exercises and grants of RSUs and DSUs from its inventory of treasury stock.  As of March 31, 2014, the Company held 1,467,852 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, 2013.  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 awards for the three months ended March 31, 2014 follows:

		Weighted-		Weighted-
		Average		Average
		Exercise		Remaining Contractual
	Shares	Price		Term
Outstanding at beginning of year	696,379	$	17.22
Granted	—	—
Exercised	—	—
Forfeited	161,449	19.74
Outstanding at end of period	534,930	$	16.46	2.42
Exercisable at end of period	534,930	$	16.46	2.42

The Company did not record any stock option compensation expense for the three months ended March 31, 2014 or 2013.

A summary of the changes in the Company’s stock unit awards for the three months ended March 31, 2014, is as follows:

			Director			Weighted-
	Restricted		Deferred			Average
	Stock		Stock			Grant Date
	Units		Units	Total		Fair Value
Non-vested at beginning of year	919,928		29,054	948,982		$	4.96
Granted	—		—	—		—
Dividend Equivalents Earned	6,731		211	6,942		5.50
Vested	(8,871	)	—	(8,871	)	5.23
Forfeited	(33,370	)	—	(33,370	)	4.73
Non-vested at end of period	884,418		29,265	913,683		$	4.97
Outstanding at end of period	884,418		87,951	972,369		$	4.99

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 compound based upon the updated unit balances.  Upon vesting/delivery, shares are expected to be issued from treasury.

The Company recognized $0.2 million and $0.3 million of compensation expense related to non-vested stock units for the three months ended March 31, 2014 and 2013.  As of March 31, 2014, there was $2.5 million of total unrecognized compensation cost related to these non-vested stock units.  This cost is expected to be recognized over a period of 3.4 years.