Share-Based Compensation Shareholders' Equity (Policies)

12 Months Ended

Dec. 31, 2012

Share-based Compensation [Abstract]

Share-based Compensation

Share-Based Compensation

Share-Based Compensation Plans. We have three stock option plans that awards are currently outstanding under, the 2005 Share-Based Compensation Plan, which was adopted by our Board of Directors in March 2005 and was approved by shareholders at the 2005 annual meeting of shareholders, the 2001 Omnibus Share-Based Compensation Plan, which was adopted by our Board of Directors in February 2001 and was approved by shareholders at the 2001 annual meeting of shareholders, and the 1990 Non-Qualified Stock Option Plan solely for our independent directors. No further grants will be made under the 2001 Omnibus Share-Based Compensation Plan or the 1990 Non-Qualified Stock Option Plan, both of which were replaced by the 2005 Share-Based Compensation plan, although options remain outstanding under both plans and are accordingly included in the tables below. In addition, we have an employee stock purchase plan and an employee stock ownership plan.

Under the 2005 plan, stock options and other equity based awards may be granted to employees, directors, and consultants, with directors only eligible to receive restricted awards. Under the 2001 plan, stock options and other equity based awards may be granted to employees. Under the 1990 non-qualified plan, non-employee members of our Board of Directors were automatically granted options to purchase shares of common stock on a formula basis. All three plans provide that the exercise prices for stock options equal 100% of the fair value of the common stock on the date of grant. Restricted stock grants become vested over a three year period, and stock options become exercisable in various terms ranging from one year to five years. Options granted typically expire ten years after the date of grant or earlier in the event of the optionee's separation from employment. At the time the stock options are exercised, the cash received is credited to common stock and additional paid-in capital. Options issued under these plans also previously included a reload feature where additional options are granted at the then current market price when mature shares of Swift Energy common stock are used to satisfy the exercise price of an existing stock option grant. This reload feature was discontinued during 2012. When Swift Energy common stock is used to satisfy the exercise price, the net shares actually issued are reflected in the accompanying statement of stockholders' equity (see note 1 to table below). We view all awards of Share-Based Compensation as a single award with an expected life equal to the average expected life of component awards and amortize the award on a straight-line basis over the life of the award.

The employee stock purchase plan, which began in 1993, provides eligible employees the opportunity to acquire shares of Swift Energy common stock at a discount through payroll deductions. To date, employees have been allowed to authorize payroll deductions of up to 10% of their base salary, within IRS limitations and plan rules, during the plan year by making an election to participate prior to the start of a plan year. The purchase price for stock acquired under the plan is 85% of the lower of the closing price of our common stock as quoted on the New York Stock Exchange at the beginning or end of the plan year. Under this plan for the last three years, we have issued 42,624 shares at a price of $25.26 in 2012, 49,089 shares at a price of $20.37 in 2011, 66,564 shares at a price of $14.29 in 2010. The contributions for the years ended December 31, 2012, 2011 and 2010 were all made in common stock. As of December 31, 2012, 477,481 shares remained available for issuance under this plan.

We receive a tax deduction for certain stock option exercises during the period the options are exercised, generally for the excess of the market value on the exercise date over the exercise price of the options. We receive an additional tax deduction when restricted stock vests at a higher value than the value used to recognize compensation expense at the date of grant. In accordance with guidance contained in FASB ASC 718, we are required to report excess tax benefits from the award of equity instruments as financing cash flows. For the years ended December 31, 2012, 2011 and 2010, we did not recognize any excess tax benefit or shortfall.