Note 6 - Equity-Based Compensation

6 Months Ended

Jun. 30, 2011

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

6.     EQUITY-BASED COMPENSATION

At June 30, 2011, the Company had two active equity-based compensation plans under which equity-based awards may be granted, including stock appreciation rights, restricted shares of common stock, performance awards, stock options and stock units. At June 30, 2011, there were an aggregate of 2.8 million shares authorized for issuance under these plans. At June 30, 2011, approximately 1.6 million and 0.2 million shares remained available for future issuance under the 2009 Employee Equity Incentive Plan (the “2009 Employee Plan”) and the 2011 Non-Employee Director Equity Plan (the “2011 Director Plan”), respectively.

Stock Awards

Stock awards, which include restricted stock shares and restricted stock units, of the Company’s common stock are awarded from time to time to executive officers and certain key employees of the Company. Stock award compensation is recorded based on the award date fair value and charged to expense ratably through the restriction period. Forfeitures of unvested stock awards cause the reversal of all previous expense recorded as a reduction of current period expense.

A summary of restricted award activity during the six months ended June 30, 2011 follows:

	Stock Awards			Weighted Average Award Date Fair Value
Outstanding at January 1, 2011		888,855		$	15.25
Restricted shares awarded		166,276			26.54
Restricted stock units awarded		6,768			26.60
Restricted shares distributed		(251,962	)		13.38
Restricted stock units distributed		–			–
Restricted shares forfeited		(67,461	)		20.53
Restricted stock units forfeited		–			–
Outstanding at June 30, 2011		742,476		$	18.04

Expense associated with stock awards was $2.2 million in the six months ended June 30, 2011 and 2010, respectively. Unrecognized pre-tax expense of $6.9 million related to stock awards is expected to be recognized over the weighted average remaining service period of 1.8 years for awards outstanding at June 30, 2011.

Expense associated with stock awards was $1.0 million and $1.1 million for the quarters ended June 30, 2011 and 2010, respectively.

Deferred Stock Unit Awards

Deferred stock units generally are awarded to directors of the Company and represent the Company’s obligation to transfer one share of the Company’s common stock to the grantee at a future date and generally are fully vested on the date of the grant. The expense related to the issuance of deferred stock units is recorded according to this vesting schedule.

A summary of deferred stock unit activity during the six months ended June 30, 2011 follows:

	Deferred Stock Units			Weighted Average Award Date Fair Value
Outstanding at January 1, 2011		163,318		$	19.43
Awarded		25,601			25.66
Shares distributed		(5,681	)		14.18
Forfeited		–			–
Outstanding at June 30, 2011		183,238		$	20.46

Expense associated with awards of deferred stock units in the three and six months ended June 30, 2011 and 2010 was $0.7 million, respectively.

Stock Options

Stock options on the Company’s common stock are awarded from time to time to executive officers and certain key employees of the Company. Stock options granted generally have a term of seven years and an exercise price equal to the market value of the underlying common stock on the date of grant. The intrinsic value calculation is based on the Company’s closing stock price of $20.97 on June 30, 2011.

A summary of stock option activity during the six months ended June 30, 2011 follows:

	Shares			Weighted Average Exercise Price		Aggregate Intrinsic Value (in millions)
Outstanding at January 1, 2011		1,198,516		$	18.42
Granted		225,505			26.92
Exercised		(119,559	)		16.66
Canceled/Expired		(145,376	)		27.80
Outstanding at June 30, 2011		1,159,086		$	19.07	$	4.3
Exercisable at June 30, 2011		706,332		$	16.86	$	3.5

In the quarters ended June 30, 2011 and 2010, the Company recorded expense of $0.5 million related to stock option grants, respectively. In the six months ended June 30, 2011 and 2010, the Company recorded expense of $1.2 million and $0.9 million, respectively, related to stock option grants. Unrecognized pre-tax expense of $3.4 million related to stock option grants is expected to be recognized over the weighted average remaining contractual term of 2.1 years for awards outstanding at June 30, 2011.

In the first six months of 2011, the Company collected $2.0 million from stock option exercises that had a total intrinsic value of $1.1 million. In the first six months of 2010, the Company collected $1.8 million from stock option exercises that had a total intrinsic value of $1.0 million.

The Company uses a binomial option pricing model. The fair value of stock options granted during the six-month periods ended June 30, 2011 and 2010 was estimated at the date of grant based on the assumptions presented in the table below. Volatility, expected term and dividend yield assumptions were based on the Company’s historical experience. The risk-free rate was based on a U.S. treasury note with a maturity similar to the option grant’s expected term.

	For the Six Months Ended June 30,
	2011								2010
	Range					Weighted Average			Range			Weighted Average
Weighted average grant-date fair value						$	11.61					$	10.56
Volatility		47.0	-	50.6	%		50.4	%		50.4	%		50.4	%
Expected term (years)			7.0				7.0			7.0			7.0
Dividend yield			0.0		%		0.0	%		0.0	%		0.0	%
Risk-free rate		2.3	-	3.0	%		2.8	%		3.1	%		3.1	%