Stock-based Compensation

3 Months Ended

Mar. 31, 2014

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

Stock-based Compensation

Stock-Based Compensation

As of March 31, 2014, an aggregate of 1,067,262 shares of our common stock, subject to certain adjustments, were reserved for issuance under the Incentive Plan, including an aggregate of 816,887 options, restricted stock units and stock units granted. There were 250,375 shares available for grant at March 31, 2014.

During the three months ended March 31, 2013, we cancelled 114,750 restricted shares granted in 2011 to certain executives and issued additional performance-based restricted shares in exchange.  We also issued performance-based restricted shares to other members of management.  Vesting is contingent upon the achievement of certain performance objectives, some of which are subjective in nature.  Compensation cost for these awards is recognized over the service period, and variable accounting is applied whereby the fair value of the award is remeasured each reporting period until vesting occurs. The cancellation and issuance of shares was accounted for as a modification with the future compensation expense computed using the greater of unamortized fair value of the cancelled awards or the incremental fair value as remeasured each reporting period.

Compensation expense related to the stock option, restricted stock, and restricted stock unit awards during the three months ended March 31, 2014 and 2013 was $596 and $282, respectively. During the three months ended March 31,2014, we granted 108,212 restricted stock unit awards, which have a weighted average grant date fair value of $13.03 per share. During the three months ended March 31, 2013, we granted 77,974 shares of restricted stock, which have a weighted average grant date fair value of $19.97 per share.

As of March 31, 2014, there was $2,443 of unrecognized compensation expense related to unvested restricted stock units. That expense is expected to be recognized over a weighted-average period of 1.82 years.

As of March 31, 2014, there was $4,472 of unrecognized compensation expense related to unvested stock options. That expense is expected to be recognized over a weighted-average period of 2.2 years .