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Stock-Based Compensation Plans
 12 Months Ended
Dec. 31, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stock-Based Compensation Plans [Text Block]
Stock-Based and Deferred Compensation Plans

The Company may grant stock options, stock appreciation rights, performance-based awards, and time-based restricted shares to officers and key employees under the 2007 Long Term Incentive Plan and stock options, restricted shares, and restricted stock units to directors under the 2007 Stock Option Plan for Non-Employee Directors. The maximum number of shares authorized under these plans is 19.0 million. Shares available for award under the plans at December 31, 2014 were 1.8 million.
Stock Options and Stock Appreciation Rights
Generally, the awards of stock options and stock appreciation rights fully vest three years from grant date and expire ten years from grant date. Beginning in 2012, some of the stock options and stock appreciation rights vested over a three year period based on the achievement of certain performance objectives. The Company generally issues new shares when options to purchase common shares or stock appreciation rights are exercised. The following table summarizes stock options and stock appreciation rights activity:
 
2014
 
2013
 
2012
 
 
 
Weighted-
Average
Exercise
Price Per
Share
 
 
 
Weighted-
Average
Exercise
Price Per
Share
 
 
 
Weighted-
Average
Exercise
Price Per
Share
(in thousands, except per share amounts)
Shares
 
 
Shares
 
 
Shares
 
Outstanding at January 1,
6,128

 
$
3.66

 
9,538

 
$
4.04

 
14,152

 
$
3.70

Granted *
998

 
3.41

 
595

 
4.75

 
994

 
3.41

Exercised
(725
)
 
1.73

 
(804
)
 
2.41

 
(4,854
)
 
2.80

Forfeited
(215
)
 
3.99

 
(361
)
 
3.39

 
(6
)
 
2.91

Expired
(962
)
 
3.73

 
(2,840
)
 
5.56

 
(748
)
 
4.87

Outstanding at December 31,
5,224

 
$
3.85

 
6,128

 
$
3.66

 
9,538

 
$
4.04

Expected to vest at December 31,
5,224

 
$
3.85

 
6,128

 
$
3.66

 
9,538

 
$
4.04

Exercisable at December 31,
3,477

 
$
3.98

 
5,064

 
$
3.61

 
8,486

 
$
4.13

 
 
 
 
 
 
 
 
 
 
 
 
(dollars in millions)
 
 
 
 
 
 
 
 
 
 
 
Compensation expense for the year
$
0.3

 
 
 
$
0.6

 
 
 
$
1.1

 
 
Tax benefit related to compensation expense
$
(0.1
)
 
 
 
$
(0.2
)
 
 
 
$
(0.4
)
 
 
Intrinsic value of awards exercised
$
1.5

 
 
 
$
1.2

 
 
 
$
10.6

 
 
Cash received from awards exercised
$
1.3

 
 
 
$
2.4

 
 
 
$
5.5

 
 
Grant date fair value of awards vested
$
0.4

 
 
 
$
0.4

 
 
 
$
0.5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
* Assumes the maximum number of awards that can be earned if the performance conditions are achieved.

The following table summarizes our outstanding and exercisable awards at December 31, 2014:
 
Outstanding
 
Exercisable
 
 
 
Weighted-
Average
Exercise
Price Per
Share
 
 
 
Weighted-
Average
Exercise
Price Per
Share
(in thousands, except per share amounts)
Shares
 
 
Shares
 
$1.67 to $2.91
596

 
$
2.46

 
596

 
$
2.46

$3.40 to $4.00
2,882

 
3.57

 
1,389

 
3.75

$4.20 to $5.31
1,746

 
4.80

 
1,492

 
4.80

Total
5,224

 
$
3.85

 
3,477

 
$
3.98


As of December 31, 2014, the aggregate intrinsic value for awards outstanding and exercisable was approximately $0.4 million. The weighted-average remaining contractual life for awards outstanding and exercisable is approximately five years and three years, respectively. As of December 31, 2014, there was $1.4 million of unrecognized stock compensation expense, which is expected to be recognized over a weighted-average period of approximately two years.
The fair values at the date of grant were estimated using the Black-Scholes pricing model with the following assumptions:
 
2014
2013
2012
Expected volatility
35.5
%
43.6
%
43.5
%
Risk-free interest rate
1.5
%
0.8
%
0.8
%
Expected holding period (in years)
5

5

5

Expected dividends
0.0
%
0.0
%
0.0
%
Weighted-average grant date fair value
$
1.14

$
1.84

$
1.32


The expected volatility assumption used in the Black-Scholes pricing model was based on historical volatility. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant. The expected holding period was estimated using the historical exercise behavior of employees and adjusted for abnormal activity. Expected dividends are based on the Company’s history of not paying dividends.
Performance-Based Restricted Awards
Awards granted generally vest over three years and upon the achievement of certain performance-based objectives. Performance-based awards are expensed based on their grant date fair value if it is probable that the performance conditions will be achieved.
The following table summarizes our outstanding performance-based restricted award activity:
 
2014
 
2013
 
2012
 
 
 
Weighted-
Average
Exercise
Price Per
Share
 
 
 
Weighted-
Average
Exercise
Price Per
Share
 
 
 
Weighted-
Average
Exercise
Price Per
Share
(in thousands, except per share amounts)
Shares
 
 
Shares
 
 
Shares
 
Non-vested at January 1,
1,537

 
$
3.97

 
1,687

 
$
3.13

 
1,839

 
$
2.90

Granted*
1,085

 
3.56

 
1,067

 
4.56

 
808

 
3.40

Vested
(635
)
 
3.71

 
(703
)
 
3.07

 
(552
)
 
2.85

Forfeited
(241
)
 
3.65

 
(514
)
 
3.67

 
(408
)
 
2.79

Non-vested at December 31,
1,746

 
$
3.85

 
1,537

 
$
3.97

 
1,687

 
$
3.13

 
 
 
 
 
 
 
 
 
 
 
 
(dollars in millions)
 
 
 
 
 
 
 
 
 
 
 
Compensation expense for the year
$
1.4

 
 
 
$
2.6

 
 
 
$
2.7

 
 
Tax benefit related to compensation expense
$
(0.5
)
 
 
 
$
(1.0
)
 
 
 
$
(1.0
)
 
 
Grant date fair value of awards vested
$
2.3

 
 
 
$
2.2

 
 
 
$
1.6

 
 
 
 
 
 
 
 
 
 
 
 
 
 
* Assumes the maximum number of awards that can be earned if the performance conditions are achieved.

As of December 31, 2014, unrecognized compensation expense related to performance-based awards was $3.6 million, which is expected to be recognized over a weighted-average period of approximately two years.

Time-Based Restricted Awards

Awards granted to employees generally vest in one-third increments over a period of three years. Awards granted to directors in 2012 and in prior years vest on the third anniversary of the grant date. Awards granted to directors in 2013 vest on the second anniversary of the grant date. Awards granted in 2014 vest on the first anniversary of the grant date.

The following table summarizes our time-based restricted award activity: 
 
2014
 
2013
 
2012
 
 
 
Weighted-
Average
Exercise
Price Per
Share
 
 
 
Weighted-
Average
Exercise
Price Per
Share
 
 
 
Weighted-
Average
Exercise
Price Per
Share
(in thousands, except per share amounts)
Shares
 
 
Shares
 
 
Shares
 
Non-vested at January 1,
1,044

 
$
3.55

 
1,298

 
$
3.11

 
872

 
$
2.89

Granted
176

 
3.19

 
279

 
4.72

 
725

 
3.26

Vested
(514
)
 
3.25

 
(454
)
 
3.03

 
(299
)
 
2.83

Forfeited
(22
)
 
3.19

 
(79
)
 
3.40

 
—

 
—

Non-vested at December 31,
684

 
$
3.70

 
1,044

 
$
3.55

 
1,298

 
$
3.11

 
 
 
 
 
 
 
 
 
 
 
 
(dollars in millions)
 
 
 
 
 
 
 
 
 
 
 
Compensation expense for the year
$
1.6

 
 
 
$
1.7

 
 
 
$
1.5

 
 
Tax benefit related to compensation expense
$
(0.6
)
 
 
 
$
(0.6
)
 
 
 
$
(0.6
)
 
 
Grant date fair value of awards vested
$
1.7

 
 
 
$
1.4

 
 
 
$
0.8

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


As of December 31, 2014, there was $0.6 million of unrecognized compensation expense related to these restricted stock awards, which is expected to be recognized over a weighted-average period of approximately one year.
Cash Settled and Other Awards
The Company granted 531,000 cash-settled stock appreciation rights awards in 2012 with a grant date value of $0.8 million. A Black-Scholes pricing model was utilized to determine the fair value of these awards at the date of grant. For awards granted in 2012, the weighted-average fair value per share was $1.32. The final payments of these awards will be indexed to the percentage change in the Company’s stock price from the date of grant. At December 31, 2014, the amount of remaining unrecognized compensation expense for cash-settled stock appreciation rights was nominal. The aggregate intrinsic value of outstanding and exercisable awards at December 31, 2014 was $0.3 million and $0.4 million, respectively.
The Company also granted cash-payment performance awards in 2014 and 2012 with base awards of $3.6 million and $2.3 million, respectively, with the final award payment indexed to the percentage change in the Company’s stock price from the date of grant. No cash-payment awards were issued in 2013. In 2014, we recorded $0.6 million of expense related to these awards, a $0.2 million benefit in 2013 and $4.4 million of expense in 2012.
Deferred Compensation Plans
The Company currently has deferred compensation plans for both the Board of Directors and certain executives of the Company. Under the directors deferred compensation plan, each director can defer receipt of all or a part of their director fees and annual retainers, which can be invested in various investment funds including the Company’s common stock. In years prior to 2012, the Company granted 6,000 phantom shares to each non-employee director on the first business day of each year, which are fully vested once a director has five years of service. No phantom shares were granted to non-employee directors in 2014. Distributions to the directors are generally in the form of cash. The executive deferred compensation plan allows for certain executives to defer a portion of their annual base pay, bonus, or stock awards. Under the executive deferred compensation plan, participants can elect to receive distributions in the form of either cash or common shares.
At December 31, 2014 and 2013, there were 0.4 million and 0.7 million common shares deferred in these plans, respectively. As these awards can be settled in cash, we record compensation costs each period based on the change in the Company’s stock price. We recognized a compensation benefit of $0.3 million in 2014, a benefit of $1.4 million in 2013, and expense of $1.8 million in 2012.