Share-Based Payments

3 Months Ended

Mar. 31, 2013

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

Note 7: Share-Based Payments

We recorded share-based compensation expense for the three months ended March 31, 2013 and 2012 of $1,479 and $1,014, respectively, with related tax benefits of $532 and $365, respectively. We also recorded share-based compensation expense for the nine months ended March 31, 2013 and 2012 of $4,235 and $3,332, respectively, with related tax benefits of $1,524 and $1,200, respectively.

Stock Options

We use the Black-Scholes option-pricing model to calculate the fair value of stock option awards. The key assumptions for this valuation method include the expected term of the option, stock price volatility, risk-free interest rate, dividend yield and exercise price. Many of these assumptions are judgmental and highly sensitive in the determination of compensation expense. Under the assumptions indicated below, the weighted-average fair value of stock option grants for the three months ended March 31, 2013 and 2012 was $9.45 and $10.50, respectively. The weighted-average fair value of stock option grants for the nine months ended March 31, 2013 and 2012 was $12.64 and $7.21, respectively. During the three months ended March 31, 2013 and 2012, we granted stock options for an aggregate of 50,000 and 6,500 shares of common stock. During the nine months ended March 31, 2013 and 2012, we granted stock options for an aggregate of 172,934 and 229,562 shares of common stock, respectively.

The table below indicates the key assumptions used in the option valuation calculations for options granted in the periods presented:

	Three Months Ended March 31,						Nine Months Ended March 31,
	2013			2012			2013			2012
Term		7.3 Years			6.6 Years			7.3 Years			6.6 Years
Volatility		59.2	%		59.5	%		59.2	%		59.5	%
Dividend yield		—			—			—			—
Risk-free interest rate		1.4	%		1.5	%		1.2	%		1.5	%
Risk-free interest rate								1.4	%

Restricted Stock

Our share-based compensation expense also includes the effects of the issuance of restricted stock units. The compensation expense related to restricted stock awards is determined based on the market price of our stock at the date of grant applied to the total number of shares that are anticipated to fully vest, which is then amortized over the expected term. There were no shares of restricted stock issued during the three months ended March 31, 2013 and 2012. During the nine months ended March 31, 2013 and 2012, an aggregate of 162,901 and 146,412 shares, respectively, of restricted stock units were issued at a weighted average stock price at date of grant of $18.49 and $13.24, respectively. Generally, the restrictions on the restricted stock units granted to employees prior to January 1, 2011 lapse at a rate of 50% on the three year anniversary and the remaining 50% on the fourth year anniversary. Restrictions on restricted stock units granted to employees after January 1, 2011 lapse at a rate of 25% each year.