Stock-Based Compensation Plans

6 Months Ended

Jun. 30, 2011

Stock-Based Compensation Plans

Stock-Based Compensation Plans

19. Stock-Based Compensation Plans

Refer to Note 1 within the footnotes to the consolidated financial statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2010 for a detailed discussion of the accounting policy related to stock-based compensation.

The Company recognized stock-based compensation expense related to its various employee and non-employee director stock-based incentive plans of approximately $4.2 million and $5.0 million for the three months ended June 30, 2011 and 2010, respectively, and approximately $9.3 million and $23.5 million for the six months ended June 30, 2011 and 2010, respectively.  Stock-based compensation expense recognized for the six months ended June 30, 2010 included approximately $12.7 million of stock-based compensation expense due to the acceleration of expense recognition related to the former CEO’s and the former Chief Financial Officer’s (“CFO”) separation from the Company during the first quarter of 2010.

During the three months ended June 30, 2011, the Company granted approximately 1.4 million RSUs, with an average grant date fair value of $1.87 per RSU, approximately 0.1 million restricted stock awards with an average grant date fair value of $1.95 per award and approximately 3.3 million options with an average grant date fair value of $1.16 per award.

Options granted during the three months ended June 30, 2011 have a weighted average exercise price of $1.86.  The Company utilized the Black-Scholes option pricing model to determine the fair value of all options granted.  Significant weighted average assumptions used to estimate fair value included expected volatility of 87.4%, expected term of 3.9 years and a risk-free interest rate of 1.33%.  All such options expire six years from grant date.

The Company recorded net shortfalls related to stock-based compensation vestings and settlements of approximately $0.1 million and $1.4 million as a decrease to Additional paid-in capital during the three and six months ended June 30, 2011, respectively.