Stock-Based Compensation Plans

6 Months Ended

Jun. 30, 2012

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, 2011, 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 $0.0 million and $4.2 million for the three months ended June 30, 2012 and 2011, respectively, and approximately $4.5 million and $9.3 million for the six months ended June 30, 2012 and 2011, respectively.  Stock-based compensation expense for the three and six months ended June 30, 2012 was reduced by approximately $2.9 million as a result of forfeitures.

During the three months ended June 30, 2012, the Company granted approximately 1.6 million RSUs, with an average grant date fair value of $0.86 per RSU, approximately 2.4 million restricted stock awards with an average grant date fair value of $0.90 per award and approximately 0.7 million options with an average grant date fair value of $0.42 per award.

Options granted during the three months ended June 30, 2012 have a weighted average exercise price of $0.87.  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 73.6%, expected term of 3.3 years and a risk-free interest rate of 0.5%.  All such options expire 6 years from grant date.