Stock-Based Compensation (Notes)

3 Months Ended

Mar. 31, 2014

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

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

Stock-Based Compensation

The Company has an equity compensation plan, the 2009 Long-Term Incentive Plan (the “Plan”) which has been amended from time to time. The Plan was approved by our shareholders and is administered by the Compensation Committee of our Board of Directors. Under the Plan, the Company is permitted to grant (1) nonqualified stock options to purchase common shares, (2) incentive stock options to purchase common shares, (3) stock appreciation rights, (4) restricted common shares, (5) other stock-based awards - awards that are valued in whole or in part by reference to, or otherwise based on, the fair market value of the common shares, and (6) cash-based awards to its officers, employees, non-employee directors and other eligible participants. Subject to certain adjustments, the plan authorizes awards to officers, employees, non-employee directors and other eligible participants for up to 1,600,000 common shares, of which 185,670 remain available for grant at March 31, 2014.

On February 18, 2014, the Company awarded 397,500 annual service-based nonqualified stock options at an exercise price of $23.79 (the closing price of our common shares on the New York Stock Exchange on such date) and related fair value of $12.64 that vest ratably over a five-year period. On February 18, 2014, the Company also awarded its executive officers (in the aggregate) a target number of performance share units (“PSU's”) equal to 50,439 PSU's. Each PSU represents a contingent right to receive one common share of the Company if vesting is satisfied at the end of a three-year performance period (the “Performance Period”). The ultimate number of PSU's that will vest and be earned, if any, after the completion of the Performance Period, is based on (1) (a) the Company’s cumulative pre-tax income from operations, excluding extraordinary items, over the Performance Period (weighted 80%) (the “Performance Condition Awards”), and (b) the Company’s total relative shareholder return over the Performance Period compared to the total shareholder return of a peer group of other publicly-traded homebuilders (weighted 20%) (the “Market Condition Awards”) and (2) the participant’s continued employment through the end of the Performance Period, except in the case of termination due to death, disability or retirement or involuntary termination without cause by the Company. The grant date fair value of the Performance Condition Awards and Market Condition Awards was $23.79 and $21.00, respectively. The number of PSU's that vest may increase by up to 50% from the target number based on levels of achievement of the above criteria as set forth in the applicable award agreements and decrease to zero if the Company fails to meet the minimum performance levels for both of the above criteria. If the Company achieves the minimum performance levels for both of the above criteria, 50% of the target number of PSU's will vest and be earned. Any portion of PSU's that do not vest at the end of the Performance Period will be forfeited.

In accordance with ASC 718-10-25-20, Compensation-Stock Compensation, compensation expense related to the awards under the Plan is determined as follows:

Type of Award	Method of Determination of Fair Value	Timing of Recording of Compensation Costs
Stock-Based Service Awards	Black-Scholes Option Pricing Model	Ratably over vesting period
Performance Condition Awards	Closing price of Company's Stock on date of grant	Ratably over the Performance Period (1)
Market Condition Awards	Monte Carlo Simulation Model	Ratably over the Performance Period
(1) ASC 718 - Compensation - Stock Compensation requires that we assess the probability of the attainment of the performance target. Once the Company determines that the target is probable of achievement, the life-to-date expense is recorded immediately and the remaining expense is recorded on a straight-line basis through the end of the Performance Period.

Total recorded compensation expense relating to equity awards granted under the Plan was approximately $0.7 million and $0.5 million for the three months ended March 31, 2014 and 2013, respectively.