XML 45 R17.htm IDEA: XBRL DOCUMENT v2.4.0.6
Long-Term Cash Incentive Plan
9 Months Ended
Sep. 30, 2012
Long-Term Cash Incentive Plan
Long-Term Cash Incentive Plan
On May 11, 2010, the Company’s Board of Directors approved a Long-Term Cash Incentive Plan (the “2010 LTIP”) to provide a long-term cash bonus opportunity to certain members of the Company’s management. Such Board approval was upon recommendation by the Company’s Compensation, Nominating and Corporate Governance Committee (the “Committee”). The total cumulative payment for all participants (the “Eligible Payment”) is based upon certain performance conditions being met.
The Committee has responsibility for administering the 2010 LTIP and may use its reasonable discretion to adjust the performance criteria or Eligible Payments to take into account the impact of any major or unforeseen transaction or events. One member of the Company's senior management is a participant in the 2010 LTIP. The Eligible Payment will be paid in cash upon completion of the Company’s annual audit for the 2012 fiscal year and upon satisfaction of the vesting conditions as outlined in the 2010 LTIP and, including employer costs, is currently estimated to be approximately $2.7 million. As of September 30, 2012 and December 31, 2011, the Company had accrued compensation expense of approximately $2.5 million and $1.8 million, respectively, for the 2010 LTIP including approximately $0.6 million and $1.1 million, respectively, in the nine months ended September 30, 2012 and year ended December 31, 2011.
The Company is accounting for the 2010 LTIP in accordance with FASB ASC 718. The amount accrued for the 2010 LTIP reflects the Committee’s evaluation of the 2010 LTIP based on forecasts and other information presented to the Committee and are subject to performance in line with forecasts and final evaluation and determination by the Committee. There can be no assurances that the Company’s estimates of the probable outcome will be representative of the actual outcome.