Share-Based Compensation

6 Months Ended

Jun. 30, 2012

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

Share-Based Compensation

SHARE-BASED COMPENSATION

Stock Plans

The Company sponsors stock plans (the “Plans”) that enable the Company to grant stock options or other equity based compensation to employees and non-employee directors. Effective March 1, 2011, the Company ceased offering stock options as incentive compensation to employees and non-employee directors, and began to and expects to continue to issue only cash awards or restricted stock units in lieu of stock options. The Company continues to have previously issued stock options that remain outstanding under three separate plans: the 1994 Incentive Plan, the General Employee Plan and the 2004 Equity Incentive Plan. At inception of the plans, approximately 16.4 million shares of common stock were authorized for issuance under the Plans, including approximately 5.0 million, 5.2 million, 1.4 million and 4.8 million authorized shares for the 2012 Equity Incentive Plan, 2004 Equity Incentive Plan, the General Employee Plan and the 1994 Incentive Plan (as amended by the 1998 Incentive Plan), respectively. The 1998 Incentive Plan and the General Employee Plan have been terminated and no additional options, shares or units may be issued under these two terminated plans. Approximately 5.4 million shares were available and reserved for grant under the 2004 Equity Incentive Plan and the 2012 Equity Incentive Plan combined, as of June 30, 2012.

In April 2012, stockholders approved the 2012 Equity Incentive Plan. The number of shares of common stock authorized for issuance under the 2012 Equity Compensation Plan is 5.0 million.

The Compensation Committee of the Company’s Board of Directors administers the Plans and determines the type of equity awards to be issued, the exercise period, vesting period and all other terms of instruments issued under the Plans. Employees’ options and the majority of restricted stock units vest in equal annual installments over a three years period after date of grant. Some restricted stock units vest 100%one year after the date of grant. Officers’ and directors’ options expire ten years after the date of grant. All other employee options expire five to ten years years after the date of grant, depending upon the original grant date. The Company received a minimal amount of cash from the exercise of stock options in the three- and six- month periods ended June 30, 2012. The Company received $0.7 million in cash from the exercise of stock options in the six- month period ended June 30, 2011.

The Company recognizes compensation expense associated with its stock option grants based on their fair market value on the date of grant using a Black-Scholes option pricing model. The Company recognizes stock option expense ratably over the vesting period of the options. If options are canceled or forfeited prior to vesting, the Company stops recognizing the related expense effective with the date of forfeiture. The compensation expense, recorded in General and administrative in the Consolidated Statements of Operations and Comprehensive Income, related to the fair value of stock options during the three- month periods ended June 30, 2012 and 2011, was $25,900 and $61,500, respectively, and $55,300 and $131,100 during the six- month periods ended June 30, 2012 and 2011, respectively. Total compensation expense not yet recognized related to nonvested stock options is $41,500, $32,700 and $500 for the remaining six months of 2012 and for years 2013 and 2014, respectively.

Nonvested Shares

The following table summarizes the status of and changes in the Company’s nonvested shares during the first six months of 2012:

	Nonvested Shares		Weighted-Average Grant-Date Fair Value
Nonvested shares at January 1, 2012	1,502,611		$	10.95
Granted	557,910		13.37
Vested	(751,686	)	6.65
Forfeited	(1,267	)	17.77
Nonvested shares at March 31, 2012	1,307,568		$	14.45
Granted	47,834		10.51
Vested	(3,658	)	20.04
Forfeited	(4,860	)	14.65
Nonvested shares at June 30, 2012	1,346,884		$	14.29

Compensation expense related to grants of nonvested shares was $2.0 million and $1.6 million in the three- month periods ended June 30, 2012 and 2011, respectively, and is included within General and administrative in the Consolidated Statements of Operations and Comprehensive Income. Compensation expense related to grants of nonvested shares was $3.7 million and $3.1 million in the six- month periods ended June 30, 2012 and 2011, respectively.

The following table presents the compensation expense of the nonvested shares outstanding at June 30, 2012, to be recognized over the remaining vesting periods:

(In millions)
Third quarter 2012	$	2.0
Fourth quarter 2012	1.9
2013	5.4
2014	2.8
2015	0.4
Total	$	12.5