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SHARE-BASED COMPENSATION (Tables)
6 Months Ended
Jun. 30, 2011
SHARE-BASED COMPENSATION  
Assumptions used to estimate fair value of options on the date of grant

 

 

 

 

Three Months Ended

 

Six Months Ended

 

 

 

June 30,

 

June 30,

 

 

 

2011

 

2010

 

2011

 

2010

 

Number of options granted

 

22,000

 

113,000

 

34,000

 

113,000

 

Grant date fair value of options granted per share

 

$

17.76

 

$

20.24

 

$

17.53

 

$

20.24

 

Weighted average exercise price of options granted

 

$

31.16

 

$

35.51

 

$

30.61

 

$

35.51

 

Volatility (1)

 

59

%

57

%

59

%

57

%

Risk free interest rate (2)

 

2.4

%

3.3

%

2.5

%

3.3

%

Expected term (in years) (3)

 

6.3

 

6.3

 

6.3

 

6.3

 

Expected annual dividends

 

None

 

None

 

None

 

None

 

 

 

(1)

 

Expected volatility is based on the historical volatility of our common stock over a preceding period commensurate with the expected term of the award.

 

 

 

(2)

 

The risk free rate for periods within the expected term of the stock option is based on the U.S. Treasury yield curve in effect at the time of grant.

 

 

 

(3)

 

The expected term was calculated as the average between the vesting term and the contractual term, weighted by tranche. We used this simplified method as we do not have sufficient historical data in order to calculate a more appropriate estimate.