Quarterly report pursuant to sections 13 or 15(d)

Share-Based Compensation

v2.3.0.11
Share-Based Compensation
 9 Months Ended
Sep. 30, 2011
Share-Based Compensation [Abstract]  
Share-Based Compensation
11. Share-based Compensation

2007 Stock Incentive Plan

In 2007, the Company adopted the 2007 Stock Incentive Plan providing for the issuance of a maximum of 2,000,000 shares of common stock in connection with the grant of stock-based or stock-denominated awards. On June 10, 2011, the Company registered an additional 3,000,000 under the 2007 Stock Incentive Plan.

Restricted Shares

Restricted shares entitle the holder to receive, upon meeting certain vesting criteria, a specified number of shares of the Company's common stock. Stock-based compensation cost of restricted shares is measured by the market value of the Company's common stock on the date of grant. Compensation cost associated with certain restricted share grants also takes into account market conditions in its measurement. The following table summarizes restricted share activity for the nine months ended September 30, 2011:

 

     Number of
shares
(In thousands)		     Weighted
average
grant
date fair
value		  

Unvested at January 1, 2011

      2,174      $ 2.51   

Granted

      577      $ 1.65   

Vested

      (116 )    $ 1.99   

Vested shares forgone to satisfy minimum statutory withholding

      (66 )    $ 2.00   
  

 

 

    

Unvested at September 30, 2011

      2,569      $ 2.35   
  

 

 

    

As of September 30, 2011, there was $7.6 million of pre-tax total unrecognized compensation cost related to non-vested restricted shares, which will be adjusted for future forfeitures. The Company expects to recognize such cost over a period of approximately 14 years.

Stock-based compensation expense

Total stock-based compensation expense, which is included in selling, general and administrative expenses, was $419 thousand and $814 thousand for the three months ended September 30, 2011 and 2010, respectively, and was $921 thousand and $1.8 million for the nine months ended September 30, 2011 and 2010, respectively.