Stock Based Compensation
|12 Months Ended|
Dec. 31, 2011
|Stock Based Compensation [Abstract]|
|Stock Based Compensation||
Stock options are granted under the Company's long-term incentive plan and have an exercise price that may not be less than the fair market value of the underlying shares on the date of grant. In general, stock options granted will become exercisable over a period determined by the Compensation Committee which in the past has been a five year life, with the options vesting over a three year period. A portion of the stock options granted in March 2011 and 2010 were vested immediately with the others vesting over a three year period. In addition, stock options will become exercisable upon a change in control, unless provided otherwise by the Compensation Committee. At December 31, 2011, there were 1,382,846 shares subject to options authorized but not granted.
For the years ended December 31, 2011, 2010 and 2009, the Company recognized non-cash compensation expense of $2.2 million, $1.8 million and $1.8 million, respectively. These amounts were recorded as general and administrative expense. Because the Company does not pay significant United States taxes, no amounts were recorded for tax benefits.
A summary of the stock option activity for the year ended December 31, 2011 is provided below:
The intrinsic value of a stock option is the amount by which the current market value of the underlying stock exceeds the exercise price of the option.
As of December 31, 2011, unrecognized compensation costs totaled $0.9 million. The expense is expected to be recognized over a weighted average period of 1.1 years.
A summary of the values of options granted and exercised for each of the years ending December 31, 2011, 2010 and 2009 is provided below:
The Company received cash proceeds of $1.9 million, $0.5 million and $1.8 million from options exercised in 2011, 2010 and 2009, respectively.
During the year ended December 31, 2010, 672,300 options were exercised on a cashless basis, resulting in 120,695 shares being issued to employees and 551,605 shares being added to treasury stock.
The valuation of the options granted is based upon a Black Scholes model. The table below summarizes the assumptions used to value the options issued in 2011 and 2010. There were no options issued in 2009.
The Company has no set policy for sourcing shares for options grants. Historically the shares issued under options grants have been new shares.
The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.
Reference 1: http://www.xbrl.org/2003/role/presentationRef