Stock Plans | 3 Months Ended |
Mar. 31, 2014 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' |
Stock Plans | ' |
Stock Plans |
The Company has employee equity incentive plans (referred to as the “Employee Equity Incentive Plans”) administered by the Compensation Committee of the Company’s board of directors (the “Committee”), which permits the grant of long-term incentives to employees, including stock options, stock appreciation rights, restricted stock awards, restricted stock units, incentive awards, other stock-based awards and dividend equivalents. The Company also has a non-employee director equity plan (the “Non-Employee Director Equity Plan”). The Non-Employee Director Equity Plan together with the Employee Equity Incentive Plans are referred to as the “Equity Incentive Plans.” Awards under these plans are issuable to employees or non-employee directors as applicable. |
During the three months ended March 31, 2014, the Company issued 347,023 stock options under the Employee Equity Incentive Plans and 27,170 stock options under the Non-Employee Director Equity Plan. The options issued under the Employee Equity Incentive Plans vest one-fourth annually beginning one year after the grant date, and the options issued under the Non-Employee Director Equity Plan cliff vest on the first anniversary of the grant date. |
During the three months ended March 31, 2014, the Company issued 118,146 shares of restricted stock under the Employee Equity Incentive Plans and 10,095 shares of restricted stock under the Non-Employee Director Equity Plan. The restricted shares granted under the Employee Equity Incentive Plans cliff vest on the third anniversary of the grant date. The restricted shares granted under the Non-Employee Director Equity Plan cliff vest on the first anniversary of the grant date. Dividend and voting rights applicable to restricted stock are equivalent to the Company’s common stock. |
During the three months ended March 31, 2014, the Company granted 83,151 PSUs under the Employee Equity Incentive Plans to certain key employees. These PSUs vest on December 31, 2016 and are subject to certain performance and market conditions. Each PSU represents the contingent right to receive one share (or more based on maximum achievement) of the Company’s common stock if vesting is satisfied. The PSUs have no voting rights. Dividends, if any, that would have been paid on the underlying shares will be paid as dividend equivalent units on PSUs that vest, on or after the vesting date. At March 31, 2014, the Company had accrued approximately $0.2 million in dividend equivalent units. |
The summary of the activity and status of the Company’s stock option awards for the three months ended March 31, 2014 is as follows: |
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(In thousands, except per share amounts) | Options | | Weighted | | Weighted | | Aggregate |
Average | Average | Intrinsic |
Exercise | Remaining | Value |
Price per | Contractual | |
Share | Term | |
Stock options outstanding at January 1, 2014 | 2,603 | | | $ | 19.45 | | | | | |
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Granted during the period | 374 | | | 13.42 | | | | | |
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Exercised during the period | — | | | — | | | | | |
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Forfeited during the period | — | | | — | | | | | |
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Stock options outstanding at March 31, 2014 | 2,977 | | | $ | 18.69 | | | 7.7 years | | $ | — | |
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Exercisable at March 31, 2014 | 1,465 | | | $ | 21.11 | | | 6.6 years | | $ | — | |
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Total expected to vest after March 31, 2014 | 1,361 | | | $ | 18.16 | | | | | |
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The fair value of each common stock option award granted during the three months ended March 31, 2014 was estimated on the respective grant date using a generally accepted valuation model with assumptions related to risk-free interest rate, expected volatility, expected dividend yield and expected terms. The weighted average grant date fair value per share of stock options granted during the three months ended March 31, 2014 and 2013 was $1.02 and $0.71, respectively. The total intrinsic value of options exercised during the three months ended March 31, 2014 and 2013 was less than $0.1 million. The total fair value of options that vested during the three months ended March 31, 2014 and 2013 was $1.1 million and $1.3 million, respectively. As of March 31, 2014, there was $2.4 million of total unrecognized compensation cost related to unvested stock options, which is expected to be recognized over a weighted average period of 2.3 years. |
The summary of the activity and status of the Company’s restricted stock awards for the three months ended March 31, 2014 is as follows: |
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(In thousands, except per share amounts) | Shares | | Weighted Average Grant | | | | | | |
Date Fair Value per | | | | | | |
Share | | | | | | |
Restricted stock awards outstanding at January 1, 2014 | 325 | | | $ | 17.41 | | | | | | | |
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Granted during the period | 128 | | | 13.5 | | | | | | | |
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Vested during the period | (50 | ) | | 20.47 | | | | | | | |
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Forfeited during the period | (1 | ) | | 12.47 | | | | | | | |
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Restricted stock awards outstanding at March 31, 2014 | 402 | | | $ | 15.8 | | | | | | | |
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At March 31, 2014, there was $3.9 million of total unrecognized compensation cost related to unvested restricted stock awards, which is expected to be recognized over a weighted average period of 2.1 years. The fair value of the restricted stock award is equal to the market value of common stock on the date of grant. |
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The summary of the activity and status of the Company’s performance stock unit awards for the three months ended March 31, 2014 is as follows: |
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(In thousands, except per share amounts) | Units | | Weighted Average Grant | | | | | | |
Date Fair Value per | | | | | | |
PSU | | | | | | |
Performance stock units outstanding at January 1, 2014 | 110 | | | $ | 12.79 | | | | | | | |
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Granted during the period | 83 | | | 9.1 | | | | | | | |
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Vested during the period | — | | | — | | | | | | | |
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Forfeited during the period | — | | | — | | | | | | | |
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Performance stock units outstanding at March 31, 2014 | 193 | | | $ | 11.2 | | | | | | | |
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At March 31, 2014, there was $1.7 million of total unrecognized compensation cost related to unvested PSUs, which is expected to be recognized over a weighted average period of 2.2 years. The fair value of the PSU is estimated at the grant date using a Monte Carlo simulation model. |
In addition to the Equity Incentive Plans discussed above, the Company has an employee stock purchase plan, which commenced in July 2006 with 100,000 shares available. Shares are priced at 85% of the closing price on the last trading day of the month and generally settle on the second business day of the following month. During the three months ended March 31, 2014 and 2013, 2,108 shares and 1,816 shares, respectively, were issued under the employee stock purchase plan. Compensation expense associated with the employee stock purchase plan for the three months ended March 31, 2014 and 2013 was immaterial. |