Note I - Accounting for Equity-Based Compensation | 9 Months Ended |
Sep. 30, 2014 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | ' |
NOTE i—ACCOUNTING FOR EQUITY-BASED COMPENSATION |
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Grants for Three Months ended September 30, 2013: |
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The weighted-average estimated fair value of restricted stock units (“RSUs”) granted during the three months ended September 30, 2014 and September 30, 2013 was $8.87 and $7.58 per share with the following weighted-average assumptions (annualized percentages): |
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| | Three months ended September 30, 2014 | | | Three months ended September 30, 2013 | | | | | | | | | | | | | | | | | |
Pre-vest cancellation rate | | | 4.57% | | | | 3.66% | | | | | | | | | | | | | | | | | |
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Employee Stock Benefit Plans |
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As of September 30, 2013, the Company had two equity incentive plans from which the Company may grant future equity awards and three expired equity incentive plans from which no future equity awards may be granted but had outstanding equity awards granted prior to expiration. The Company also had one employee stock purchase plan. As of September 30, 2014, approximately 404,000 shares of common stock remain available for grant under the Company’s employee stock purchase plan and 566,000 shares of common stock remain available for grant under the Company’s equity incentive plans. |
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The table below presents a summary of information relating to the Company’s stock option, SAR and RSU grants pursuant to its equity incentive plans: |
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| | Number of Options/SARs/RSUs | | | Weighted Average Exercise Price | | | Weighted Average Remaining Contractual Term (years) (3) | | | Aggregate Value (*) | | | | | | | | | |
| | | in thousands | | | | | | | | | | | | in thousands | | | | | | | | | |
Outstanding at June 30, 2014 | | | 6,173 | | | $ | 7.2 | | | | | | | | | | | | | | | | | |
RSUs granted | | | 5 | | | | - | | | | | | | | | | | | | | | | | |
Options / SARs/RSUs cancelled/forfeited/expired | | | (89 | ) | | $ | 17.49 | | | | | | | | | | | | | | | | | |
Options / SARs / RSUs exercised | | | (153 | ) | | $ | 4.89 | | | | | | | | | | | | | | | | | |
Outstanding at September 30, 2014 (1) | | | 5,937 | | | $ | 7.1 | | | | 3.02 | | | $ | 13,853 | | | | | | | | | |
Exercisable at September 30, 2014 (2) | | | 4,233 | | | $ | 8.28 | | | | 2.35 | | | $ | 5,738 | | | | | | | | | |
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(*) Calculation of aggregate intrinsic value is based on the share price of the Company’s common stock on September 30, 2014 ($8.87 per share). |
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(1) Due to the ceiling imposed on the SAR grants, the outstanding amount equals to a maximum of 4,432 shares of the Company’s common stock issuable upon exercise. SAR grants made prior to January 1, 2009 are convertible for a maximum number of shares of the Company’s common stock equal to 50% of the SAR units subject to the grant. SAR grants made on or after January 1, 2009 and before January 1, 2010 are convertible for a maximum number of shares of the Company’s common stock equal to 75% of the SAR units subject to the grant. SAR grants made on or after January 1, 2010 and before January 1, 2012 are convertible for a maximum number of shares of the Company’s common stock equal to 66.67% of the SAR units subject to the grant. SAR grants made on or after January 1, 2012 are convertible for a maximum number of shares of the Company’s common stock equal to 50% of the SAR units subject to the grant. |
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(2) Due to the ceiling imposed on the SAR grants, the currently exercisable amount equals to a maximum of 2,920 shares of the Company’s common stock exercisable. |
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(3) Calculation of weighted average remaining contractual term does not include the RSUs that were granted, which have an indefinite contractual term. |
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Additional information about stock options, SARs and RSUs outstanding and exercisable at September 30, 2014 with exercise prices above $8.87 per share (the closing price of the Company’s common stock on September 30, 2014) is as follows (in thousands, except per share amounts): |
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| | Exercisable | | | Unexercisable | | | Total | |
Exercise Prices | | Number of Options/ SARs (in thousands) | | | Weighted Average Exercise Price | | | Number of Options/ SARs/RSUs (in thousands) | | | Weighted Average Exercise Price | | | Number of Options/ SARs/RSUs (in thousands) | | | Weighted Average Exercise Price | |
Above $8.87 | | | 1,373 | | | $ | 11.22 | | | | 124 | | | $ | 9.71 | | | | 1,497 | | | $ | 11.09 | |
Less than $8.87 | | | 2,860 | | | $ | 6.86 | | | | 1,580 | | | $ | 3.73 | | | | 4,440 | | | $ | 5.75 | |
Total | | | 4,233 | | | $ | 8.28 | | | | 1,704 | | | $ | 4.17 | | | | 5,937 | | | $ | 7.1 | |
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The Company’s aggregate equity-based compensation expense for the three months ended September 30, 2014 and 2013 totaled $1,296 and $1,045, respectively. The Company did not recognize any income tax benefits relating to its equity-based compensation expense for the three months ended September 30, 2014 and 2013. |
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The Company’s aggregate equity-based compensation expenses for the nine months ended September 30, 2014 and 2013 totaled $4,200 and $3,133, respectively. The Company did not recognize any income tax benefits relating to its equity-based compensation expense for the nine months ended September 30, 2014 and 2013. |
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As of September 30, 2014, there was $3,488 of total unrecognized equity-based compensation expenses related to unvested equity-based compensation awards granted under the Company’s equity incentive plans. This amount is expected to be recognized during the period from the remainder of 2014 through 2018. |