(7)                     Share-Based Compensation

Stock option activity for the three months ended March 31, 2012 is as follows:

During the three-month period ended March 31, 2012, the Company issued options to purchase 217 shares of common stock under the 2009 Incentive Plan to the Company’s new executive officers. These options were issued with a weighted-average exercise price of $15.65 per share and a weighted-average grant date fair value of $7.66 per share. All of the options issued have an option termination date of ten years from the option grant date.

The fair value of each option grant was estimated on the date of the grant using the Black-Scholes option-pricing model with the following weighted-average assumptions for the three-month period ended March 31, 2012:

Expected option lives and volatilities are based on historical data of the Company. The risk-free interest rate is calculated as the average U.S. Treasury obligation rate that corresponds with the option life.

The Company’s outstanding stock options include both time-based stock options, which vest over differing periods ranging from the date of issuance up to 36 months from the option grant date, and performance-based stock options, which vest upon achieving operating income margins of six, eight and ten percent as reported in four of five consecutive quarters over the term of the options.

Share-based compensation expense from time-based stock options for the three-month period ended March 31, 2012 and 2011 was approximately $313 and $88, respectively; the related tax benefit was approximately $125 and $34, respectively. As of March 31, 2012 and December 31, 2011, the unrecognized share-based compensation expense related to the grants described above was $1,856 and $607, respectively. As of March 31, 2012, the remaining compensation cost is expected to be recognized over the weighted-average period of approximately 2.27 years.

The Company recorded shared-based compensation expense of $323 and a related tax benefit of approximately $128 for the three months ended March 31, 2012 for the performance-based stock options. No share-based compensation costs for performance-based stock options were recorded for the same period in 2011. As of March 31, 2012 and December 31, 2011, the unrecognized share-based compensation expense related to these options was approximately $329 and $652, respectively. As of March 31, 2012, the remaining compensation cost is expected to be recognized over a weighted-average period of approximately 0.25 years.

At March 31, 2012, the aggregate intrinsic value of outstanding time-based and performance-based stock options to purchase 1,554 shares of common stock, exercisable time-based and performance-based stock options to purchase 786 shares of common stock and time-based and performance-based stock options to purchase 723 shares of common stock that are expected to vest was $8,803, $5,616 and $2,985, respectively. At December 31, 2011, the aggregate intrinsic value of outstanding options to purchase 1,374 shares of common stock, the exercisable options to purchase 772 shares of common stock, and options to purchase 602 shares of common stock expected to vest was $7,757, $4,819 and $2,732, respectively.