COMPENSATION PLANS |
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Sep. 30, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| COMPENSATION PLANS | COMPENSATION PLANS Cash Bonus Plans—At times, we use cash bonus programs that allow participants to receive varying percentages of their aggregate base salary. Any awards under the cash bonus programs are based on a variety of elements related to our performance in certain production, operational, financial, and other areas, as well as the participants' individual performance. We accrue cash bonus expense related to the applicable year's performance. In December 2015 as part of our cost savings initiatives, we suspended our cash bonus programs for 2015 for most employees and have not implemented a cash bonus program for 2016. Equity Incentive Compensation Plan—Our Board of Directors and stockholders adopted a long-term incentive compensation plan called the Intrepid Potash, Inc. Amended and Restated Equity Incentive Plan (the "Plan"). We have issued common stock, restricted shares of common stock, performance units, and non-qualified stock option awards under the Plan. As of September 30, 2016, the following awards were outstanding under the Plan: 755,611 shares of non-vested restricted shares of common stock; non-vested performance units representing 252,100 shares of common stock; and options to purchase 218,857 shares of common stock. As of September 30, 2016, approximately 6.4 million shares of common stock remained available for issuance under the Plan. Non-vested Restricted Shares of Common Stock—The Compensation Committee of the Board of Directors (the "Compensation Committee") has granted restricted shares of common stock under the Plan to executive officers, other key employees, non-employee directors and consultants. The awards contain service conditions associated with continued employment or service and provide voting and regular dividend rights. Upon vesting, the restrictions on the restricted shares of common stock lapse and the shares are considered issued and outstanding. In the first quarter of 2015, the Compensation Committee granted restricted shares of common stock under the Plan to our executive management team and other selected employees as part of an annual equity award program. These awards vest ratably over three years. From time to time, the Compensation Committee grants restricted shares of common stock to newly hired or promoted employees or other employees or consultants who have achieved extraordinary personal performance objectives. These restricted shares of common stock generally vest over one- to four-year periods. In the second quarter of 2016, the Compensation Committee granted 562,010 restricted shares of common stock under the Plan to certain members of our Board of Directors, including one employee director. These restricted shares of common stock vest one year after grant. In measuring compensation expense associated with the grant of non-vested restricted shares of common stock, we use the fair value of the award, determined as the closing stock price for our common stock on the grant date. Compensation expense is recorded monthly over the vesting period of the award. Total compensation expense related to the non-vested restricted shares of common stock awards was $0.7 million and $0.8 million for the three months ended September 30, 2016, and 2015, respectively. Total compensation expense was $1.9 million and $2.5 million for the nine months ended September 30, 2016, and 2015, respectively. These amounts are net of estimated forfeiture adjustments. As of September 30, 2016, there was $2.1 million of total remaining unrecognized compensation expense related to non-vested restricted shares of common stock that will be expensed through 2018. A summary of activity relating to our non-vested restricted shares of common stock for the nine months ended September 30, 2016, is presented below.
Common Stock—In the second quarter of 2015, the Compensation Committee granted shares of common stock under the Plan to our non-employee directors as compensation for service for the period ending on the date of our annual stockholders' meeting for the following year. These shares of common stock were granted without restrictions and vested immediately. Performance Units—In 2015, the Compensation Committee granted at-risk performance units under the Plan to a member of our executive team as part of their annual compensation package. The performance units vest in February 2018, and payout, if any, is based on market-based conditions relating to one-, two- and three-year performance periods beginning on the grant date. No shares were earned under the first one-year performance period. A total of 252,100 shares of common stock are available for future payout under these performance units, subject to continued employment through the vesting date. Non-qualified Stock Options—From 2009 to 2011, the Compensation Committee issued non-qualified stock options under the Plan in the first quarter of each year to our executive management and other selected employees as part of our annual award program. All outstanding stock options are fully vested. Realized tax benefits from tax deductions for exercised options in excess of the deferred tax asset attributable to stock compensation for these options are recorded as "excess tax benefits" when the tax deductions occur. A summary of our stock option activity for the nine months ended September 30, 2016, is as follows:
1The intrinsic value of a stock option is the amount by which the market value exceeds the exercise price as of the end of the period presented. |
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| Summary of Non-Vested Restricted Common Stock Activity | A summary of activity relating to our non-vested restricted shares of common stock for the nine months ended September 30, 2016, is presented below.
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| Summary of Stock Option Activity | A summary of our stock option activity for the nine months ended September 30, 2016, is as follows:
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