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Share-Based Compensation
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3 Months Ended |
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Mar. 31, 2012
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| Share-based Compensation [Abstract] | |
| Disclosure of Compensation Related Costs, Share-based Payments [Text Block] |
Share-Based Compensation
We have granted options to purchase common stock to employees, consultants and outside directors under the Cheniere Energy, Inc. Amended and Restated 1997 Stock Option Plan ("1997 Plan") and the Cheniere Energy, Inc. Amended and Restated 2003 Stock Incentive Plan ("2003 Plan"). We recognize our share-based payments to employees in the consolidated financial statements based on their fair values at the date of grant. The calculated fair value is recognized as expense (net of any capitalization) over the requisite service period, net of estimated forfeitures, using either the straight-line or accelerated recognition methods.
For the three months ended March 31, 2012 and 2011, the total share-based compensation expense recognized in our net loss was $2.3 million and $8.0 million, respectively. The effect of a change in estimated forfeitures is recognized through a cumulative adjustment included in share-based compensation cost in the period of change in estimate. We consider many factors when estimating expected forfeitures, including types of awards, employee class and historical experience.
The total unrecognized compensation cost at March 31, 2012 and December 31, 2011 relating to non-vested share-based compensation arrangements granted under the 1997 Plan and 2003 Plan was $7.5 million and $7.7 million, respectively. That cost is expected to be recognized over 4 years, with a weighted average period of 2.2 years.
We received no proceeds from the exercise of stock options in the three months ended March 31, 2012 and 2011.
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