Restricted Stock Units Unvested restricted stock units, for which the board of directors has approved grants to employees, are summarized as follows:  Of the 1,037,146 units unvested at December 31, 2012, 202,662 will vest in June 2013, 180,732 will vest in March 2014, and 145,952 will vest in June  2015 and June 2016, respectively. Remaining units will be distributable based on predetermined dates as elected by the participants, unless  participants forfeit their units through termination of employment in advance of vesting. We have recognized approximately $2.0 million in  compensation expense since grant date, and will record an additional $3.3 million in compensation expense over the remaining vesting period related  to these units. 54,870 stock units vested in 2012 and 314,826 stock units vested in 2011 were distributed or deferred as elected by the recipients under the  provisions of the deferred compensation plan. We recognized approximately $0.2 million and $0.5 million in compensation expense related to these  units in 2012 and 2011, respectively. In connection with the vesting of restricted stock units, employees usually, at their election, choose to satisfy their tax withholding obligations  through net share settlement, pursuant to which the Company withholds the number of shares necessary to satisfy such withholding obligations. As a  result, in 2012 we repurchased 45,341 shares for $0.2 million, or approximately $4.47 per share.  At times, we use commodity forward sales commitments, commodity swap contracts and commodity put and call option contracts to manage our  exposure to fluctuation in the prices of certain metals which we produce. Contract positions are designed to ensure that we will receive a defined  minimum price for certain quantities of our production, thereby partially offsetting our exposure to fluctuations in the market. These instruments do,  however, expose us to other risks, including the amount by which the contract price exceeds the spot price of a commodity, and nonperformance by  the counterparties to these agreements. We utilize financially-settled forward contracts to sell lead and zinc at fixed prices for settlement at approximately the same time that our unsettled  concentrate sales contracts will settle. The settlement of each concentrate contract is based on the average spot price of the metal during the month  of settlement, which may differ from the prices used to record the sale when the sale takes place. The objective of the contracts is to manage the  exposure to changes in prices of zinc and lead contained in our concentrate shipments between the time of sale and final settlement. These contracts  do not qualify for hedge accounting and are marked-to-market through earnings each period. At December 31, 2012, we recorded a current asset of  $2.3 million, which is included in other current assets, for the fair value of the contracts. We recognized a $1.3 million net loss on the contracts during  2012, which is included in sales of products. The net loss recognized on the contracts offset price adjustments on our provisional concentrate sales  related to changes to lead and zinc prices between the time of sale and final settlement. In addition, we utilize financially-settled forward contracts to manage the exposure of changes in prices of zinc and lead contained in our forecasted  future concentrate shipments. These contracts also do not qualify for hedge accounting and are marked-to-market through earnings each period. At  December 31, 2012, we recorded a current asset of $5.6 million, which is included in other current assets, and a non-current liability of $2.5 million,  which is included in other non-current liabilities, for the fair value of the contracts The current asset balance is net of approximately $1.0 million for  contracts that were in a fair value liability position at December 31, 2012. The non-current liability balance is net of approximately $0.1 million for  contracts that were in a fair value asset position at December 31, 2012. We recognized a $10.5 million net loss on the contracts, which includes $18.4  million in gains realized on settled contracts, during 2012. The net loss on these contracts is included as a separate line item under other income  (expense), as they relate to forecasted future shipments, as opposed to sales that have already taken place but are subject to final pricing. The losses  recognized during 2012 are the result of increasing lead and zinc prices during the end of 2012. However, this program is designed to mitigate the  impact of potential future declines in lead and zinc prices from the price levels established in the contracts (see average price information below). The following tables summarize the quantities of base metals committed under forward sales contracts at December 31, 2012 and December 31,  2011: NoTE 10: DErIvATIvE INSTruMENTS Weighted Average  Grant Date  Fair Value Shares per Share  Unvested, January 1, 2012 561,276 $ 6.39 Granted 723,669 $ 4.51 Canceled (16,461) $ 7.29 Distributed (231,338)  $ 6.65  Unvested, December 31, 2012 1,037,146  $ 5.11  Pounds under contract  (in thousands) Average price per pound   December 31, 2012 Zinc Lead Zinc Lead Contracts on provisional sales  2013 settlements 14,991 6,945 $ 0.95 $ 1.00 Contracts on forecasted sales  2013 settlements 35,935 32,794 $ 0.96 $ 1.11 2014 settlements 30,203 33,069 $ 0.98 $ 1.03 2015 settlements 3,307 23,534 $ 1.01 $ 1.06 [ HL:10-K ] F-25