Quarterly report pursuant to Section 13 or 15(d)

Share-Based Compensation

v2.4.0.8
Share-Based Compensation
 3 Months Ended
Mar. 31, 2014
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Share-Based Compensation

7. Share-Based Compensation

The Company has share-based compensation plans, which are more fully described in Note 9, Share-Based Compensation, to the Consolidated Financial Statements in the 2013 10-K. During the three months ended March 31, 2014, the Company granted stock awards subject to continued service, consisting of stock appreciation rights, or SARs, with vesting terms fully described in the 2013 10-K.

For the three months ended March 31, 2014 and 2013, share-based compensation expense amounted to $11.0 million and $7.9 million, respectively. As of March 31, 2014, the total unrecognized compensation cost related to all non-vested stock awards was $47.5 million and the related weighted-average period over which it is expected to be recognized is approximately 1.4 years.

 

The following tables summarize the activity under all share-based compensation plans for the three months ended March 31, 2014:

 

Stock Options & SARs

    Awards     Weighted
Average
Exercise
Price		      Weighted
Average
Remaining
Contractual
Term		      Aggregate
Intrinsic
Value(1)		  
     (In thousands)                   (In millions)  

Outstanding at December 31, 2013(2) (3) (4)

      12,143      $ 33.24         5.3 years       $ 552.9   

Granted

      17      $ 69.80         

Exercised

      (303 )    $ 24.21         

Forfeited

      (4 )    $ 46.01         
  

 

 

          

Outstanding at March 31, 2014(2) (3) (4)

      11,853      $ 33.52         5.0 years       $ 307.0   
  

 

 

          

Exercisable at March 31, 2014(2)

      7,521      $ 20.25         3.6 years       $ 279.5   
  

 

 

          

 

(1) The intrinsic value is the amount by which the current market value of the underlying stock exceeds the exercise price of the stock awards.
(2) Includes 1.5 million market condition SARs.
(3) Includes 0.9 million market and performance condition SARs.
(4) Includes 0.4 million performance condition SARs.

The weighted-average grant date fair value of SARs granted during the three months ended March 31, 2014 and 2013 was $28.68 and $11.15, respectively. The total intrinsic value of stock options and SARs exercised during the three months ended March 31, 2014 and 2013 was $14.8 million and $0.3 million, respectively.

 

Incentive Plan and Independent Directors Stock Units

    Shares     Weighted
Average
Grant Date
Fair Value		  
     (In thousands)        

Outstanding and nonvested December 31, 2013

      144.5      $ 14.36   

Granted

      —          —     

Vested

      (130.7 )    $ 9.62   

Forfeited

      —         —    
  

 

 

    

Outstanding and nonvested at March 31, 2014

      13.8      $ 59.34   
  

 

 

    

The total vesting date fair value of stock units which vested during the three months ended March 31, 2014 and 2013, was $8.2 million and $4.3 million, respectively.

The Company recognizes excess tax benefits associated with share-based compensation to shareholders’ equity only when realized. When assessing whether excess tax benefits relating to share-based compensation have been realized, the Company follows the with-and-without approach. Under this approach, excess tax benefits related to share-based compensation are not deemed to be realized until after the utilization of all other tax benefits available to the Company, which are also subject to applicable limitations. As of March 31, 2014 and December 31, 2013, the Company had $16.5 million and $15.4 million, respectively, of unrealized excess tax benefits.