Quarterly report pursuant to Section 13 or 15(d)

Share-Based Compensation

v2.4.0.6
Share-Based Compensation
 3 Months Ended
Mar. 31, 2012
Share-Based Compensation [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 2011 10-K. During the three months ended March 31, 2012, the Company granted stock awards subject to continued service, consisting of stock appreciation rights, or SARs, with vesting terms fully described in the 2011 10-K. There were no stock options granted during the three months ended March 31, 2012 and 2011.

For the three months ended March 31, 2012 and 2011, share-based compensation expense amounted to $7.2 million and $5.6 million, respectively. As of March 31, 2012, the total unrecognized compensation cost related to all non-vested stock awards was $42.6 million and the related weighted-average period over which it is expected to be recognized is approximately 1.8 years.

The following tables summarize the activity under all share-based compensation plans for the three months ended March 31, 2012:

 

                             

Stock Options & SARs

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

Outstanding at December 31, 2011(1)

     11,169     $ 22.54     5.5 years   $ 332.8  

Granted

     20     $ 67.70              

Exercised

     (1,304 )    $ 10.05              

Forfeited

     (14 )    $ 37.29              
   

 

 

                      

Outstanding at March 31, 2012(1)

     9,871     $ 24.26     5.7 years   $ 439.9  
   

 

 

                      

Exercisable at March 31, 2012(2)

     5,726     $ 15.82     4.3 years   $ 303.5  
   

 

 

                      

 

(1) Includes 1.5 million market condition SARs and 0.9 million market and performance condition SARs that were outstanding as of both March, 31, 2012 and December 31, 2011.

 

(2) Includes 1.5 million market condition SARs that were outstanding and exercisable as of March 31, 2012.

The weighted-average grant date fair value of SARs granted during the three months ended March 31, 2012 and 2011 was $25.23 and $15.23, respectively. The total intrinsic value of stock options and SARs exercised during the three months ended March 31, 2012 and 2011 was $69.6 million and $16.9 million, respectively.

 

 

                 

Incentive Plan and Independent Directors Stock Units

   Shares     Weighted
Average
Grant Date
Fair Value 		 
    (In thousands)        

Outstanding and nonvested December 31, 2011

     717.6     $ 12.25  

Granted

     —       $ —    

Vested

     (301.9 )    $ 9.52  

Forfeited

     (0.2 )    $ 6.82  
   

 

 

          

Outstanding and nonvested at March 31, 2012

     415.5     $ 14.24  
   

 

 

          

The total vesting date fair value of stock units which vested during the three months ended March 31, 2012 and 2011, was $18.5 million and $13.6 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, 2012, and December 31, 2011, the Company had $24.4 million and $20.6 million, respectively, of unrealized excess tax benefits.