Share-based compensation

Stock plan

We have a stock option and incentive plan for the purpose of attracting and retaining the highest-quality personnel, providing for additional incentives, and promoting the success of our Company by providing employees the opportunity to acquire common stock pursuant to (i) options to purchase common stock and (ii) share awards. In May 2014, we amended and restated our stock option and incentive plan to increase the number of shares reserved for the granting of awards by 2,800,000 shares and extend the term of the stock plan until May 2024, among other amendments. Each share issued that is subject to a full value award reduces the share reserve by two shares (2:1 ratio); therefore, if we issue only full value awards, the 2,800,000 shares added to the reserve would equate to 1,400,000 awards. As of December 31, 2014, a total of 3,093,382 shares were reserved for the granting of future options and share awards under the stock plan.

A summary of the stock option activity under our stock plan and related information for the years ended December 31, 2014, 2013, and 2012, follows:



	Number of Stock Options		Intrinsic Value of Options Exercised
Outstanding as of December 31, 2011	3,600
Granted	—
Exercised	(3,600	)	$	94,968
Forfeited	—
Outstanding as of December 31, 2012	—
Granted	—
Outstanding as of December 31, 2013	—
Granted	—
Outstanding as of December 31, 2014	—

In addition, the stock plan permits us to issue share awards to our employees and non-employee directors. A share award is an award of common stock that (i) may be fully vested upon issuance or (ii) may be subject to the risk of forfeiture under Section 83 of the Internal Revenue Code. Shares issued generally vest over a three-year period from the date of issuance, and the sale of the shares is restricted prior to the date of vesting. The unearned portion of these awards is amortized as stock compensation expense on a straight-line basis over the vesting period. Certain restricted share awards are subject to vesting based upon the satisfaction of levels of performance and market conditions. Failure to satisfy the threshold performance conditions will result in the forfeiture of shares. Forfeiture of share awards with time-based or performance-based restrictions results in a reversal of previously recognized share-based compensation expense. Forfeiture of share awards with market-based restrictions does not result in a reversal of previously recognized share-based compensation expense.

A summary of the share awards activity under our stock plan and related information for the years ended December 31, 2014, 2013, and 2012, follows:



			Number of Share Awards			Weighted Average Grant Date Fair Value Per Share
Outstanding as of December 31, 2011			550,763			$		71.04
Granted			310,240			$		72.85
Vested			(297,669		)	$		68.52
Forfeited			(2,266		)	$		74.30
Outstanding as of December 31, 2012			561,068			$		73.37
Granted			338,915			$		63.74
Vested			(323,594		)	$		71.78
Forfeited			(6,616		)	$		72.96
Outstanding as of December 31, 2013			569,773			$		68.54
Granted			416,954			$		72.25
Vested			(286,681		)	$		72.91
Forfeited			(25,077		)	$		55.72
Outstanding as of December 31, 2014			674,969			$		69.46

	Year Ended December 31,
(In thousands)	2014		2013			2012
Total fair value of share awards vested	$	20,903	$	23,228		$	20,396
Total compensation recognized for awards, net of capitalization	$	13,996	$	15,552		$	14,160
Capitalized stock compensation	$	7,583	$	8,193		$	7,768

The majority of our restricted share awards contain time-based vesting restrictions and the fair value of these awards is calculated based on the market value of the common stock on the grant date. Certain restricted share awards granted in 2014 contain vesting restrictions based upon the satisfaction of levels of performance and market conditions. The fair value of these awards is determined using a Monte Carlo simulation pricing model, using the following assumptions: expected term of 2.5 years (equal to the remaining performance measurement period at the grant date), volatility of 20.0% (approximating a blended average of implied and historical volatilities), dividend yield of 3.4%, and risk free rate of 0.67%. As of December 31, 2014, there was $39.6 million of unrecognized compensation related to non-vested share awards under the stock plan, which is expected to be recognized over the next three years and has a weighted average vesting period of approximately 14 months.