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Stock-Based Compensation
 12 Months Ended
Dec. 31, 2013
Stock-Based Compensation  
Stock-Based Compensation

14. Stock-Based Compensation

        Under the 2012 Equity Incentive Plan (the "2012 Plan") grants of stock options, restricted stock and restricted stock units, and performance share units have been, and will be, determined and administered by the compensation committee of the Board of Directors. Total stock-based compensation expense was $4.0 million, $2.8 million and $3.6 million for the years ended December 31, 2013, 2012 and 2011, respectively. Total income tax benefit recognized for stock-based compensation arrangements was $1.5 million, $1.0 million and $1.3 million for each of the years ended December 31, 2013, 2012 and 2011. We present the benefits of tax deductions in excess of recognized compensation costs ("excess tax benefits") as financing cash flows in the consolidated statements of cash flows.

        Upon the vesting of restricted shares, we have allowed the holder to elect to surrender an amount of shares to meet their minimum statutory tax withholding requirements. These shares are accounted for as treasury stock based upon the value of the stock on the date of vesting.

  • Stock Options

        The following table summarizes activity under our stock option plans (shares in thousands):

 
   Year Ended December 31,  
 
   2013   2012   2011  
Stock Options
  Shares   Weighted-
Average
Exercise Price		   Shares   Weighted-
Average
Exercise Price		   Shares   Weighted-
Average
Exercise Price		  

Outstanding at beginning of year

     1,143   $ 11.59     1,056   $ 10.84     1,061   $ 9.58  

Granted

     156   $ 13.86     190   $ 11.19     142   $ 13.87  

Exercised

     (440 ) $ 11.10     (103 ) $ 3.20     (66 ) $ 4.46  

Forfeited

     (1 ) $ 13.87     —   $ —     —   $ —  

Expired

     —   $ —     —   $ —     (81 ) $ 4.82  
                                 
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Outstanding at end of year

     858   $ 12.24     1,143   $ 11.59     1,056   $ 10.84  
                                 
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                                 

Options exercisable at end of year

     528           810           762        

        The total intrinsic value of options exercised during the years ended December 31, 2013, 2012 and 2011 was $3.0 million, $0.8 million and $0.5 million, respectively. Stock options exercisable as of December 31, 2013 have a weighted-average remaining contractual term of 5.2 years and an aggregate intrinsic value of $4.0 million. As of December 31, 2013, we have 0.9 million options that are vested or expected to vest; these options have a weighted average exercise price of $12.24 per share, have a weighted-average remaining contractual term of 6.5 years and an aggregate intrinsic value of $6.1 million.

        The following table summarizes information about stock options outstanding at December 31, 2013 (shares in thousands):

 
   Options Outstanding   Options Exercisable  
Range of Exercise Prices
  Number
Outstanding
at 12/31/13		   Weighted-
Average
Remaining
Contractual
Life		   Weighted-
Average
Exercise Price		   Number
Exercisable
at 12/31/13		   Weighted-
Average
Exercise Price		  

$6.38 - $7.94

     48     1.38   $ 6.40     48   $ 6.40  

$10.73 - $12.90

     447     6.31   $ 11.66     320   $ 11.84  

$13.15 - $15.03

     363     7.40   $ 13.73     160   $ 13.57  
                             
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

$6.38 - $15.03

     858     6.50   $ 12.24     528   $ 11.88  
                             
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                             

        The fair value of each option award is estimated, based on several assumptions, on the date of grant using the Black-Scholes option valuation model. The fair values and the assumptions used for the 2013, 2012 and 2011 grants are shown in the table below:

 
   Year Ended December 31,
 
   2013   2012   2011

Weighted-average fair value per share of options granted

   $5.06   $4.03   $5.04

Fair value assumptions:

            

Expected dividend yield

   1.82%   1.86%   1.70%

Expected stock price volatility

   46.6%   46.5%   44.2%

Risk-free interest rate

   0.96%   1.17%   2.24%

Expected term

   5.6 years   5.3 years   5.3 years

        Stock options are accounted for as equity instruments, and compensation cost is recognized using the straight-line method over the vesting period. Stock options generally vest over a three-year vesting period. Certain stock option and restricted stock awards provide for accelerated vesting if the employee retires at any time when the sum of their age and years of service is at least 75. As of December 31, 2013, the unrecognized compensation cost related to stock options was $0.7 million, which is expected to be recognized over a weighted-average period of 1.8 years. The total fair value of options vested during the year ended December 31, 2013 was $0.7 million.

        The following table summarizes information about nonvested stock option awards as of December 31, 2013 and changes for the year ended December 31, 2013 (shares in thousands):

Stock Options
  Shares   Weighted-Average
Grant Date
Fair Value		  

Nonvested at December 31, 2012

     333   $ 4.40  

Granted

     156   $ 5.06  

Vested

     (158 ) $ 4.51  

Forfeited

     (1 ) $ 5.04  
             
​ ​ ​ ​ ​ ​ ​ ​

Nonvested at December 31, 2013

     330   $ 4.66  
             
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​
             

        We generally issue treasury shares for stock options and restricted stock, unless treasury shares are not available.

  • Restricted Stock and Restricted Stock Units

        The following table summarizes activity under our restricted stock plans (shares in thousands):

 
   Shares  
Restricted Stock and Restricted Stock Units
  2013   2012   2011  

Unvested at beginning of year

     272     302     312  

Granted

     169     224     231  

Vested

     (240 )   (254 )   (241 )

Forfeited

     (2 )   —     —  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Unvested at end of year

     199     272     302  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
               

        Approximately $1.1 million of compensation expense related to restricted stock and restricted stock units will be recognized over a weighted-average period of 0.8 years. The total fair value of shares vested during the year ended December 31, 2013 was $3.1 million. The weighted-average fair value per share of restricted stock shares and units awarded during 2013, 2012 and 2011 was $13.57, $10.78 and $11.29, respectively. The aggregate intrinsic value of restricted stock vested during the years ended December 31, 2013, 2012 and 2011 was $4.7 million, $3.1 million and $2.6 million, respectively.

  • Performance Stock Units

        Under the 2012 Plan, we granted dollar-denominated performance vesting restricted stock units ("PSUs") which cliff vest at the end of a three-year performance period. The PSUs are subject to two performance measures; 50% of the PSUs are based on the annual performance of our stock price relative to a group of our peers (total shareholder return) and 50% of the PSUs are measured based on meeting or exceeding a pre-determined annual earnings per share target as set by our board of directors (EPS). Depending on the Company's performance in relation to the established performance measures, the awards may vest at zero to a maximum of 2.0 times the dollar-denominated award granted at target. Upon achievement of the necessary performance metrics, the award will be determined in dollars and may be settled in cash or stock based on the market price of the Company's common stock at the end of the performance period, at our discretion.

        Compensation expense for dollar-denominated performance units will ultimately be equal to the final dollar value awarded to the grantee upon vesting, settled either in cash or stock. However, throughout the performance period we must record an accrued expense based on an estimate of that future payout. For units determined by EPS performance, the awards are evaluated quarterly against established targets in order to estimate the liability throughout the vesting period. For units determined by total shareholder return performance, a Monte Carlo simulation model was used to estimate accruals throughout the vesting period. The model simulates our total shareholder return and compares it against our peer group over the three-year performance period to produce a predicted distribution of relative share performance. This is applied to the reward criteria to give an expected value of the total shareholder return element. During 2013, the vesting criteria was set for both 2013 and 2012 grants. There were no performance stock unit grants in 2011. The calculated fair market value as of December 31, 2013 is $2.4 million. The accrued expense related to performance stock units as of December 31, 2013 is $0.9 million. Approximately $1.5 million of compensation expense related to performance stock units will be recognized over a weighted-average period of 1.1 years. No awards vested during the year ended December 31, 2013.

        We generally issue treasury shares for stock compensation purposes, unless treasury shares are not available.