XML 65 R16.htm IDEA: XBRL DOCUMENT v2.4.0.6
Stock Based Compensation
 6 Months Ended
Jun. 30, 2012
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stock Based Compensation
STOCK BASED COMPENSATION
Available Shares
In March 2011, our board of directors approved the Amended and Restated Republic Services, Inc. 2007 Stock Incentive Plan (the Amended and Restated Plan). The Amended and Restated Plan was ratified by the company’s stockholders in May 2011. We currently have 19.2 million shares of common stock reserved for future grants under our Amended and Restated Plan.
Stock Options
The following table summarizes the stock option activity for the six months ended June 30, 2012:
 
 
Number of
Shares
 
Weighted Average
Exercise
Price per Share
 
Weighted Average
Remaining
Contractual Term
(years)
 
Aggregate
Intrinsic
Value
Outstanding at December 31, 2011
14.3

 
$
26.13

 
 
 
 
Granted
2.9

 
29.70

 
 
 
 
Exercised
(1.6
)
 
22.59

 
 
 
$
11.6

Forfeited or expired
(0.2
)
 
29.37

 
 
 
 
Outstanding at June 30, 2012
15.4

 
$
27.13

 
4.4

 
$
18.3

Exercisable at June 30, 2012
8.3

 
$
25.87

 
3.4

 
$
15.9



During the six months ended June 30, 2012 and 2011, compensation expense for stock options was $7.9 million and $7.1 million, respectively.
As of June 30, 2012, total unrecognized compensation expense related to outstanding stock options was $15.6 million, which will be recognized over a weighted average period of 1.9 years.
Other Stock Awards
The following table summarizes the restricted stock unit and restricted stock activity for the six months ended June 30, 2012:
 
 
Number of
Restricted Stock
Units and Shares of
Restricted Stock
(in thousands)
 
Weighted Average
Grant Date
Fair Value per
Share
 
Weighted  Average
Remaining
Contractual
Term (years)
 
Aggregate
Intrinsic
Value
Other stock awards at December 31, 2011
770.0

 
$
27.17

 
 
 
 
Granted
280.9

 
27.71

 
 
 
 
Vested and issued
(142.7
)
 
26.84

 
 
 
 
Forfeited
(1.3
)
 
29.79

 
 
 
 
Other stock awards at June 30, 2012
906.9

 
$
27.39

 
0.7

 
$
24.0

Vested and unissued at June 30, 2012
523.1

 
$
26.91

 
 
 
 


During the six months ended June 30, 2012, we awarded our non-employee directors 75,000 restricted stock units, which vested immediately. During the six months ended June 30, 2012, we awarded 169,914 restricted stock units to executives that vest in four equal annual installments beginning on the anniversary date of the original grant. In addition, 13,155 restricted stock units were earned as dividend equivalents. The restricted stock units do not carry any voting or dividend rights, except the right to receive additional restricted stock units in lieu of dividends. Also, we granted 22,805 shares of restricted stock to an executive that will vest in February 2013.
The fair value of restricted stock units and restricted stock is based on the closing market price on the date of the grant. The compensation expense related to restricted stock units and restricted stock is amortized ratably over the vesting period.
During the six months ended June 30, 2012 and 2011, compensation expense related to restricted stock units and restricted stock totaled $4.8 million and $5.0 million, respectively.