Share-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2013

Schedule of calculated fair value of options granted and major assumptions used

The calculated fair value of options granted and major assumptions used in the model at the date of grant are listed below:



	Stock Option Assumptions
	Six Months Ended
	June 30, 2013
Weighted-average grant-date fair value of awards granted during the period	$	15.32
Weighted-average risk-free interest rate	0.97		%
Weighted-average expected price volatility	58.5		%
Expected dividend yield	0.27		%
Expected term in years at the date of grant	5.5

Summary of stock option transactions under the terms of LTSIP

Stock option transactions under the terms of the LTSIP are summarized below:



	Options Outstanding		Weighted- Average Exercise Price		Weighted-Average Remaining Contractual Term	Aggregate Intrinsic Value
			(per share)		(in years)	(in millions)
Outstanding at December 31, 2012	1,697,471		$	25.23
Granted	321,048		30.12
Exercised	(209,500	)	9.60
Forfeited	—		—
Outstanding at June 30, 2013	1,809,019		$	27.90	4.2	$	3.7
Options Exercisable at June 30, 2013	1,231,704		$	26.35	3.3	$	3.7
Unvested Options at June 30, 2013	577,315		$	31.22	6.1	$	—

Restricted Shares and Performance Share Units Activity

Restricted Shares

Restricted share grants typically vest in equal installments over a three-year period from the grant date. The grant date fair value is determined based on the closing bid price of the Company's common stock on the grant date. The total fair value of restricted stock that vested during the six months ended June 30, 2013 and 2012, was $15.0 million and $12.6 million, respectively. The Company realized $0.3 million and $0.1 million of income tax expense for the six months ended June 30, 2013 and 2012, respectively, with no impact to the Company's APIC pool as of June 30, 2013. The weighted average grant-date fair value of restricted stock was $30.10 per share and $30.74 per share for the six months ended June 30, 2013 and 2012, respectively. As of June 30, 2013, $28.8 million of unrecognized compensation cost related to restricted shares granted under the LTSIP is expected to be recognized over a weighted-average vesting period of 2.4 years.

Transactions involving restricted shares under the terms of the LTSIP are summarized below:



	Restricted Shares Outstanding		Weighted- Average Grant-Date Fair Value
			(per share)
Unvested balance at December 31, 2012	1,300,588		$	31.78
Granted	810,248		30.10
Vested	(499,193	)	31.73
Forfeited	(42,739	)	31.07
Unvested balance at June 30, 2013	1,568,904		$	30.94

Performance Share Units

The performance share units' cash payouts are dependent upon the Company’s total shareholder return compared to a group of its peers over a three-year period. The awards are denominated in share units but delivered in cash at the end of the performance period. The weighted average grant-date fair value of the performance share units was $30.12 per share and $30.90 per share for the six months ended June 30, 2013 and 2012, respectively. As of June 30, 2013, $9.7 million of unrecognized compensation cost, representing the fair market value of performance shares granted under the CIP, is expected to be recognized over a weighted-average vesting period of 2.2 years.

Transactions involving performance share units under the terms of the CIP are summarized below:



	Performance Share Units Outstanding		Weighted- Average Grant-Date Fair Value
Unvested balance at December 31, 2012	283,484		$	34.01
Granted	217,573		30.12
Vested	—		—
Forfeited	(1,163	)	30.12
Unvested balance at June 30, 2013	499,894		$	32.33