Share Based Compensation

3 Months Ended

Mar. 31, 2012

Share Based Compensation [Abstract]

Share Based Compensation

2.   Share Based Compensation

Share-based compensation expense was $1.0 million for both the three months ended March 31, 2012 and 2011 and was related to restricted stock units only as the Company did not have any share-based compensation expense for stock options.

Share-based compensation expense is based on the value of the portion of share-based payment awards that is ultimately expected to vest. Forfeitures are estimated at the time of grant in order to estimate the amount of share-based awards that will ultimately vest. The forfeiture rate is based on historical rates. Share-based compensation expense recognized in the Company's Consolidated Statements of Income for the three month period ended March 31, 2012 includes compensation expense for share-based payment awards based on the estimated grant-date fair value. Since share-based compensation expense recognized in the Consolidated Statements of Income for the three month period ended March 31, 2012 is based on awards ultimately expected to vest, it has been reduced for estimated forfeitures.

The Company maintains the 1994 Stock Incentive Plan and 2003 Stock Incentive Plan.

The Company was authorized to grant options for up to 2,362,500 shares under its 1994 Stock Incentive Plan. The Company has granted options for 2,691,225 shares and has had cancellations of 397,811 shares through March 31, 2012. There are no remaining stock options available to grant under this plan. The options granted under this plan generally became exercisable over a five-year period for incentive stock options and six months for nonqualified stock options and have a maximum term of ten years.

The 2003 Stock Incentive Plan was amended in 2005 to allow the issuance of Restricted Stock Units (the "Units") to eligible employees and non-employee directors. The Units are payable in shares of the Company's common stock upon vesting. For directors, the Units typically vest annually over three years following the date of their issuance. For officers and employees, the Units typically vest annually over five years following the date of their issuance.

The Company may grant options and Units for up to 1,875,000 shares under the 2003 Stock Incentive Plan. The Company has granted options for 475,125 shares and Units for 961,369 shares under this plan through March 31, 2012. There have been cancellations of 134,793 shares and Units associated with this plan through March 31, 2012. The options under this plan have a life of ten years.

During the three months ended March 31, 2012 and 2011, the Company issued Units to certain directors, officers and employees with weighted average grant date fair values and Units issued as indicated in the table below. The Company records compensation expense for the amount of the grant date fair value on a straight line basis over the vesting period.

Share-based compensation expense reduced the Company's results of operations as follows (dollars in thousands, except per share amounts):

	Three Months Ended March 31,
	2012			2011
Share-based compensation expense recognized:
General and administrative, restricted stock units	$	981		$	972
Related deferred income tax benefit		(391	)		(387	)
Decrease in net income	$	590		$	585
Decrease in basic earnings per share	$	0.02		$	0.02
Decrease in diluted earnings per share	$	0.02		$	0.02

The amounts above include the impact of recognizing compensation expense related to non-qualified stock options.

As of March 31, 2012, all stock options were vested, consequently there was no unrecognized compensation cost related to   them. The aggregate intrinsic value of stock options exercised was $129,000 and $3.8 million for the three months ended March 31, 2012 and 2011, respectively.

As of March 31, 2012, there was approximately $9.7 million of total unrecognized compensation cost related to non-vested Units granted under the 2003 Stock Incentive Plan. That cost is expected to be recognized over a weighted average period of 3.3 years.

The following is a summary of stock option activity:

	Three Months Ended March 31, 2012
	Number of Options			Weighted Average Exercise Price
Outstanding, December 31, 2011		259,150		$	15.80
Options exercised		(6,875	)	$	12.17
Outstanding, March 31, 2012		252,275		$	15.89
Exercisable, March 31, 2012		252,275		$	15.89

The following is a summary of Unit activity:

	Three Months Ended March 31, 2012
	Number of Units			Weighted Average Grant Fair Value
Non-vested Units at December 31, 2011		362,727		$	31.43
Granted		91,504			31.10
Forfeited		(12,384	)		31.71
Vested		(80,483	)		30.71
Non-vested Units at March 31, 2012		361,364		$	31.49

The following table summarizes information regarding options outstanding and options exercisable at March 31, 2012:

		Outstanding and Exercisable
Range of Grant Prices		Number of Options		Average Remaining Contractual Life (Years)		Weighted Average Exercise Price		Aggregate Intrinsic Value (000s)
	$2.98 - $4.58		51,975		0.44	$	3.43	$	1,514
	$16.89 - $18.80		113,950		1.59	$	17.06	$	1,766
	$21.46 - $22.67		86,350		2.37	$	21.86	$	924
			252,275		1.62	$	15.89	$	4,204

The following table summarizes information regarding Units outstanding at March 31, 2012:

		Outstanding
Range of Grant Prices		Number of Units		Average Remaining Contractual Life (Years)		Weighted Average Grant Fair Value
	$16.53 - $28.10		149,069		2.02	$	21.02
	$30.99 - $39.43		128,075		3.79	$	33.98
	$40.73 - $45.70		79,000		2.94	$	44.66
	$66.35 - $81.18		5,220		0.22	$	70.42
			361,364		2.82	$	31.49