SHARE-BASED COMPENSATION The Company’s share-based compensation payments to employees are recognized based on their grant-date fair values during the period in which the employee is required to provide services in exchange for the award. Share-based compensation is recognized as a component of selling and administrative expense. Total share-based compensation expense was $3,100 and $4,156 for the three months ended September 30, 2013 and 2012, respectively, and $14,070 and $9,860 for the nine months ended September 30, 2013 and 2012, respectively. Share-based compensation expense for the nine months ended September 30, 2013 included accelerated expense of $2,982 related to executive severance. Options outstanding and exercisable as of September 30, 2013 under the Company’s 1991 Equity and Performance Incentive Plan (as Amended and Restated as of April 13, 2009) and changes during the nine months ended September 30, 2013, were as follows: | | | | | | | | | | | | | | | | | Number of Shares | | Weighted- Average Exercise Price | | Weighted- Average Remaining Contractual Term | | Aggregate Intrinsic Value (1) | | | (in thousands) | | (per share) | | (in years) | | | Outstanding at January 1, 2013 | | 2,668 |
| | $ | 37.56 |
| | | | | Expired or forfeited | | (318 | ) | | 36.97 |
| | | | | Exercised | | (386 | ) | | 26.56 |
| |
| | | Granted | | 338 |
| | 30.46 |
| | | | | Outstanding at September 30, 2013 | | 2,302 |
| | $ | 38.44 |
| | 5 | | $ | 716 |
| Options exercisable at September 30, 2013 | | 1,624 |
| | $ | 41.07 |
| | 3 | | $ | 634 |
| Options vested and expected to vest at September 30, 2013 | | 2,272 |
| | $ | 38.53 |
| | 5 | | $ | 713 |
|
| | (1) | The aggregate intrinsic value (the difference between the closing price of the Company’s common shares on the last trading day of the third quarter of 2013 and the exercise price, multiplied by the number of “in-the-money” options) that would have been received by the option holders had all option holders exercised their options on September 30, 2013. The amount of aggregate intrinsic value will change based on the fair market value of the Company’s common shares. |
| | (2) | The options expected to vest are the result of applying the pre-vesting forfeiture rate assumption to total outstanding non-vested options. |
The following table summarizes information on non-vested RSUs, performance shares and deferred shares for the nine months ended September 30, 2013: | | | | | | | | | | | Number of Shares | | Weighted-Average Grant-Date Fair Value | | | (in thousands) | | | RSUs: | | | | | Non-Vested at January 1, 2013 | | 732 |
| | $ | 33.33 |
| Forfeited | | (107 | ) | | 33.72 |
| Vested | | (252 | ) | | 32.74 |
| Granted | | 238 |
| | 30.10 |
| Non-Vested at September 30, 2013 | | 611 |
| | $ | 32.27 |
| Performance Shares (1): | | | | | Non-Vested at January 1, 2013 | | 729 |
| | $ | 40.41 |
| Forfeited | | (328 | ) | | 38.00 |
| Vested | | (31 | ) | | 35.49 |
| Granted | | 277 |
| | 29.15 |
| Non-Vested at September 30, 2013 | | 647 |
| | $ | 37.04 |
| Director Deferred Shares: | | | | | Non-Vested at January 1, 2013 | | 20 |
| | $ | 40.54 |
| Forfeited | | (3 | ) | | 40.54 |
| Vested | | (17 | ) | | 40.54 |
| Granted | | 31 |
| | 29.73 |
| Non-Vested at September 30, 2013 | | 31 |
| | $ | 29.73 |
| Vested at September 30, 2013 | | 103 |
| | $ | 35.55 |
| Outstanding at September 30, 2013 | | 134 |
| | $ | 34.20 |
|
| | (1) | Non-vested performance shares are based on a maximum potential payout. Actual shares granted at the end of the performance period may be less than the maximum potential payout level depending on achievement of performance share objectives. |
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