Share-Based Compensation

6 Months Ended

Jun. 30, 2011

NOTE 4: SHARE-BASED COMPENSATION

The Company’s share-based compensation payments to employees are recognized in the statement of income 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 for the three and six months ended June 30, 2011 was $3,181 and $6,617, respectively. Total share-based compensation expense for the three and six months ended June 30, 2010 was $3,139 and $6,365, respectively.

Options outstanding and exercisable as of June 30, 2011 under the Company’s 1991 Equity and Performance Incentive Plan (as Amended and Restated as of April 13, 2009) and changes during the six months ended June 30, 2011, were as follows:


						Weighted-
				Weighted-		Average
				Average		Remaining		Aggregate
	Number of			Exercise		Contractual		Intrinsic
	Shares			Price		Term		Value (1)
	(in thousands)			(per share)		(in years)
Outstanding at January 1, 2011		3,152		$	36.67
Expired or forfeited		(197	)		35.49
Exercised		(148	)		27.06
Granted		432			33.20

Outstanding at June 30, 2011		3,239		$	36.69		5	$	4,754

Options exercisable at June 30, 2011		2,182		$	39.89		4	$	2,331

Options vested and expected to vest (2) at June 30, 2011		3,214		$	36.74		5	$	4,696


(1)		The aggregate intrinsic value (the difference between the closing price of the Company’s common shares on the last trading day of the second quarter of 2011 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 June 30, 2011. 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 tables summarize information on non-vested RSUs, performance shares and deferred shares for the six months ended June 30, 2011:


	Number of			Weighted-Average
	Shares			Grant-Date Fair Value
	(in thousands)
RSUs:
Non-vested at January 1, 2011		594		$	29.06
Forfeited		(33	)		46.70
Vested		(112	)		28.13
Granted		280			32.93

Non-vested at June 30, 2011		729		$	30.63


Performance Shares (1):
Non-vested at January 1, 2011		742		$	31.15
Forfeited		(84	)		30.18
Vested		(176	)		29.00
Granted		246			39.77

Non-vested at June 30, 2011		728		$	34.71


Director Deferred Shares:
Non-vested at January 1, 2011		14		$	33.28
Vested		(14	)		33.28
Granted		31			33.98

Non-vested at June 30, 2011		31		$	33.98

Vested at June 30, 2011		83		$	33.87

Outstanding at June 30, 2011		114		$	33.90


(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.