Stock-Based Compensation

3 Months Ended

Mar. 31, 2012

Stock-Based Compensation [Abstract]

STOCK-BASED COMPENSATION

10. STOCK-BASED COMPENSATION

The Company applies the provisions of FASB ASC 718, "Compensation – Stock Compensation," to account for the Company's share-based compensation.  Share-based compensation cost is measured at the grant date based on the calculated fair value of the award and is recognized over the employees' requisite service period.  The Company recorded stock compensation expense of $739,000 and $389,000 for the three month periods ended March 31, 2012 and 2011, respectively, related to restricted stock awards and performance unit awards.

Stock Option Awards

A summary of the option activity as of March 31, 2012 is presented below.

						Weighted
				Weighted		Average
				Average		Remaining		Aggregate
				Exercise		Contractual		Intrinsic
	Shares			Price		Term		Value
Outstanding and Exercisable at January 1, 2012		39,950		$	8.94		2.8
Granted		0			0		0
Canceled		0			0		0
Exercised		(1,450	)		9.30		0
Outstanding and Exercisable at March 31, 2012		38,500		$	8.92		2.6	$754,000

The total intrinsic value of options outstanding and exercisable at March 31, 2011 was $2,529,000.

At March 31, 2012, common stock options outstanding and exercisable under the plans had option prices ranging from $4.10 to $14.77, with a weighted average exercise price of $8.92.  At March 31, 2011, common stock options outstanding and exercisable under the plans had option prices ranging from $3.65 to $14.77, with a weighted average exercise price of $7.47 per share.

The weighted average remaining contractual life of the stock options outstanding at March 31, 2012 and 2011 was 2.6 and 2.8 years, respectively.

Options exercised during the three month periods ended March 31, 2012 and 2011 totaled 1,450 and 10,000 shares, respectively.  The weighted average exercise price per share of the options exercised during the three month periods ended March 31, 2012 and 2011 were $9.30 and $3.29, respectively.  The total intrinsic value of options exercised during the three month periods ended March 31, 2012 and 2011 were $30,000 and $372,000.

Shares issued as a result of stock option exercise generally will be from previously issued shares which have been reacquired by the Company and held as Treasury shares.

Restricted Stock Awards

For the three month periods ended March 31, 2012 and 2011, the Company granted approximately 18,000 and 25,000 shares, respectively, of restricted stock to individuals who are employees.  Additionally, during the three month period ended March 31, 2012, the Company granted approximately 66,000 shares of restricted stock to an employee director as follows:

					Aggregate
			Grant Date		Fair
Grant Date	Units		Fair Value		Value		Vesting Date
March 15, 2011		24,836	$	38.46	$	955,193	March 15, 2015
February 1, 2012		66,000		30.15		1,989,900	February 1, 2016
March 6, 2012		18,347		27.49		504,359	March 6, 2016

These forfeitable Restricted Stock Awards time-vest after a four year holding period, unless indicated otherwise by the underlying Restricted Stock Agreement.  Shares issued as a result of Restricted Stock Awards generally are previously issued shares which have been reacquired by the Company and held as Treasury shares or authorized but previously unissued common stock.

Certain awards of restricted stock included in the above table provide for partial vesting over a period up to the vesting date listed.

Performance Unit Awards

Annually, under separate three year long-term incentive plans, pursuant to the Omnibus Plan, the Company granted performance units during the three month periods ended March 31:

							Aggregate
					Grant Date		Fair
Incentive Plan		Grant Date	Units		Fair Value		Value		Vesting Date
	2010 – 2012	March 2, 2010		36,541	$	31.83	$	1,163,100	March 2, 2013
	2011 – 2013	March 15, 2011		34,002		38.46		1,307,717	March 15, 2014
	2012 – 2014	March 6, 2012		43,042		27.49		1,183,225	March 6, 2015

In addition, on March 15, 2011 the Company awarded, pursuant to the Omnibus Plan, 1,500 special performance units to an employee director and 1,000 special performance units to an executive.  Based on the satisfaction of the performance conditions, these units were converted, net of shares withheld for applicable income tax purposes, into 1,436 and 957 shares, respectively, of the Company's common stock on March 6, 2012.  The grant date fair value of these awards was $38.46 and the aggregate fair value was $58,000 and $38,000, respectively.

Performance Units are subject to forfeiture and will be converted into common stock of the Company based upon the Company's performance relative to performance measures and conversion multiples as defined in the underlying plan.  The aggregate fair value in the above table is based upon reaching 100% of the performance targets as defined in the underlying plan.

The Company recorded compensation expense of $739,000 and $389,000, respectively, for the three month periods ended March 31, 2012 and 2011.

Shares issued as a result of restricted stock awards generally are previously issued shares which have been reacquired by the Company and held as Treasury shares or authorized but previously unissued common stock.

The excess tax benefit realized for the tax deduction from stock-based compensation approximated $48,000 and $152,000 for the three months ended March 31, 2012 and 2011, respectively.  This excess tax benefit is included in cash flows from financing activities in the Condensed Consolidated Statements of Cash Flows.