(10) Stock Plans

The 2008 Management Equity Incentive Plan provides for various forms of stock-based compensation for eligible employees through May 2018. Management stock-based compensation includes stock options, restricted stock, and performance stock units. The 2008 Non-Employee Directors’ Equity Incentive Plan provides for grants of stock options and restricted stock to non-employee directors through May 2018. Stock options are granted at market value option prices and expire after ten years. Stock options are exercisable beginning three years after the grant date. Stock options are valued at an estimated fair value using the Black Scholes option pricing model. Restricted stock is granted without payment to the company and generally vests three years after the grant date. Restricted stock is valued at the market value of the stock on the grant date. Performance stock units with a performance condition are valued at the market value of the stock on the grant date. Performance stock units with a market condition are valued at an estimated fair value using a Monte Carlo model. The final number of shares to be issued for performance stock units may range from zero to 200% of the target award based on achieving a targeted return on net assets, total shareholder return or other specific performance condition over the performance period. We issue Stock Compensation Trust shares or new shares for stock option exercises, restricted stock grants, and performance stock unit grants.

Stock compensation expense was as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands)	2013		2012		2013		2012
Stock compensation expense	$	2,754	$	2,377	$	7,949	$	5,295
Income tax benefit		1,026		886		2,948		1,934

Stock compensation expense, net of income tax benefit		1,728		1,491		5,001		3,361

A summary of stock option activity for the six months ended June 30, 2013 follows:


	Shares			Weighted Average Exercise Price
Outstanding at January 1		1,784,660		$	33.05
Granted		188,407			49.03
Exercised		(240,219	)		34.79

Outstanding at June 30		1,732,848			34.54

Exercisable at June 30		1,187,815			31.85

A summary of restricted stock activity for the six months ended June 30, 2013 follows:


	Shares			Weighted Average Grant Date Fair Value
Unvested at January 1		417,843		$	31.92
Granted		86,177			48.80
Vested		(166,739	)		26.80
Forfeited		(8,371	)		40.06

Unvested at June 30		328,910			38.73

A summary of performance stock unit activity for the six months ended June 30, 2013 follows:


	Shares			Weighted Average Grant Date Fair Value
Unvested at January 1		137,672		$	35.85
Granted		53,357			57.58
Performance adjustments		3,317			24.63
Vested		(42,413	)		24.84

Unvested at June 30		151,933			46.31