Shareholders' Equity Transactions

9 Months Ended

Sep. 30, 2011

Shareholders' Equity Transactions [Abstract]

Shareholders' Equity Transactions

Shareholders' Equity Transactions—The 2003 Plan allows the Compensation and Management Development Committee of the Board of Directors (the "Committee") to grant up to 6,800,000 Common Shares in connection with incentive stock options, non-qualified stock options, stock appreciation rights and stock awards (including the use of restricted stock). The maximum aggregate number of Common Shares that may be granted during the term of the 2003 Plan pursuant to all awards, other than stock options, is 1,300,000 Common Shares. The Committee has the authority to determine which employees and directors will receive awards, the amount of the awards and the other terms and conditions of the awards. During the first nine months of 2011, the Committee granted non-qualified stock options to purchase 603,896 Common Shares with a term of ten years at the fair market value of the Company's Common Shares on the date of grant under the 2003 Plan, which vest ratably in annual installments over the four years following the grant date.

Under the terms of the Company's outstanding restricted stock awards, all of the shares granted vest ratably over the four years after the grant date. Compensation expense of $1,610,000 was recognized related to restricted stock awards in the first nine months of 2011 and, as of September 30, 2011, outstanding restricted stock awards totaling 338,199 shares were not yet vested.

As of September 30, 2011, there was $18,013,000 of total unrecognized compensation cost from stock-based compensation arrangements granted under the 2003 Plan, which is related to non-vested options and shares, and includes $5,816,000 related to restricted stock awards. The Company expects the compensation expense to be recognized over a four-year period for a weighted-average period of approximately two years.

Stock option activity during the nine months ended September 30, 2011 was as follows:

	2011			Weighted Average Exercise Price
Options outstanding at January 1		4,484,195		$	29.60
Granted		603,896			24.65
Exercised		(178,119	)		23.16
Canceled		(85,019	)		26.84
Options outstanding at September 30		4,824,953		$	29.21
Options price range at September 30	$	10.70 to
	$	47.80
Options exercisable at September 30		3,267,630
Options available for grant at September 30*		1,833,204

* Options available for grant as of September 30, 2011 reduced by net restricted stock award activity of 584,007.

The following table summarizes information about stock options outstanding at September 30, 2011:

	Options Outstanding						Options Exercisable
Exercise Prices	Number Outstanding At 9/30/11		Weighted Average Remaining Contractual Life		Weighted Average Exercise Price		Number Exercisable At 9/30/11		Weighted Average Exercise Price
$ 10.70—$15.00		19,630		1.0 years	$	10.80		19,130	$	10.70
$ 15.00—$25.00		1,888,963		7.7	$	22.53		923,723	$	22.12
$ 25.01—$35.00		1,554,269		5.9	$	27.53		962,686	$	28.74
$ 35.01—$47.80		1,362,091		2.5	$	40.67		1,362,091	$	40.67
Total		4,824,953		5.6	$	29.21		3,267,630	$	31.74

When stock options are awarded, they generally become exercisable over a four-year vesting period whereby options vest in equal installments each year. Options granted with graded vesting are accounted for as single options. The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model with assumptions for expected dividend yield, expected stock price volatility, risk-free interest rate and expected life. The assumed expected life is based on the Company's historical analysis of option history. The expected stock price volatility is also based on actual historical volatility, and expected dividend yield is based on historical dividends as the Company has no current intention of changing its dividend policy.

The 2003 Plan provides that shares granted come from the Company's authorized but unissued Common Shares or treasury shares. In addition, the Company's stock-based compensation plans allow employee participants to exchange shares for minimum withholding taxes, which results in the Company acquiring treasury shares.

Pursuant to the Company's Board of Directors authorized plan to purchase up to 2,500,000 Common Shares, excluding any shares acquired from employees or directors as a result of the exercise of options or vesting of restricted shares pursuant to the Company's performance plans, the Company purchased a total of 750,422 shares for an aggregate purchase price of $21,551,000 during the first nine months of 2011.