STOCK-BASED COMPENSATION

6 Months Ended

Jun. 30, 2013

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION

5.   STOCK-BASED COMPENSATION

The Company reserved 11,390,625 shares of common stock under its 2004 Stock Incentive Plan which expires ten years from the date of approval.  This plan provides for the issuance of various forms of stock incentives, including, among others, incentive and non-qualified stock options and restricted shares.  As of June 30, 2013, there were approximately 1,299,000 shares available for grants.

Stock-based employee compensation expense was as follows for the periods indicated:

	Three months ended				Six months ended
	June 30				June 30
(in thousands)	2013		2012		2013		2012
Pre-tax expense	$	2,146	$	2,001	$	4,251	$	3,902
After tax expense	$	1,363	$	1,271	$	2,699	$	2,478

Stock Options

There were no stock options exercised during 2013 and there are no stock options outstanding since December 31, 2012.  The total intrinsic value of stock options exercised was approximately $1,128,000 during the six months ended June 30, 2012.

Restricted Stock

The following is a summary of the changes in non-vested restricted shares for the six months ended June 30, 2013:

	Shares			Weighted Average Grant-Date Fair Value
Non-vested shares at December 31, 2012		4,494,191		$	8.12
Granted		850,500			13.68
Vested		(1,078,534	)		6.36
Forfeited		(94,807	)		9.73
Non-vested shares at June 30, 2013		4,171,350		$	9.67

The total fair value of shares vested during the six months ended June 30, 2013 was approximately $15,471,000 and during the six months ended June 30, 2012 was approximately $10,695,000.  Tax benefits for compensation tax deductions in excess of compensation expense for restricted shares totaled approximately $3,197,000 for the six months ended June 30, 2013 and $2,172,000 for the six months ended June 30, 2012.  These tax benefits were credited to capital in excess of par value and classified as financing cash flows.

As of June 30, 2013, total unrecognized compensation cost related to non-vested restricted shares was approximately $38,539,000 which is expected to be recognized over a weighted-average period of 3.7 years.