STOCK-BASED COMPENSATION

3 Months Ended

Mar. 31, 2014

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION

5. STOCK-BASED COMPENSATION

The Company reserved 11,390,625 shares of common stock under the 2004 Stock Incentive Plan with a term of 10 years expiring in April 2014.  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 March 31, 2014, there were 742,800 shares available for grant.  At the annual meeting held on April 22, 2014, stockholders approved the 2014 Stock Incentive Plan authorizing the issuance of 8,000,000 shares.  All future equity compensation awards by the Company will be issued under the 2014 Plan.

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

	Three months ended
	March 31
(in thousands)	2014		2013
Pre-tax expense	$	2,320	$	2,105
After tax expense	$	1,473	$	1,337

Restricted Stock

The following is a summary of the changes in non-vested restricted shares for the three months ended March 31, 2014:

	Shares			Weighted Average Grant-Date Fair Value
Non-vested shares at December 31, 2013		4,114,800		$	9.67
Granted		657,375			18.84
Vested		(1,106,250	)		7.19
Forfeited		(46,025	)		10.18
Non-vested shares at March 31, 2014		3,619,900		$	12.05

The total fair value of shares vested during the three months ended March 31, 2014 was $20,634,000 and during the three months ended March 31, 2013 was $15,471,000.  Tax benefits for compensation tax deductions in excess of compensation expense for restricted shares totaled $4,455,000 for the three months ended March 31, 2014 and $3,232,000 for the three months ended March 31, 2013.  These tax benefits were credited to capital in excess of par value and classified as financing cash flows.

As of March 31, 2014, total unrecognized compensation cost related to non-vested restricted shares was $44,679,000 which is expected to be recognized over a weighted-average period of 3.8 years.