Share-Based Compensation

3 Months Ended

Sep. 30, 2013

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Share-Based Compensation

7. Share-Based Compensation

Stock Option Activity

A summary of our stock option activity for the nine months ended September 30, 2013 is as follows (in thousands):

	Stock Options		Weighted- Average Exercise Price
Outstanding at December 31, 2012	2,181		$	17.20
Exercised	(912	)	$	16.82
Expired	(36	)	$	30.70
Canceled	(24	)	$	16.21
Outstanding at September 30, 2013	1,209		$	17.11
Exercisable at September 30, 2013	472		$	16.69
Vested and expected to vest at September 30, 2013	1,191		$	17.12

There were no stock options granted during the nine months ended September 30, 2013. The aggregate intrinsic value of our stock options exercised during the three and nine months ended September 30, 2013 was $7.5 million and $9.7 million, respectively and the actual tax benefit realized on options exercised during these periods was $3.0 million and $3.8 million, respectively.

At September 30, 2013 there was $4.1 million of total unrecognized compensation cost related to our stock options. This cost is expected to be recognized over a weighted-average period of 2.4 years.

The compensation cost charged against income, for stock options for the three months ended September 30, 2013 and 2012, was $436,000 and $362,000, respectively. The corresponding income tax benefit recognized was $171,000 and $142,000, for the three months ended September 30, 2013 and 2012, respectively.

The compensation cost charged against income, for stock options for the nine months ended September 30, 2013 and 2012, was $1.5 million and $1.1 million, respectively. The corresponding income tax benefit recognized was $599,000 and $433,000, for the nine months ended September 30, 2013 and 2012, respectively.

7.    Share-Based Compensation, continued

Nonvested Stock Activity

During the nine months ended September 30, 2013, 12,052 shares of nonvested common stock were granted to our directors representing their annual grant. Assuming continued service through each vesting date, these awards will vest in three equal annual installments beginning May 2014 to May 2016.

Total compensation cost charged against income related to nonvested stock awards was $1.8 million and $2.1 million, for the three months ended September 30, 2013 and 2012, respectively. The corresponding income tax benefit recognized in the income statement was $700,000 and $805,000, for the three months ended September 30, 2013 and 2012, respectively.

Total compensation cost charged against income related to nonvested stock awards was $6.7 million and $9.1 million, for the nine months ended September 30, 2013 and 2012, respectively. The corresponding income tax benefit recognized in the income statement was $2.6 million and $3.6 million, for the nine months ended September 30, 2013 and 2012, respectively.

At September 30, 2013, there was $12.1 million of unrecognized compensation cost related to these nonvested shares, which will be recognized over a weighted-average period of 2.3 years. A summary of our nonvested stock activity for the nine months ended September 30, 2013 is as follows (in thousands, except per share amounts):

	Shares		Grant Date Weighted- Average Fair Value Per Share
Outstanding at December 31, 2012	1,451		$	19.90
Granted	12		$	24.89
Vested	(362	)	$	20.25
Outstanding at September 30, 2013	1,101		$	19.84

Restricted Stock Unit Activity

During the nine months ended September 30, 2013, we granted 292,478 performance based restricted stock units ("RSUs") to our executive officers representing the right to receive one share of common stock. These RSUs will be earned upon achievement of the applicable performance criteria during the performance periods, from October 1, 2013 through December 31, 2015, as set forth in the 2013 equity performance award agreements. Assuming achievement of the required performance conditions and continued service through each vesting date, these awards will vest in four equal annual installments beginning September 2014 through September 2017.

Total compensation cost charged against income related to RSU awards was $696,000 and $279,000 for the three months ended September 30, 2013 and 2012, respectively. The corresponding income tax benefit recognized in the income statement was $273,000 and $109,000, for the three months ended September 30, 2013 and 2012, respectively.

Total compensation cost charged against income related to RSU awards was $2.1 million and $279,000 for the nine months ended September 30, 2013 and 2012, respectively. The corresponding income tax benefit recognized in the income statement was $806,000 and$109,000, for the nine months ended September 30, 2013 and 2012, respectively.

At September 30, 2013, there was $10.7 million of unrecognized compensation cost related to these RSUs, which will be recognized over a weighted-average period of 3.7 years.