EQUITY

12 Months Ended

Dec. 31, 2012

EQUITY

EQUITY

9. EQUITY

Common Stock

        The Company has paid quarterly dividends on its common stock since January 1999.

Treasury Stock

        During 2010, 2011 and 2012, The Company repurchased the following shares from employees to satisfy tax obligations upon vesting's of restricted stock options:

Year Ended December 31	Shares Repurchased		Aggregate Cost		Average Repurchase Price
2010		1,331	$	43,923	$	33.00
2011		5,470		218,255		39.90
2012		9,175		344,166		37.51

        In addition, in 2010 the Company reissued 790 shares from its treasury to a Director under the Company's Director's Remuneration Plan.

Stock-Based Compensation

        In May 2008, at the Company's Annual Meeting of Stockholders, the Company's stockholders approved the 2008 Equity Incentive Plan (the "2008 Plan"). The 2008 Plan replaced the 1998 Stock Option Plan, the 2005 Restricted Stock Plan and the Director's Remuneration Plan (collectively and including the 2008 Plan the "Share Based Plans"), under which no further awards will be made. The 2008 Plan allows for the grant of stock options, restricted stock, restricted stock units, stock equivalents and awards of shares of common stock that are not subject to restrictions or forfeiture. The 2008 Plan was amended in 2011 to increase the total number of shares reserved to be granted under the 2008 Plan from 1,500,000 to 2,000,000.

Stock Options

        Stock options issued under the Share Based Plans have terms of either seven years or ten years and vest annually and ratably over a period of four years.

        The following table summarizes stock option activity under the Company's share-based plans for the years ended December 31, 2011 and 2012:

Year Ended December 31, 2011
	Number of Options			Weighted Avg. Exercise Price		Weighted Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value
Outstanding at January 1, 2011		625,750		$	32.17
Granted		146,500			33.29
Forfeited		—			—
Exercised		(51,602	)		22.77
Outstanding at December 31, 2011		720,648			33.07		6.79		5,617,669
Vested and expected to vest at December 31, 2011		674,469			32.74		6.66		5,248,211
Exercisable at December 31, 2011		409,149		$	29.44		5.41		4,259,541

Year Ended December 31, 2012
	Number of Options			Weighted Avg. Exercise Price		Weighted Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value
Outstanding at January 1, 2012		720,648		$	33.07
Granted		64,000			37.36
Forfeited		(1,625	)		32.02
Exercised		(62,575	)		23.22
Outstanding at December 31, 2012		720,448			34.31		6.33		3,499,252
Vested and expected to vest at December 31, 2012		713,728			34.28		6.31		3,488,633
Exercisable at December 31, 2012		453,698			32.02		5.27		2,987,705

        The unvested options as of December 31, 2012 represent $2.8 million in unamortized stock-based compensation which will be recognized over a weighted average term of 2.2 years.

        The following table summarizes information relating to options granted and exercised during 2010, 2011 and 2012 (in thousands, except fair value of options granted data):

	2010		2011		2012
Weighted-average of fair value of options granted	$	18.26	$	13.18	$	15.27
Aggregate intrinsic value of options exercised		2,141		822		938
Cash proceeds received upon exercise of options		1,653		1,175		1,452
Tax benefits realized upon exercise of options		594		—		362

        The aggregate intrinsic value represents the total pre-tax intrinsic value (the difference between our closing common stock price on December 31st and the exercise price, multiplied by the number of the in-the-money stock options) that would have been received by the stock option holders had all stock options holders exercised their stock options on December 31st. The amount of aggregate intrinsic value will change based on the fair market value of our common stock.

        The estimated fair value of the options granted were determined using a Black Scholes option pricing model, based on the following weighted average assumptions:

	Options Granted in
	2010	2011	2012
Risk-free interest rate	2.5%	2.1%	1.4%
Expected dividend yield	2.5%	2.7%	2.5%
Expected life	6.25 years	6.25 years	6.25 years
Expected volatility	50%	51%	53%

        The Company recognized $1.1 million, $1.6 million and $1.6 million, respectively, of stock compensation expense relating to the granting of stock options during 2010, 2011 and 2012, respectively.

Restricted Stock

        Restricted stock issued under the Share Based Plans vest ratably over four years.

        The following table summarizes restricted stock activity during the year ended December 31, 2011:

	Shares			Weighted Avg. Fair Value
Unvested as of January 1, 2011		76,287			42.10
Granted		22,925			34.64
Forfeited		—			—
Vested and issued		(30,439	)		38.21
Unvested as of December 31, 2011		68,773			41.39

        The following table summarizes restricted stock activity during the year ended December 31, 2012:

	Shares			Weighted Avg. Fair Value
Unvested as of January 1, 2012		68,773			41.39
Granted		72,083			36.93
Forfeited		(1,499	)		38.60
Vested and issued		(35,504	)		37.58
Unvested as of December 31, 2012		103,853			39.63

        The weighted-average grant date fair value of shares granted for 2011 and 2012 were $34.64 per share and $36.93 per share, respectively. In connection with the grant of restricted shares, the Company recognized $0.9 million, $1.2 million and $1.9 million of compensation expense within its income statements for 2010, 2011 and 2012, respectively.

        The unvested shares as of December 31, 2012 represent $3.0 million in unamortized stock based compensation which will be recognized over a weighted average period of 2.6 years.