Stock Option Plans

12 Months Ended

Dec. 31, 2011

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

Disclosure of Compensation Related Costs, Share-based Payments

Stock Option Plans

Under the Amended and Restated 2005 Stock Incentive Plan (“Stock Incentive Plan”) which became effective in October 2005, the Company could grant stock options, stock appreciation rights (“SARs”), restricted stock units (“RSUs”), stock awards and performance based stock awards to employees and directors. The Stock Incentive Plan reserved 3,421 for issuance. As of December 31, 2011, 632 options and 145 performance based stock awards were outstanding under the Stock Incentive Plan. The Company no longer grants stock options or awards under this plan.

Under the 2009 Omnibus Equity Plan (“Omnibus Equity Plan”) which was approved by the shareholders in May 2009, the Company may grant stock options, SARs, RSUs, restricted stock, performance shares and common shares to employees and directors. The maximum number of shares available for grant is 1,250, which may be treasury shares or unissued shares. As of December 31, 2011, 348 options, 172 restricted stock awards and 56 performance based stock awards were outstanding under the Omnibus Equity Plan.

The Company recognized stock-based compensation of $5,433, $4,933 and $3,279 for the years ended December 31, 2011, 2010 and 2009, respectively. The Company also recognized related tax benefits of $7,879, $796 and $30 for the years ended December 31, 2011, 2010 and 2009, respectively. As of December 31, 2011, total share-based compensation of $3,660 is expected to be recognized over the remaining weighted average period of approximately 2.1 years.

Stock Options

Under the terms of the Omnibus Equity Plan and the Stock Incentive Plan, stock options generally have either a 4 or 5 year graded vesting period, an exercise price equal to the fair market value of a share of common stock on the date of grant, and a contractual term of 10 years.

The following table summarizes the Company’s stock option activity for the years ended December 31, 2011 and 2010:

	December 31, 2011				December 31, 2010
	Number of Shares		Weighted Average Exercise Price		Number of Shares		Weighted Average Exercise Price
Outstanding at beginning of period	1,581		$	11.68	1,491		$	10.39
Granted	150		36.75		250		17.27
Exercised	(724	)	9.72		(143	)	7.42
Expired or forfeited	(29	)	21.27		(17	)	17.35
Outstanding at end of period	978		$	16.69	1,581		$	11.68
Exercisable at end of year*	563		$	11.72	1,118		$	9.46
Participants at end of year	73				65
Available for future grants at end of year	533				795

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* Remaining contractual term of 7.0 years

The intrinsic value of the options outstanding at December 31, 2011 and 2010 was $36,558 and 34,940, respectively. The intrinsic value of the options exercisable at December 31, 2011 and 2010 was $23,801 and $27,190, respectively. The total fair value of options vested was $1,957, $1,755 and $1,421 for the years ended December 31, 2011, 2010 and 2009, respectively. The total intrinsic value of options exercised during the years ended December 31, 2011, 2010 and 2009 was $28,784, $3,327 and $594, respectively.

The Company uses a Black-Scholes option pricing model to estimate the fair value of stock options. The expected volatility and expected term of the options are based on historical information. The risk free rate is based on the U.S. Treasury yield in effect at the time of the grant.

Weighted average grant date fair values of stock options and the assumptions used in estimating the fair values are as follows:

	2011			2010			2009
Weighted average grant date fair value	$	24.33		$	12.03		$	11.02
Expected term (years)	6.25			6.25			6.25
Risk-free interest rate	2.43		%	2.46		%	2.07		%
Expected volatility	72.47		%	77.84		%	74.87		%

Performance Stock Awards

The Company granted 59 performance share units under the Omnibus Equity Plan during 2011 and 164 performance share units under the Stock Incentive Plan in 2009. The performance share units granted in 2011 and 2009 are earned over a 3 year period beginning on January 1, 2011 and 2009, respectively. Total units earned may vary between 0% and 150% of the units granted based on the attainment of pre-determined performance and market condition targets as determined by the Board of Directors. The Company valued the performance stock awards based on market conditions using a Monte Carlo Simulation model that was performed by an outside valuation firm. The fair value of the performance based units was calculated using a Black-Scholes model and the probability of any units being earned is evaluated each reporting period. The weighted average per share fair values were $36.75 and $5.26 for the 2011 and 2009 grants, respectively.

Other

In 2011, 2010 and 2009, the Company granted the non-employee directors stock awards covering 8, 18 and 24 shares, respectively, of common stock that had fair market values of $360, $330 and $300. The stock awards were fully vested on the date of grant. The Company recorded $360, $330 and $300 of compensation expense for the years ended December 31, 2011, 2010 and 2009, respectively.

The Company also granted 59 and 192 restricted stock awards during 2011 and 2010, respectively. These restricted stock awards vest ratably over a three year period and are valued based on fair value on date of grant. The weighted average fair value was $36.75 and $17.85 for 2011 and 2010 grants, respectively. The Company recorded $2,198 and $1,162 of compensation expense related to the restricted stock awards in 2011 and 2010, respectively.