Share-Based Compensation

3 Months Ended

Mar. 31, 2013

Share-based Compensation [Abstract]

Share-Based Compensation

Share-Based Compensation

Set forth below is a summary of share-based compensation expense for option grants, restricted stock awards and restricted stock unit awards included as a component of Selling, general and administrative expenses in the Unaudited Condensed Statements of Consolidated Income for the three months ended March 31 (in thousands):

	2013		2012
Stock options and restricted stock awards	$	1,335	$	2,276
Restricted stock unit awards	130		343
Share-based compensation expense - employees	$	1,465	$	2,619
Share-based compensation expense - non-employee directors	$	125	$	131

No tax benefit for share-based compensation was realized during 2013 or 2012 as a result of a valuation allowance against the deferred tax assets.

At March 31, 2013, there was $11.4 million of unrecognized compensation expense related to unvested share-based awards. That cost is expected to be recognized as follows: $4.5 million in the last nine months of 2013, $4.2 million in 2014 and $2.6 million in 2015 as a component of Selling, general and administrative expenses. Unearned compensation expense is recognized over the vesting period for the particular grant. Total unrecognized compensation cost will be adjusted for future changes in actual and estimated forfeitures, updated vesting assumptions for the performance awards, and fluctuations in the fair value of restricted stock unit awards.

Non-employee directors of the Company are paid a portion of their annual retainer in unrestricted shares of common stock. For purposes of determining the number of shares of common stock to be issued, the 2007 Plan provides that shares are to be valued at the average of the high and low sale price of the Company’s common stock on the NYSE on the last trading date of the quarter. Pursuant to this plan, the Company issued 5,971 shares and 4,992 shares in the three months ended March 31, 2013 and 2012, respectively, to non-employee directors.