Share-Based Compensation

6 Months Ended

Jun. 30, 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 (in thousands):

	Three Months Ended June 30					Six Months Ended June 30
	2013		2012			2013		2012
Stock options and restricted stock awards	$	1,402	$	1,282		$	2,738	$	3,558
Restricted stock unit awards	51		(232		)	182		111
Share-based compensation expense - employees	$	1,453	$	1,050		$	2,920	$	3,669
Share-based compensation expense - non-employee directors	$	113	$	132		$	238	$	263

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 June 30, 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: $3.2 million in the last six months of 2013, $4.8 million in 2014, $3.2 million in 2015 and $0.2 million in 2016 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 5,078 shares and 11,049 shares in the three and six months ended June 30, 2013 and 4,711 shares and 9,703 shares in the three and six months ended June 30, 2012, respectively, to non-employee directors.