Note 15 - Stock-Based Compensation

12 Months Ended

Dec. 31, 2011

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

15.  Stock-based compensation

The Company incurred stock-based compensation expense of $2,335 during the year ended December 31, 2011 (2010 - $2,761; 2009 - $5,424).

Company stock option plan

The Company has a stock option plan for certain officers and key full-time employees of the Company and its subsidiaries, other than its CEO.  Options are granted at the market price for the underlying shares on the date of grant.  Each option vests over a four-year term, expires five years from the date granted and allows for the purchase of one Subordinate Voting Share.  All Subordinate Voting Shares issued are new shares.  As at December 31, 2011, there were 517,750 options available for future grants.

Grants under the Company’s stock option plan are equity-classified awards.  Stock option activity for the years ended December 31, 2011, 2010 and 2009 was as follows:

	Number of options			Weighted average exercise price		Weighted average remaining contractual life (years)		Aggregate intrinsic value
Shares issuable under options - December 31, 2008		1,580,755		$	18.24
Granted		321,000			11.85
Exercised		(246,755	)		10.11
Shares issuable under options - December 31, 2009		1,655,000		$	18.22
Granted		520,000			19.15
Exercised		(311,950	)		14.59
Forfeited		(12,750	)		16.23
Shares issuable under options - December 31, 2010		1,850,300		$	19.03
Granted		308,000			30.78
Exercised		(262,750	)		19.87
Shares issuable under options - December 31, 2011		1,895,550		$	20.83	2.26	$	13,048
Options exercisable - End of period		951,350		$	20.66	1.41	$	6,672

As at December 31, 2011, the range of option exercise prices was $11.74 to $33.25 per share.  Also as at December 31, 2011, the aggregate intrinsic value and weighted average remaining contractual life for in-the-money options vested and expected to vest were $13,048 and 2.0 years, respectively.

The following table summarizes information about option exercises during years ended December 31, 2011, 2010 and 2009:

	2011		2010		2009
Number of options exercised		262,750		311,950		246,755
Aggregate fair value	$	8,510	$	6,741	$	4,070
Intrinsic value		3,320		2,190		1,544
Amount of cash received		5,190		4,551		2,526
Tax benefit recognized	$	1,119	$	699	$	536

As at December 31, 2011, there was $3,632 of unrecognized compensation cost related to non-vested awards which is expected to be recognized over the next 4 years.  During the year ended December 31, 2011, the fair value of options vested was $2,606 (2010 - $2,434; 2009 - $2,140).

The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model, utilizing the following weighted average assumptions:

	2011			2010			2009
Risk free rate		1.0	%		1.4	%		1.3	%
Expected life in years		4.75			4.75			4.75
Expected volatility		39.4	%		39.8	%		38.8	%
Dividend yield		0.0	%		0.0	%		0.0	%
Weighted average fair value per option granted	$	10.73		$	6.85		$	4.14

The risk-free interest rate is based on the implied yield of a zero-coupon US Treasury bond with a term equal to the option’s expected term.  The expected life in years represents the estimated period of time until exercise and is based on historical experience.  The expected volatility is based on the historical prices of the Company’s shares over the previous four years.  The dividend yield assumption is based on the Company’s present intention to retain all earnings in respect of the Common Shares.

Subsidiary stock option plans

The Company has stock option plans at its Commercial Real Estate subsidiary entitling the holders to acquire up to a 16.1% interest in the subsidiary.  Grants under the subsidiary stock option plans are liability classified awards because the underlying stock is also classified as a liability (see note 13).  The fair value of the liability relating to these awards is calculated each period using the Black-Scholes option pricing model.  The fair value of the liability related to these awards as at December 31, 2011 was nil (2010 – nil) and compensation expense recognized related to the awards for the year ended December 31, 2011 was nil (2010 – nil).