Stock-Based Compensation

3 Months Ended

Mar. 31, 2012

Stock-Based Compensation [Abstract]

Stock-Based Compensation

Note 9. Stock-Based Compensation

Total stock-based compensation costs were $2.3 million with related tax benefits of $0.7 million during the three-month periods ended March 31, 2012 and March 31, 2011. Stock-based compensation costs are presented in "Selling and administrative expenses" in the Condensed Consolidated Statements of Operations.

Stock Option Awards

A summary of the Company's stock option activity for the three-month period ended March 31, 2012 is presented in the following table (underlying shares in thousands):

	Shares			Outstanding Weighted- Average Exercise Price		Aggregate Intrinsic Value		Weighted- Average Remaining Contractual Life
Outstanding at December 31, 2011		746		$	43.47
Granted		205		$	71.28
Exercised		(55	)	$	32.43
Forfeited		(2	)	$	64.00
Expired or canceled		—		$	—
Outstanding at March 31, 2012		894		$	50.47	$	15,121		4.8 years
Exercisable at March 31, 2012		508		$	37.09	$	13,841		3.6 years

The aggregate intrinsic value was calculated as the difference between the exercise price of the underlying stock options and the quoted closing price of the Company's common stock at March 31, 2012 multiplied by the number of "in-the-money" stock options. The weighted-average estimated grant-date fair value of employee stock options granted during the three-month period ended March 31, 2012 was $25.89. Pre-tax unrecognized stock-based compensation expense for stock options, net of estimated forfeitures, was $7.1 million as of March 31, 2012 and will be recognized over a weighted-average period of 2.3 years.

The total pre-tax intrinsic values of stock options exercised during the three-month periods ended March 31, 2012 and 2011 were $2.2 million and $4.5 million, respectively.

Valuation Assumptions

The fair value of each stock option grant under the Company's Amended and Restated Long-Term Incentive Plan was estimated on the date of grant using the Black-Scholes option-pricing model. The weighted-average assumptions used for the periods indicated are noted in the table below:

	Three Months Ended March  31,
	2012			2011
Assumptions:
Risk-free interest rate		0.7	%		2.0	%
Dividend yield		0.3	%		0.3	%
Volatility factor		47			44
Expected life (in years)		4.1			4.4

Restricted Share Awards

A summary of the Company's restricted share award activity for the three-month period ended March 31, 2012 is presented in the following table (underlying shares in thousands):

	Shares			Weighted- Average  Grant- Date Fair Value (per share)
Nonvested at December 31, 2011		148		$	48.59
Granted		42		$	71.28
Vested		(37	)	$	18.53
Forfeited		(8	)	$	84.56
Nonvested at March 31, 2012		145		$	60.66

The restricted shares granted in the three-month period ended March 31, 2012 were valued at the quoted closing price of the Company's common stock on the grant date. Pre-tax unrecognized compensation expense for nonvested restricted share awards, net of estimated forfeitures, was $4.9 million as of March 31, 2012, which will be recognized over a weighted-average period of 2.3 years. The total fair value of restricted share awards that vested during the three-month periods ended March 31, 2012 and 2011 was $2.4 million and $2.5 million, respectively.