SHARE-BASED EMPLOYEE COMPENSATION
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Dec. 31, 2012
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SHARE-BASED EMPLOYEE COMPENSATION | (H) SHARE-BASED EMPLOYEE COMPENSATION On January 8, 2004, our stockholders approved an incentive plan (the “Plan”) that combined and amended the two previously existing stock option plans. In August 2009, our shareholders approved an amendment to the Plan which, among other things, increased the number of shares available for award under the Plan by 3.0 million shares. Under the terms of the Plan, we can issue equity awards, including stock options, restricted stock units (“RSUs”), restricted stock and stock appreciation rights (collectively, the “Equity Awards”) to employees of the Company and members of the Board of Directors. The Compensation Committee of our Board of Directors specifies the terms for grants of Equity Awards under the Plan. Long-Term Compensation Plans - Options. In June 2012, the Compensation Committee of the Board of Directors approved an incentive equity award of an aggregate of 448,833 stock options pursuant to the Plan to certain individuals that vest ratably over a three year period (the “Fiscal 2013 Employee Stock Option Grant”). The options have a term of ten years from the date of grant. In June 2012, we granted 42,336 options to members of the Board of Directors (the “Fiscal 2013 Board of Directors Grant”). Options granted under the Fiscal 2013 Board of Directors Grant vested six months after issuance, in December 2012, and can be exercised from the date of vesting until their expiration on the tenth anniversary of the date of grant. The Fiscal 2013 Employee Stock Option Grant and Fiscal 2013 Board of Directors Grant were valued at the grant date using the Black-Scholes option pricing model. The weighted-average assumptions used in the Black-Scholes model to value the option awards in fiscal 2013 are as follows:
Stock option expense for all outstanding stock option awards totaled approximately $1.2 million and $3.0 million for the three and nine month periods ended December 31, 2012, respectively, and $0.5 million and $1.1 million of the three and nine month periods ended December 31, 2011, respectively. The expense for the nine month period ended December 31, 2011 reflects a credit of $1.3 million resulting from our updated assessment of future satisfaction of performance conditions associated with certain stock option grants. At December 31, 2012, there was approximately $7.8 million of unrecognized compensation cost related to outstanding stock options, net of estimated forfeitures, which is expected to be recognized over a weighted-average period of 2.6 years. The following table represents stock option activity for the nine month period ended December 31, 2012:
The following table summarizes information about stock options outstanding at December 31, 2012:
At December 31, 2012, the aggregate intrinsic value for outstanding and exercisable options was approximately $66.8 million and $31.8 million, respectively. The total intrinsic value of options exercised during the nine month period ended December 31, 2012 was approximately $14.3 million. Restricted Stock Units. Expense related to RSUs was approximately $0.4 million and $1.2 million for the three and nine month periods ended December 31, 2012, respectively and $0.4 million and $1.1 million for the three and nine month periods ended December 31, 2011, respectively. At December 31, 2012, there was approximately $0.5 million of unearned compensation from RSUs, net of estimated forfeitures, which will be recognized over the next twelve months. Restricted Stock. In June 2012, the Compensation Committee also approved the granting of an aggregate of 57,443 shares of restricted stock to certain key employees at both the corporate and subsidiary level (the “Fiscal 2013 Employee Restricted Share Award”) that will be earned if our ten year average return on equity is at least 15% at March 31, 2013. If this criterion is not met, all of the shares will be forfeited. If the criterion is met, restrictions on the shares will lapse ratably over five years, with the first fifth lapsing on the first anniversary of the grant date, and the remaining restrictions lapsing on March 31, 2014 through 2017. The value of the Fiscal 2013 Restricted Share Award, net of estimated forfeitures, is being expensed over a five year period. In June 2012, we granted 16,251 shares of restricted stock to members of the Board of Directors (the “Board of Directors Fiscal 2013 Restricted Stock Award”). Awards issued under the Board of Directors Fiscal 2013 Restricted Stock Award were earned in December 2012 but will not fully vest until the retirement of each director, which occurs at the date of the annual shareholders meeting after the director reaches seventy-two years of age. Expense related to restricted shares was approximately $0.9 million and $2.5 million for the three and nine month periods ended December 31, 2012, respectively and $0.8 million and $1.9 million for the three and nine month periods ended December 31, 2011, respectively. At December 31, 2012, there was approximately $14.2 million of unearned compensation from restricted stock, net of estimated forfeitures, which will be recognized over a weighted-average period of 4.2 years. The number of shares available for future grants of stock options, restricted stock units, stock appreciation rights and restricted stock under the Plan was 1,289,889 at December 31, 2012. |