Stock-Based Incentive Plans

6 Months Ended

Jun. 30, 2014

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

Stock-Based Incentive Plans

Stock-Based Incentive Plans

The Company currently has one stock-based incentive plan, which incorporates and supersedes its two previous plans (see Note 1 “Basis of Presentation — Accounting for Stock-Based Compensation”). Participants are granted stock-based awards only if the applicable Company-wide or profit-center operating goals, or both, established by the Compensation and Leadership Development Committee of the Board of Directors at the beginning of the year, are met. Certain participants may have additional goals based on strategic initiatives of the Company.

The fair value of each restricted stock unit award is estimated on the date of the award based on the closing market price of the underlying stock on the day preceding the date of the award. On February 3, 2014, 342,950 restricted stock units were awarded, including 9,975 awarded to the Company’s directors who are not employees, at an estimated value of $30.98 per share, based on the closing price on January 31, 2014. The restrictions on these awards generally lapse one quarter on the date of the award and one quarter on each of the first, second and third anniversaries of the date of the award.

The following table summarizes the Company’s unvested restricted stock unit activity for the six months ended June 30, 2014: 

	Shares		Weighted- Average Price		Aggregate Intrinsic Value *
Unvested Restricted Stock Units (RSUs)	(in thousands)				(in thousands)
Outstanding at January 1, 2014	448		$	32.48
Awarded	343
Vested	(249	)
Forfeited	(1	)
Outstanding at June 30, 2014	541		$	31.68	$	19,669
Outstanding and expected to vest at June 30, 2014	528		$	31.69	$	16,745

* The intrinsic value is calculated using the closing price per share of $36.36 as reported by the New York Stock Exchange on June 30, 2014.

Based on the market value on the award date, the total intrinsic value of vested restricted stock units during the six-month periods ended June 30, 2014 and 2013, was $8.0 million and $5.5 million, respectively.

No stock options were granted in 2013 or the first six months of 2014. The following table summarizes the Company’s stock option activity for the six months ended June 30, 2014: 

	Shares		Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life	Aggregate Intrinsic Value *
Non-Qualified Stock Options	(in thousands)				(in years)	(in thousands)
Outstanding at January 1, 2014	1,021		$	29.35
Exercised	(92	)
Forfeited	(5	)
Outstanding at June 30, 2014	924		$	29.40		$	6,436
Outstanding and expected to vest at June 30, 2014	916		$	29.40	3.5	$	6,378
Exercisable at June 30, 2014	669		$	29.30	3.5	$	4,726

* The intrinsic value represents the amount, if any, by which the fair market value of the underlying common stock exceeds the exercise price of the stock option, using the closing price per share of $36.36 as reported by the New York Stock Exchange on June 30, 2014.

The total intrinsic value of stock options exercised during the six-month periods ended June 30, 2014 and 2013, was $0.5 million and $0.2 million, respectively.

A summary of the status of unvested stock options as of June 30, 2014, and changes during the six months ended June 30, 2014, are presented below: 

	Shares		Weighted- Average Grant-Date Fair Value
Unvested Stock Options	(in thousands)
Unvested at January 1, 2014	448		$	10.31
Vested	(193	)	10.29
Unvested at June 30, 2014	255		$	10.33

As of June 30, 2014, $22.3 million of total unrecognized compensation cost was related to unvested stock-based compensation arrangements under the 2011 Incentive Plan for awards made through February 2014 and those expected to be made through February 2015. The portions of this cost related to stock options and restricted stock units awarded through February 2014 are expected to be recognized over a weighted-average period of 1.9 years.