Stock-Based Compensation Plans

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

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, excluding the present value of the dividends that the restricted stock units do not participate in. On February 2, 2015, 339,047 restricted stock units were awarded, including 8,550 awarded to the Company’s independent directors, at an estimated value of $32.64 per share, the closing price on January 31, 2015. The restrictions on these awards generally lapse one quarter on each of the date of the award and the first, second and third anniversaries of the date of the award. Restrictions on awards to four executive officers of the Company lapse three quarters on the third anniversary of the date of the award and one quarter on the fourth anniversary of the date of the award.

The following table summarizes the Company’s unvested restricted stock unit activity for the year ended December 31, 2014:



	Shares (in thousands)		Weighted- Average Price		Aggregate Intrinsic Value * (in thousands)
Unvested Restricted Stock Units (RSUs)	Shares (in thousands)		Weighted- Average Price		Aggregate Intrinsic Value * (in thousands)
Outstanding at January 1, 2014	448		$	32.48	$	16,447
Awarded	343		30.98
Vested	(284	)	32.06
Forfeited	(3	)	31.68
Outstanding at December 31, 2014	504		$	31.67	$	17,423
Outstanding and expected to vest at December 31, 2014	492		$	31.68	$	15,582

* The intrinsic value is calculated using the closing price per share of $34.60 as reported by the New York Stock Exchange on December 31, 2014.

The total intrinsic value of restricted stock units vested during the years ended December 31, 2014, 2013 and 2012 was $9.1 million, $5.7 million and $3.1 million respectively, based on the market value on the award date.

No stock options were granted under the 2011 Plan in 2012, 2013 or 2014.

The following table summarizes the Company’s stock option activity for the year ended December 31, 2014:



	Shares (in thousands)		Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life	Aggregate Intrinsic Value* (in thousands)
Non-Qualified Stock Options	Shares (in thousands)		Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life	Aggregate Intrinsic Value* (in thousands)
Outstanding at January 1, 2014	1,021		$	29.35	4.0	$	7,404
Exercised	(161	)	$	28.54
Forfeited	(5	)	$	32.92
Outstanding at December 31, 2014	855		$	29.48	3.1	$	4,381
Outstanding and expected to vest at December 31, 2014	847		$	29.48	3.1	$	4,341
Exercisable at December 31, 2014	756		$	29.45	3.0	$	3,889

* The intrinsic value represents the amount by which the fair market value of the underlying common stock exceeds the exercise price of the option, using the closing price per share of $34.60 as reported by the New York Stock Exchange on December 31, 2014.

The total intrinsic value of stock options exercised during the three years ended December 31, 2014, 2013 and 2012, was $0.8 million, $2.6 million and $1.1 million, respectively.

A summary of the status of unvested stock options as of December 31, 2014, and changes during the year ended December 31, 2014, is presented below:



	Shares (in thousands)		Weighted- Average Grant-Date Fair Value
Unvested Options	Shares (in thousands)		Weighted- Average Grant-Date Fair Value
Unvested at January 1, 2014	448		$	10.31
Vested	(348	)	$	10.31
Forfeited	(1	)	$	10.33
Unvested at December 31, 2014	99		$	10.33

As of December 31, 2014, total unrecognized compensation cost of $14.8 million was related to unvested stock-based compensation arrangements expected to be awarded under the 2011 Plan and granted under the 1994 Plan. This cost is expected to be recognized over a weighted-average period of 1.8 years. Stock options granted under the 1995 Plan are fully vested and the associated expense was fully recognized as of the date of grant.

The Company also maintains a Stock Bonus Plan whereby it awards shares to employees, who do not otherwise participate in one of the Company’s stock-based incentive plans. The number of shares awarded, as well as the period of service, is determined by the Compensation and Leadership Development Committee of the Board. In 2014, 2013 and 2012, the Company issued, and committed to issue, 16 thousand, 11 thousand and 9 thousand shares, respectively, which resulted in pre-tax compensation charges of $0.6 million, $0.7 million and $0.5 million for the years ended December 31, 2014, 2013 and 2012, respectively. These employees are also awarded cash bonuses, which are included in these charges, to compensate for their income taxes payable as a result of the stock bonuses. Shares have been issued under this plan in the year following the year in which the employee reached the tenth anniversary of employment with the Company.