Equity Compensation

6 Months Ended

Jun. 30, 2011

Equity Compensation

Equity Compensation

4. Equity Compensation

The stock-based compensation expense and related income tax benefit recognized in our Condensed Consolidated Statements of Income in the periods indicated were as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2011		2010		2011		2010
Stock-based compensation expense		$4,758		$4,186		$8,672		$8,999
Income tax (benefit)		($1,832)		($1,612)		($3,339)		($3,465)

We did not capitalize any stock-based compensation cost in the three or six months ended June 30, 2011 or 2010.

As of June 30, 2011, we estimated that pre-tax compensation expense for unvested stock-based compensation grants in the amount of approximately $28,018 net of estimated forfeitures, will be recognized in future periods. This expense will be recognized over the remaining service period applicable to the grantees which, on a weighted-average basis, is approximately 2.1 years.

The stock options granted, forfeited, exercised and expired in the period indicated were as follows:

	Six Months Ended June 30, 2011
	# of Shares		Weighted Average Exercise Price		Aggregate Exercise Price		Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value (1)
Outstanding at beginning of period		1,724,791		$77.95		$134,447
Granted		159,500		$69.43		11,074
Forfeited		0		$0		0
Exercised		(103,310)		$48.23		(4,983)
Expired		0		$0		0
Outstanding at end of period		1,780,981		$78.91		$140,538	4.0		$0
Exercisable at end of period		1,334,800		$72.13		$96,273	3.3		$8,162

(1) The aggregate intrinsic value of the stock options was calculated by multiplying the number of shares subject to the options outstanding or exercisable, as applicable, by the closing market price of our common stock on June 30, 2011, and subtracting the applicable aggregate exercise price.

The following table sets forth information regarding the stock options granted and exercised in the periods indicated:

	Three Months Ended June 30,				Six Months Ended June 30,
	2011		2010		2011		2010
Shares subject to stock options granted		0		0		159,500		305,000
Weighted average grant date fair value per share		$0		$0		$28.90		$43.59
Shares subject to stock options exercised		42,780		39,200		103,310		71,329
Intrinsic value of stock options exercised		$1,659		$2,742		$2,570		$5,172
Proceeds received from stock options exercised		$1,955		$1,594		$4,983		$2,620
Tax benefits realized from stock options exercised		$638		$1,019		$989		$1,942

The intrinsic value of a stock option is the difference between the fair market value of the stock and the option exercise price.

The fair value of each stock option grant was estimated on the date of grant using the following assumptions:

	Three Months Ended June 30,				Six Months Ended June 30,
	2011		2010		2011		2010
Risk-free interest rates		Not applicable		Not applicable		1.8%		2.2%
Expected lives (in years)		Not applicable		Not applicable		4.7		4.6
Volatility		Not applicable		Not applicable		48%		43%
Dividend yield		Not applicable		Not applicable		None		None

The following table sets forth the number of restricted stock units ("RSUs") that were granted, forfeited and vested in the period indicated:

	Six Months Ended June 30, 2011
	# of RSUs		Weighted Average Grant Date Fair Value
Unvested at beginning of period		128,803		$99.22
Granted		247,783		$69.97
Forfeited		(9,717)		$77.94
Vested		(34,418)		$81.96
Unvested at end of period		332,451		$79.83

In the six months ended June 30, 2011, we awarded 50,363 RSUs that have a time-based restriction period that ends on the first anniversary of the date of grant. Each of these RSUs had a grant date fair value of $69.43 and will be settled in cash. All other RSUs awarded in the six months ended June 30, 2011 have a time-based restriction period that ends on the third anniversary of the date of grant and will be settled in shares of our common stock. The total fair market value of the RSUs vested during the six months ended June 30, 2011 was $2,289.