Stock-Based Compensation

12 Months Ended

Dec. 31, 2011

Stock-Based Compensation

Stock-Based Compensation

14. Stock-Based Compensation

        We have various stock-based compensation plans which are administered by the compensation committee of the Board of Directors. Total stock-based compensation expense was $3.6 million, $3.7 million and $3.5 million for the years ended December 31, 2011, 2010 and 2009, respectively. Total income tax benefit recognized for stock-based compensation arrangements was $1.3 million for each of the years ended December 31, 2011, 2010 and 2009. We present the benefits of tax deductions in excess of recognized compensation costs ("excess tax benefits") as financing cash flows in the consolidated statements of cash flows.

        Upon the vesting of restricted shares, we have allowed the holder to elect to surrender an amount of shares to meet their minimum statutory tax withholding requirements. These shares are accounted for as treasury stock based upon the value of the stock on the date of vesting.

• Stock Options

        The following table summarizes activity under our stock option plans (shares in thousands):

	Year Ended December 31,
	2011					2010					2009
Stock Options	Shares			Weighted- Average Exercise Price		Shares			Weighted- Average Exercise Price		Shares			Weighted- Average Exercise Price
Outstanding at beginning of year		1,061		$	9.58		1,180		$	7.77		1,365		$	6.39
Granted		142		$	13.87		146		$	12.46		177		$	11.00
Exercised		(66	)	$	4.46		(184	)	$	2.58		(355	)	$	4.00
Forfeited		—		$	—		(12	)	$	12.32		(7	)	$	11.00
Expired		(81	)	$	4.82		(69	)	$	2.88		—		$	—
Outstanding at end of year		1,056		$	10.84		1,061		$	9.58		1,180		$	7.77
Options exercisable at end of year		762					756					879

        The total intrinsic value of options exercised during the years ended December 31, 2011, 2010 and 2009 was $0.5 million, $1.8 million and $2.6 million, respectively. Stock options outstanding as of December 31, 2011 have a weighted-average remaining contractual term of 6.0 years and an aggregate intrinsic value of $1.4 million. Stock options exercisable as of December 31, 2011 have a weighted-average remaining contractual term of 5.0 years and an aggregate intrinsic value of $1.4 million. As of December 31, 2011, we have 1.0 million options that are vested or expected to vest; these options have a weighted average exercise price of $10.81 per share, have a weighted-average remaining contractual term of 6.0 years and an aggregate intrinsic value of $1.4 million.

        The following table summarizes information about stock options outstanding at December 31, 2011 (shares in thousands):

	Options Outstanding						Options Exercisable
Range of Exercise Prices	Number Outstanding at 12/31/11		Weighted- Average Remaining Contractual Life		Weighted- Average Exercise Price		Number Exercisable at 12/31/11		Weighted- Average Exercise Price
$1.90 - $2.875		66		1.32	$	1.97		66	$	1.97
$3.39 - $4.77		23		1.42	$	3.83		23	$	3.83
$6.38 - $7.94		148		3.19	$	6.51		148	$	6.51
$11.00 - $12.90		488		6.74	$	11.85		337	$	11.82
$13.15 - $15.03		331		7.44	$	13.54		188	$	13.30
$1.90 - $15.03		1,056		6.01	$	10.84		762	$	10.06

        The fair value of each option award is estimated, based on several assumptions, on the date of grant using the Black-Scholes option valuation model. The fair values and the assumptions used for the 2011 to 2009 grants are shown in the table below:

	Year Ended December 31,
	2011			2010			2009
Weighted-average fair value per share of options granted	$	5.04		$	4.61		$	4.06
Fair value assumptions:
Expected dividend yield		1.70	%		1.73	%		1.53	%
Expected stock price volatility		44.2	%		44.4	%		45.0	%
Risk-free interest rate		2.24	%		2.65	%		1.80	%
Expected term		5.3 years			5.3 years			5.3 years

        Stock options are accounted for as equity instruments, and compensation cost is recognized using the straight-line method over the vesting period. Stock options generally vest over a three-year vesting period. Certain stock option and restricted stock awards provide for accelerated vesting if the employee retires at any time when the sum of their age and years of service is at least 75. As of December 31, 2011, the unrecognized compensation cost related to stock options was $0.4 million, which is expected to be recognized over a weighted-average period of 1.8 years. The total fair value of options vested during the year ended December 31, 2011 was $0.7 million.

        The following table summarizes information about nonvested stock option awards as of December 31, 2011 and changes for the year ended December 31, 2011 (shares in thousands):

Stock Options	Shares			Weighted-Average Grant Date Fair Value
Nonvested at December 31, 2010		305		$	4.51
Granted		142		$	5.04
Vested		(153	)	$	4.60
Forfeited		—		$	—
Nonvested at December 31, 2011		294		$	4.71

        We generally issue treasury shares for stock options and restricted stock, unless treasury shares are not available.

• Restricted Stock

        The following table summarizes activity under our restricted stock plans (shares in thousands):

	Shares
Restricted Stock	2011			2010			2009
Unvested at beginning of year		312			300			284
Granted		231			245			217
Vested		(241	)		(228	)		(198	)
Forfeited		—			(5	)		(3	)
Unvested at end of year		302			312			300

        Approximately $1.6 million of compensation expense related to restricted stock will be recognized over a weighted-average period of 0.9 years. The total fair value of shares vested during year ended December 31, 2011 was $2.9 million. The weighted-average fair value per share of restricted stock shares awarded during 2011, 2010 and 2009 was $11.29, $12.26 and $11.40, respectively. The aggregate intrinsic value of restricted stock vested during the years ended December 31, 2011, 2010 and 2009 was $2.6 million, $3.0 million and $1.9 million, respectively.