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 $2.8 million, $3.6 million and $3.7 million for the years ended December 31, 2012, 2011 and 2010, respectively. Total income tax benefit recognized for stock-based compensation arrangements was $1.0 million, $1.3 million and $1.3 million for each of the years ended December 31, 2012, 2011 and 2010. 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,

	2012					2011					2010
Stock Options	Shares			Weighted- Average Exercise Price		Shares			Weighted- Average Exercise Price		Shares			Weighted- Average Exercise Price
Outstanding at beginning of year		1,056		$	10.84		1,061		$	9.58		1,180		$	7.77
Granted		190		$	11.19		142		$	13.87		146		$	12.46
Exercised		(103	)	$	3.20		(66	)	$	4.46		(184	)	$	2.58
Forfeited		—		$	—		—		$	—		(12	)	$	12.32
Expired		—		$	—		(81	)	$	4.82		(69	)	$	2.88

Outstanding at end of year		1,143		$	11.59		1,056		$	10.84		1,061		$	9.58

Options exercisable at end of year		810					762					756

The total intrinsic value of options exercised during the years ended December 31, 2012, 2011 and 2010 was $0.8 million, $0.5 million and $1.8 million, respectively. Stock options exercisable as of December 31, 2012 have a weighted-average remaining contractual term of 5.0 years and an aggregate intrinsic value of $1.0 million. As of December 31, 2012, we have 1.1 million options that are vested or expected to vest; these options have a weighted average exercise price of $11.59 per share, have a weighted-average remaining contractual term of 6.1 years and an aggregate intrinsic value of $1.2 million.

The following table summarizes information about stock options outstanding at December 31, 2012 (shares in thousands):

	Options Outstanding

			Weighted- Average Remaining Contractual Life				Options Exercisable
Range of Exercise Prices	Number Outstanding at 12/31/12		Weighted- Average Remaining Contractual Life		Weighted- Average Exercise Price		Number Exercisable at 12/31/12		Weighted- Average Exercise Price
$1.90 - $2.88		5		0.31	$	1.90		5	$	1.90
$6.38 - $7.94		129		2.17	$	6.53		129	$	6.53
$10.73 - $12.90		678		6.72	$	11.66		440	$	11.78
$13.15 - $15.03		331		6.43	$	13.54		236	$	13.41

$1.90 - $15.03		1,143		6.10	$	11.59		810	$	11.36

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 2012, 2011 and 2010 grants are shown in the table below:

	Year Ended December 31,

	2012			2011			2010
Weighted-average fair value per share of options granted	$	4.03		$	5.04		$	4.61
Fair value assumptions:
Expected dividend yield		1.86	%		1.70	%		1.73	%
Expected stock price volatility		46.5	%		44.2	%		44.4	%
Risk-free interest rate		1.17	%		2.24	%		2.65	%
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, 2012, the unrecognized compensation cost related to stock options was $0.6 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, 2012 was $0.7 million.

The following table summarizes information about nonvested stock option awards as of December 31, 2012 and changes for the year ended December 31, 2012 (shares in thousands):

Stock Options			Weighted-Average Grant Date Fair Value

Nonvested at December 31, 2011	294		$	4.71
Granted	190		$	4.03
Vested	(151	)	$	4.54
Forfeited	—		$	—

Nonvested at December 31, 2012	333		$	4.40

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

Restricted Stock and Restricted Stock Units

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

	Shares

Restricted Stock and Restricted Stock Units	2012			2011			2010
Unvested at beginning of year		302			312			300
Granted		224			231			245
Vested		(254	)		(241	)		(228	)
Forfeited		—			—			(5	)

Unvested at end of year		272			302			312

Approximately $1.1 million of compensation expense related to restricted stock will be recognized over a weighted-average period of 0.8 years. The total fair value of shares vested during year ended December 31, 2012 was $3.0 million. The weighted-average fair value per share of restricted stock shares awarded during 2012, 2011 and 2010 was $10.78, $11.29 and $12.26, respectively. The aggregate intrinsic value of restricted stock vested during the years ended December 31, 2012, 2011 and 2010 was $3.1 million, $2.6 million and $3.0 million, respectively.

Performance Stock Units

Certain equity awards for the year ended December 31, 2012 include dollar-denominated performance vesting restricted stock units. These performance stock units include earnings per share and relative total shareholder return measurements and cliff vest at the end of a three-year period. These vesting conditions will be established at a future date and upon achievement of the necessary performance metrics, the award will be determined in dollars and settled in stock based on the market price of the Company's common stock at the end of the performance period.