Stock Incentive Plans

12 Months Ended

Dec. 31, 2012

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

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

STOCK INCENTIVE PLANS

The Company’s 2007 (adopted in 2006) Stock Incentive Plan provides for the issuance of up to 6,000,000 shares of common stock to certain employees.  The plan expires 10 years after its inception, at which point no further stock options or performance units (commonly referred to as stock awards) may be granted.  As of December 31, 2012, 4,189,756 shares were available for future grants under these plans.  Shares forfeited by an employee become available for future grants.

Stock Awards

Distribution of stock awards is made in the form of shares of the Company’s common stock on a one for one basis.  Distribution of the shares will normally be made not less than three years, nor more than six years, from the date of the stock award grant to an employee.  Stock awards for directors vest immediately.  All other stock awards granted under the plans are subject to restrictions as to continuous employment, except in the case of death, permanent disability, or retirement.  Approximately 45 percent, 38 percent, and 18 percent of the stock awards granted in 2012, 2011, and 2010, respectively are also subject to the degree to which specified total shareholder return conditions are satisfied.  In addition, cash payments are made during the vesting period on the outstanding stock awards granted prior to January 1, 2010, equal to the dividend on the Company’s common stock.  Cash payments equal to dividends on awards made on or after January 1, 2010, will be distributed at the same time as the shares of common stock to which they relate.  The cost of the award is based on the fair market value of the stock on the date of grant and is charged to income over the requisite service period.  Total compensation expense related to stock incentive plans was $17.6 million in 2012, $16.3 million in 2011, and $18.4 million in 2010.

As of December 31, 2012, the unrecorded compensation cost for stock awards was $22.6 million and will be recognized over the remaining vesting period for each grant which ranges between 2013 and 2016.  The remaining weighted-average life of all stock awards outstanding as of December 31, 2012 was 1.8 years.  These awards are considered equity-based awards and are therefore classified as a component of additional paid-in capital.

The following table summarizes stock awards unit activity for the year ended December 31, 2012:

	Weighted-average grant date share value		Shares
Outstanding units granted at the beginning of the year	$	31.75	2,891,298
Units granted	33.88		286,985
Units paid (in shares)	30.68		(499,085		)
Units canceled	32.10		(107,850		)
Outstanding units granted at the end of the year	32.19		2,571,348
Aggregate intrinsic value at year end of outstanding awards, in millions			$	86.0