2.2.0.25falsefalse0209 - Disclosure - Share-Based Compensationtruefalsefalse1falsefalseUSDfalsefalse1/1/2011 - 3/31/2011
USD ($)
USD ($) / shares
$Jan-01-2011_Mar-31-2011http://www.sec.gov/CIK0001185348duration2011-01-01T00:00:002011-03-31T00:00:00USDStandardhttp://www.xbrl.org/2003/iso4217USDiso42170SharesStandardhttp://www.xbrl.org/2003/instancesharesxbrli0USDEPSDividehttp://www.xbrl.org/2003/iso4217USDiso4217http://www.xbrl.org/2003/instancesharesxbrli0USDUSD$2true0us-gaap_ShareBasedCompensationAbstractus-gaaptruenadurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00falsefalsefalsefalsefalseOtherxbrli:stringItemTypestringNo definition available.falsefalse3false0us-gaap_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlockus-gaaptruenadurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalseverboselabel1falsefalsefalse00<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
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<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>9. Share-Based Compensation:</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Company has a stock option and nonvested share plan. The Company created the 2002 Stock
Option Plan (the “Plan”) on November 7, 2002. The Plan was amended in 2004 (the “Amended Plan”) to
enable the Company to issue nonvested shares of stock to its employees and directors. The Amended
Plan was approved by the Company’s shareholders at its Annual Meeting on May 12, 2004. On March
19, 2010, the Company adopted a 2010 Stock Plan, which was approved by its shareholders at the 2010
Annual Meeting. The 2010 Stock Plan is a further amendment to the Amended Plan, and contains,
among other things, specific performance metrics with respect to performance-based stock awards. Up
to 2,000,000 shares of common stock may be issued under the 2010 Stock Plan. The 2010 Stock Plan
expires on November 7, 2012.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Company follows the provisions of FASB ASC Topic 718 “Compensation-Stock Compensation”
(“ASC 718”). As of March 31, 2011, total future compensation costs related to nonvested awards
of nonvested shares (not including nonvested shares granted under the Long-Term Incentive Program
(“LTI”)) is estimated to be $4.3 million with a weighted average remaining life for all nonvested
shares of 2.5 years (not including nonvested shares granted under the LTI Programs). As of March
31, 2011, there are no future compensation costs related to stock options and there are no
remaining vested stock options to be exercised. Based upon historical data, the Company used an
annual forfeiture rate of 14% for stock options and 15-40% for nonvested shares for most of the
employee grants. Grants made to key employees and directors of the Company were assumed to have no
forfeiture rates associated with them due to the historically low turnover among this group.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Total share-based compensation expense was $2,614,201 and $879,880 for the three months ended
March 31, 2011, and 2010, respectively. Tax benefits resulting from tax deductions in excess of
share-based compensation expense recognized under the provisions of ASC 718 (windfall tax benefits)
are credited to additional paid-in capital in the Company’s Consolidated Balance Sheets. Realized
tax shortfalls, if any, are first offset against the cumulative balance of windfall tax benefits,
if any, and then charged directly to income tax expense. The total tax benefit realized from
share-based compensation was $968,636 and $123,787 for the three months ended March 31, 2011 and
2010, respectively.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b><i>Stock Options</i></b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     All options issued under the Amended Plan vest ratably over five years. Granted options expire
seven years from the applicable grant date. Options granted to a single person cannot exceed
200,000 in a single year. All of the stock options which have been granted under the Amended Plan
were granted to employees of the Company, except for 40,000 which were granted to non-employee
directors. The Company granted no options during the three months ended March 31, 2011 and 2010.
The total intrinsic value of options exercised during the three months ended March 31, 2011 and
2010 was approximately $224,000 and $0, respectively. At March 31, 2011, 895,000 options had been
granted under the Amended Plan, all of which have been either cancelled, expired or exercised.
There were no antidilutive options outstanding for the three months
ended March 31, 2011 and 2010,
respectively.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The following summarizes all option related transactions from December 31, 2009 through March
31, 2011 (amounts in thousands, except per share amounts):
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="64%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Weighted-Average</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Weighted-Average</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Exercise Price Per</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Fair Value Per</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">Options Outstanding</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">Share</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">Share</td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">December 31, 2009
</div></td>
<td> </td>
<td> </td>
<td align="right">7</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">29.41</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">2.70</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Exercised
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(2</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">28.45</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2.92</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">December 31, 2010
</div></td>
<td> </td>
<td> </td>
<td align="right">5</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">29.79</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2.62</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Exercised
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(5</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">29.79</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2.62</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">March 31, 2011
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Company utilizes the Black-Scholes option pricing model to calculate the value of the
stock options when granted. This model was developed to estimate the fair value of traded options,
which have different characteristics than employee stock options. In addition, changes to the
subjective input assumptions can result in materially different fair market value estimates.
Therefore, the Black-Scholes model may not necessarily provide a reliable single measure of the
fair value of employee stock options.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b><i>Nonvested Shares</i></b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     With the exception of the awards made pursuant to the LTI Program and a few employee and
director grants, the terms of the nonvested share awards are similar to those of the stock option
awards, wherein the nonvested shares vest ratably over five years and are expensed over their
vesting period.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The following summarizes all nonvested share transactions (excluding shares granted under the
LTI Programs) from December 31, 2009 through March 31, 2011 (amounts in thousands, except per share
amounts):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Nonvested Shares</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2">Weighted-Average Price</td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">Outstanding</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">at Grant Date</td>
<td style="border-bottom: 1px solid #000000"> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">December 31, 2009
</div></td>
<td> </td>
<td> </td>
<td align="right">81</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">40.24</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Granted
</div></td>
<td> </td>
<td> </td>
<td align="right">57</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">53.06</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Vested
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(37</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">41.46</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Cancelled
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(10</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">39.61</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">December 31, 2010
</div></td>
<td> </td>
<td> </td>
<td align="right">91</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">47.89</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Granted
</div></td>
<td> </td>
<td> </td>
<td align="right">38</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">75.81</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Vested
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(30</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">57.40</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Cancelled
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(2</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">41.81</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">March 31, 2011
</div></td>
<td> </td>
<td> </td>
<td align="right">97</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">56.04</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The total grant date fair value of shares vested during the three months ended March 31, 2011
and 2010 was $1,723,152 and $323,568, respectively.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b><i>Long-Term Incentive Programs</i></b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Pursuant to the Amended Plan, on January 20, 2009, January 14, 2010 and January 14, 2011, the
Compensation Committee approved the grant of 108,720, 53,656 and 73,914 performance and market
based nonvested shares, respectively. All shares granted under the LTI Programs were granted to
key employees of the Company. The 2009 grant is performance based and cliff vests after the
requisite service period of two to three years if certain financial goals are met. The goals are
based upon diluted earnings per share (“EPS”) totals for 2009, the return on owners’ equity for the
three year period beginning on January 1, 2009 and ending December 31, 2011, and the relative total
shareholder return as compared to a peer group for the same three year period. For each component,
the number of shares vested can double if the financial goals are exceeded and no shares will vest
if the
financial goals are not met. The Company is expensing the nonvested share grant over the
requisite service period of two to three years beginning on January 1, 2009. If the Company
believes that the number of shares granted will be more or less than originally projected, an
adjustment to the expense will be made at that time based on the probable outcome. The EPS
component of the 2009 plan was not achieved and therefore no compensation expense was recognized
relative to this component. The 2010 grant is performance based and cliff vests after the
requisite service period of two to three years if certain financial goals are met. The goals are
based upon diluted EPS totals for 2010, the return on owners’ equity for the three year period
beginning on January 1, 2010 and ending December 31, 2012, and the relative total shareholder
return as compared to a peer group for the same three year period. For each component, the number
of shares vested can double if the financial goals are exceeded and no shares will vest if the
financial goals are not met. The EPS component of the 2010 plan was achieved at 190% and these
shares will vest at 50% on both December 31, 2011 and December 31, 2012. The Company is expensing
the nonvested share grant over the requisite service period of two to three years beginning on
January 1, 2010. If the Company believes that the number of shares granted will be more or less
than originally projected, an adjustment to the expense will be made at that time based on the
probable outcome. The 2011 grant is performance based and cliff vests after the requisite service
period of two to three years if certain financial goals are met. The goals are based upon the
Company’s earnings before interest, taxes, depreciation and amortization (“EBITDA”) for 2011, the
return on owners’ equity for the three year period beginning on January 1, 2011 and ending December
31, 2013, and the relative total shareholder return as compared to a peer group for the same three
year period. For each component, the number of shares vested can double if the financial goals are
exceeded and no shares will vest if the financial goals are not met. The Company is expensing the
nonvested share grant over the requisite service period of two to three years beginning on January
1, 2011. If the Company believes that the number of shares granted will be more or less than
originally projected, an adjustment to the expense will be made at that time based on the probable
outcome. At March 31, 2011, total future compensation costs, assuming the current estimated levels
are achieved, related to nonvested share awards granted under the 2009, 2010 and 2011 LTI Programs
are estimated to be
approximately $8.5 million. The Company assumed a 7.5% forfeiture rate for this grant and the
remaining shares have a weighted average life of 1.8 years at March 31, 2011.
</div>
</div>
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<!-- Begin Block Tagged NotefalsefalsefalsefalsefalseOtherus-types:textBlockItemTypestringDisclosure of compensation-related costs for share-based compensation which may include disclosure of policies, compensation plan details, allocation of stock compensation, incentive distributions, share-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 123R
-Paragraph 64, 65, A240
Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Statement of Position (SOP)
-Number 93-6
-Paragraph 53
Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 14
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