Share-Based Compensation

3 Months Ended

Mar. 31, 2015

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

Share-Based Compensation

Share-Based Compensation:

The Company has an Omnibus Incentive Plan (the "Plan") to assist the Company in attracting and retaining selected individuals to serve as employees and directors, who are expected to contribute to the Company's success and to achieve long-term objectives that will benefit stockholders of the Company. The Plan enables the Company to award shares of the Company's common stock to select employees and directors, as described in the Plan, not to exceed 5,400,000 shares, as authorized by the Plan.

As of March 31, 2015, total future compensation costs related to nonvested awards of nonvested shares (not including nonvested shares granted under the Long-Term Incentive ("LTI") Program) is estimated to be $15.3 million with a weighted average remaining life for all nonvested shares of 2.1 years (not including nonvested shares granted under the LTI program).

Total share-based compensation expense was $3.6 million and $2.8 million for the three months ended March 31, 2015 and 2014, respectively. Tax benefits resulting from tax deductions in excess of share-based compensation expense (windfall tax benefits) recognized under the provisions of ASC Topic 718 "Compensation-Stock Compensation" ("ASC 718") 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 approximately $7.5 million and $7.5 million for the three months ended March 31, 2015 and 2014, respectively.

Nonvested Shares

With the exception of the awards made pursuant to the LTI program and a few employee and director grants, the nonvested shares vest ratably over three to five years and are expensed over their vesting period.

The following summarizes all nonvested share transactions, excluding those related to the LTI program, from December 31, 2013 through March 31, 2015 (share amounts in thousands):

	Nonvested Shares Outstanding		Weighted-Average Price at Grant Date
December 31, 2013	226		$	29.58
Granted	272		56.69
Vested	(155	)	37.34
Cancelled	(4	)	50.41
December 31, 2014	339		47.34
Granted	84		52.49
Vested	(88	)	32.25
March 31, 2015	335		$	52.60

The total grant date fair value of shares vested during the three months ended March 31, 2015 and 2014, was $2.8 million and $2.4 million, respectively.

Pursuant to the Plan, the Compensation Committee may grant time-vested and performance based nonvested shares. All shares granted under the LTI program were granted to key employees of the Company. The following summarizes all LTI program share transactions from December 31, 2013 through March 31, 2015 (share amounts in thousands):

	Nonvested LTI Shares Outstanding		Weighted-Average Price at Grant Date
December 31, 2013	434		$	25.79
Granted at target level	111		49.60
Adjustments for actual performance	222		22.32
Vested	(279	)	24.21
December 31, 2014	488		30.52
Granted at target level	132		52.47
Vested	(252	)	20.21
Cancelled	(3	)	30.36
March 31, 2015	365		$	45.60

The total grant date fair value of shares vested during the three months ended March 31, 2015 and 2014, was $5.1 million and $5.7 million, respectively.

At March 31, 2015, total future compensation costs, assuming the current estimated performance levels are achieved, related to nonvested share awards granted under the LTI program are estimated to be approximately $12.4 million. The Company assumed a 7.5% forfeiture rate for these grants and the remaining shares have a weighted average life of 1.4 years at March 31, 2015.