Note 4—Capital Stock and Stock Options

Stock Based Compensation Plans

The Company records compensation cost relating to stock based payment transactions in accordance with ASC 718. The cost is measured at the grant date, based on the calculated fair value of the award, and is recognized as an expense over the employee's requisite service period (generally the vesting period of the equity award) on a straight-line basis.

During the three months ended March 31, 2013 and 2012, the Company recognized compensation costs of $1.9 million and $1.2 million, respectively, in administrative expenses related to the Company's stock based compensation plans as a result of restricted shares granted in 2011, 2012 and 2013.

Total unrecognized compensation cost of approximately $8.5 million as of March 31, 2013 related to restricted shares granted during 2011, 2012 and 2013 will be recognized over the remaining weighted average vesting period of approximately 2.3 years.

During the three months ended March 31, 2013, plan participants exercised 30,150 options which had been granted under the 2005 Management Omnibus Incentive Plan. Plan participants tendered 19,959 shares, all of which were subsequently retired by the Company, to satisfy payment of the exercise price, and in certain instances withholding taxes related to activity under the Company's stock compensation plans.

Accumulated Other Comprehensive Loss

Accumulated other comprehensive (loss) consisted of the following as of the dates indicated (in thousands and net of tax effects):

	Cash Flow Hedges			Foreign Currency Translation			Accumulated Other Comprehensive (Loss)

Balance at December 31, 2012	$	(7,481	)	$	(949	)	$	(8,430	)
Change in fair value of derivative instruments designated as cash flow hedges, net of tax		(1,601	)		—			(1,601	)
Amortization of net loss on derivative instruments previously designated as cash flow hedges, net of tax		506			—			506
Foreign currency translation adjustment		—			(346	)		(346	)

Other comprehensive income (loss), net of tax		(1,095	)		(346	)		(1,441	)

Balance at March 31, 2013	$	(8,576	)	$	(1,295	)	$	(9,871	)

The following table presents reclassifications out of Accumulated other comprehensive (loss) for the period indicated (in thousands):

	Amounts Reclassified From Accumulated Other Comprehensive Income During Three Months Ended March 31, 2013			Affected Line Item in the Consolidated Statements of Operations

Amortization of net loss on derivative instruments previously designated as cash flow hedges, before income tax effect	$	783		Interest and debt expense
Income tax expense		(277	)	Income tax expense

Amounts reclassified from Accumulated other comprehensive income, net of income tax effect	$	506		Net income