Equity-Based Compensation

9 Months Ended

Sep. 30, 2012

Share-based Compensation [Abstract]

Equity-Based Compensation

Equity-Based Compensation

As of September 30, 2012, we had three stock incentive plans under which stock option, performance share or restricted stock unit, or RSU, grants were outstanding, with approximately 367,000 shares authorized for future use under the 2005 Stock Incentive Plan.

The following table details our compensation expense for the quarters and nine months ended September 30:

	Quarter Ended					Nine Months Ended
	September 30,					September 30,
(Dollars in thousands)	2012		2011			2012		2011
Employee equity-based compensation expense:
Performance shares	$	891	$	942		$	2,598	$	2,707
Restricted stock units	168		155			459		437
Total employee equity-based compensation expense	$	1,059	$	1,097		$	3,057	$	3,144
Related net income tax benefit	$	—	$	—		$	—	$	—
Director deferred compensation expense (income)	$	1,126	$	(373	)	$	1,553	$	484

There were no realized tax benefits related to the excess of the deductible amount over the compensation cost recognized in the Consolidated Condensed Statements of Cash Flows during any of the periods presented above.

STOCK OPTIONS

The following table summarizes outstanding stock options as of September 30, 2012 and changes during the nine months ended September 30, 2012:

(Dollars in thousands, except exercise prices)	Shares		Weighted Avg. Exercise Price		Aggregate Intrinsic Value
Outstanding at January 1	144,684		$	23.34
Shares exercised	(40,830	)	16.63		$	679
Shares canceled or expired	—		—
Outstanding and exercisable at September 30	103,854		25.68		1,214

There were no unvested stock options outstanding during the nine months ended September 30, 2012. The aggregate intrinsic value of stock options exercised during the nine months ended September 30, 2011 was $1.3 million.

The following table summarizes outstanding stock options as of September 30, 2012:

	Options Outstanding and Exercisable
Range of Exercise Prices	Outstanding	Weighted Avg. Remaining Contractual Life	Weighted Avg. Exercise Price
$14.4398	11,545	0.17 years	$	14.44
$19.2569	30,340	1.17 years	19.26
$30.9204	61,969	2.17 years	30.92
$14.4398 to $30.9204	103,854	1.66 years	25.68

Cash received from stock option exercises for the nine months ended September 30, 2012 and 2011 was $0.7 million and $1.2 million, respectively. No actual tax benefits were realized for tax deductions from options exercised during either period.

PERFORMANCE SHARES

The following table presents the key inputs used in the Monte Carlo simulation method to calculate the fair value of the performance share awards in 2012 and 2011, and the resulting fair values:

	2012			2011
Shares granted	85,028			77,767
Stock price as of valuation date	$	31.11		$	39.10
Risk-free rate	0.40		%	1.26		%
Fair value of a performance share	$	34.24		$	55.84

The following table summarizes outstanding performance share awards as of September 30, 2012, and changes during the nine months ended September 30, 2012:

(Dollars in thousands, except grant date fair value)	Shares		Weighted Avg. Grant Date Fair Value		Aggregate Intrinsic Value
Unvested shares outstanding at January 1	154,594		$	50.54
Granted	85,028		34.24
Forfeited	(2,596	)	44.99
Unvested shares outstanding at September 30	237,026		44.76		$	8,657

As of September 30, 2012, there was $4.2 million of unrecognized compensation cost related to non-vested performance share awards, which is expected to be recognized over a weighted average period of 1.25 years.

RESTRICTED STOCK UNITS

The following table summarizes outstanding RSU awards as of September 30, 2012, and changes during the nine months ended September 30, 2012:

(Dollars in thousands, except grant date fair value)	Shares		Weighted Avg. Grant Date Fair Value		Aggregate Intrinsic Value
Unvested shares outstanding at January 1	36,359		$	35.60
Granted	19,725		31.38
Vested	(1,290	)	33.27
Forfeited	(1,504	)	33.36
Unvested shares outstanding at September 30	53,290		34.16		$	1,991

For RSU awards granted during the period, the fair value of each share was determined on the date of grant using the grant date market price. The total fair value of RSU awards vested during the nine months ended September 30, 2012 was less than $0.1 million. As of September 30, 2012, there was $0.8 million of unrecognized compensation cost related to non-vested RSU awards, which is expected to be recognized over a weighted average period of 1.3 years.