Share-Based Compensation

3 Months Ended

Mar. 31, 2014

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

Share-Based Compensation

Share-Based Compensation

Share-based compensation expense consists of:

	First Quarter
	2014			2013
	(In thousands)
Cash-settled awards	$	(2,683	)	$	6,647
Equity-settled awards	2,349			1,719
Restricted stock	46			395
Stock options	601			1,654
	$	313		$	10,415

Share-based compensation expense is included in:

	First Quarter
	2014			2013
	(In thousands)
General and administrative expense	$	(23	)	$	5,512
Other operating expense	336			4,903
	$	313		$	10,415

In first quarter2014, we granted 92,800 cash-settled awards and 467,200 equity-settled awards. Equity-settled awards granted to employees in the first quarter 2014 include restricted stock units (RSUs), market-leveraged stock units (MSUs) and performance stock units (PSUs). Both cash-settled and equity-settled RSUs vest ratably over three years from the date of grant. Equity-settled MSUs and PSUs vest after three years from the date of grant upon achievement of market condition for MSUs and upon achievement of performance goals for PSUs. Equity-settled awards in the form of RSUs granted to our directors are fully vested at the time of grant and are issued upon retirement. There were no restricted stock awards or stock options granted in first quarter2014.

The fair value of awards granted to retirement eligible employees and expensed at the date of grant was $760,000 in first quarter2014 and $590,000 in first quarter2013. Unrecognized share-based compensation expense related to non-vested equity-settled awards, restricted stock and stock options is $14,082,000 at first quarter-end2014.

In first quarter2014 and 2013, we issued 167,747 and 13,807 shares out of our treasury stock associated for vesting of stock-based awards or exercise of stock options, net of 46,314 and 54,322 shares withheld having a value of $879,000 and $1,024,000 for payroll taxes in connection with vesting of stock-based awards.