Stock Based Compensation and Share Repurchase Program

9 Months Ended

Sep. 30, 2012

Stock Based Compensation and Share Repurchase Program [Abstract]

Capital Stock and Stock Compensation Plans

13. Stock Based Compensation and Share Repurchase Program

We have a Long-Term Incentive Plan (the "Plan") which is described more fully in our Annual Report on Form 10-K for the year ended December 31, 2011. The Plan provides for long-term performance compensation for key employees.  A variety of discretionary awards for employees are authorized under the plan, including incentive or non-qualified stock options, stock appreciation rights, restricted or nonrestricted stock awards and performance awards.

For the year-to-date period of 2012, the Company granted 0.6 million stock options and 0.4 million restricted share awards, including performance share awards. The number of shares ultimately issued for the performance share awards depends upon the specified performance conditions attained. Share based compensation costs totaled $5.5 million for the third quarter of 2012 and $4.8 million for the third quarter of 2011.  Year-to-date share based compensation costs totaled $25.3 million in 2012 and $17.4 million in 2011. Compensation costs of share options are estimated on the date of grant using a lattice-based binomial model.  Assumptions utilized in the model are evaluated and revised, as necessary, to reflect market conditions and experience.

As of September 30, 2012, $4.9 million of total unrecognized stock-based compensation costs related to stock options is expected to be recognized over a weighted-average period of 1.7 years.  In addition, $20.3 million of total unrecognized stock-based compensation cost related to restricted stock awards, including performance awards, is expected to be recognized over a weighted-average period of 1.9 years.

Share Repurchase Program

In June 2011, our Board of Directors authorized a share repurchase program allowing the Company to repurchase up to $1 billion of its outstanding Class A common shares. All shares repurchased under the program are constructively retired and returned to unissued shares.  During the second quarter of 2012, we completed the repurchase of shares under the authorization following the acquisition of 4.6 million shares for approximately $250 million.  For the year-to-date period of 2012, we repurchased 10.1 million shares for approximately $500 million.

On July 31, 2012, the Board of Directors authorized an additional $1 billion for the Company's share repurchase plan.  As of September 30, 2012, $1 billion remains available for repurchase under the authorization.  There is no expiration date for the program and we are under no commitment or obligation to repurchase any particular amount of Class A Common shares under the program.