Stock Based Compensation and Share Repurchase Program

9 Months Ended

Sep. 30, 2014

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, 2013. The Plan provides for long-term equity incentive compensation for key employees and members of the Board of Directors. A variety of discretionary awards for employees and non-employee directors 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 2014, the Company granted 0.3 million stock options and 0.3 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 $6.0 million for the third quarter of 2014 and $6.1 million for the third quarter of 2013. Year-to-date share based compensation costs totaled $29.7 million in 2014 and $31.5 million in 2013. The fair values for share options and performance-based restricted share awards are estimated on the date of grant using a lattice-based binomial model and Monte Carlo simulation model, respectively. Assumptions utilized in the models are evaluated and revised, as necessary, to reflect market conditions and experience.

As of September 30, 2014, $3.6 million of total unrecognized stock-based compensation costs related to stock options is expected to be recognized over a weighted-average period of 1.3 years. In addition, $28.5 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 1.4 years.

Share Repurchase Program

Under a share repurchase program authorized by the Board of Directors, we are permitted to acquire $2 billion of Class A Common shares. All shares repurchased under the program are constructively retired and returned to unissued shares. 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.

We repurchased 3.1 million shares for approximately $250 million during the third quarter of 2014 and repurchased 45,730 shares for approximately $3.1 million during the third quarter of 2013. For the year-to-date period of 2014, we repurchased 10.3 million shares for approximately $800 million, including repurchasing 2.6 million shares for $191 million from Scripps family members, and repurchased 3.9 million shares for approximately $253 million for the year-to-date period of 2013. As of September 30, 2014, $847 million remains available for repurchase under the program.