Stock-Based Compensation

6 Months Ended

Jun. 30, 2011

Stock-Based Compensation

Stock-Based Compensation

12. Stock-Based Compensation

     Stock-based compensation expense that has been charged against income was $1.1 million and $1.5 million in the three months ended June 30, 2011 and 2010, respectively, and $2.4 million and $3.4 million in the six months ended June 30, 2011 and 2010, respectively. The Company has historically issued stock-based compensation in the form of options, stock appreciation rights (SARs) and nonvested stock. During 2010 and the first six months of 2011, stock-based compensation was issued solely in the form of nonvested stock awards.

 The 2011 stock awards generally vest in 5 to 7 years and contain restrictions as to transferability, sale, pledging, or assigning, among others, prior to the end of the vesting period. Dividend and voting rights are conferred upon grant. A summary of the status of the Company's nonvested share awards as of June 30, 2011, and changes during the six month period then ended is presented below.

				Weighted
				Average
				Grant Date
	Shares			Fair Value
Nonvested at January 1, 2011		470,406		$	36.00
Granted		198,459			40.62
Vested		(24,562	)		40.28
Forfeited		(6,398	)		37.33
Nonvested at June 30, 2011		637,905		$	37.24

     SARs and stock options are granted with an exercise price equal to the market price of the Company's stock at the date of grant and have 10-year contractual terms. SARs, which the Company granted in 2006 and subsequent years, vest on a graded basis over 4 years of continuous service. All SARs must be settled in stock under provisions of the plan. Stock options, which were granted in 2005 and previous years, vest on a graded basis over 3 years of continuous service. In determining compensation cost, the Black-Scholes option-pricing model is used to estimate the fair value of SARs and options on date of grant.

  A summary of option activity during the first six months of 2011 is presented below.

						Weighted
				Weighted		Average
				Average		Remaining	Aggregate
				Exercise		Contractual	Intrinsic
(Dollars in thousands, except per share data)	Shares			Price		Term	Value
Outstanding at January 1, 2011		1,806,110		$	30.96
Granted		—			—
Forfeited		—			—
Expired		—			—
Exercised		(474,289	)		28.94
Outstanding at June 30, 2011		1,331,821		$	31.68	2.4 years	$	15,079

 A summary of SAR activity during the first six months of 2011 is presented below.

						Weighted
				Weighted		Average
				Average		Remaining	Aggregate
				Exercise		Contractual	Intrinsic
(Dollars in thousands, except per share data)	Shares			Price		Term	Value
Outstanding at January 1, 2011		1,710,108		$	39.71
Granted		—			—
Forfeited		(2,952	)		37.74
Expired		(5,156	)		40.28
Exercised		(28,793	)		38.81
Outstanding at June 30, 2011		1,673,207		$	39.72	5.7 years	$	5,482