Disclosure of Incentive Compensation Plan

6 Months Ended

Jun. 30, 2011

Disclosure of Incentive Compensation Plan [Abstract]

Disclosure of Incentive Compensation Plan

7. The Company’s incentive compensation plans allow the Company to grant awards to key employees in the form of stock options, stock awards, restricted stock units, stock appreciation rights, performance units, dividend equivalents and other awards. Compensation related to these awards is determined based on the fair value on the date of grant and is amortized to expense over the vesting period. For restricted stock units and performance stock units, the Company recognizes compensation expense based on the earlier of the vesting date or the date when the employee becomes eligible to retire. If awards can be settled in cash, these awards are recorded as liabilities and marked to market.

The following table discloses the amount of stock based compensation expense for the three and six-month periods ended June 30, 2010 and 2011:

	Three months ended June 30				Six months ended June 30
	2010		2011		2010		2011
Stock options	$	396	$	727	$	617	$	1,220
Restricted stock units		477		316		644		598
Performance stock units		1,572		317		2,271		521
Total stock based compensation	$	2,445	$	1,360	$	3,532	$	2,339

Stock Options

In April 2009, executives participating in the 2009 — 2011 Long-Term Incentive Plan were granted 1,155,000 stock options which will vest one third each year through April 2012. This plan does not contain any performance based criteria. In March 2010, executives participating in the 2010 — 2012 Long-Term Incentive Plan were granted 303,120 stock options which will vest one third each year through March 2013. During 2011, executives participating in the 2011 — 2013 Long-Term Incentive Plan were granted 311,670 stock options which will vest one third each year through 2014. The fair value of these options was estimated at the date of grant using a Black-Scholes option pricing model with the following weighted-average assumptions:

	2010			2011
Risk-free interest rate		2.8	%		2.7	%
Dividend yield		2.2	%		1.8	%
Expected volatility of the Company’s common stock		0.604			0.615
Expected life in years		6.0			6.0

The weighted average fair value of options granted in 2010 and 2011 was $9.01 and $11.57, respectively.

The following table provides details of the stock option activity for the six months ended June 30, 2011:

	Long-Term Incentive Plan Years
	2009 - 2011			2010 - 2012			2011 - 2013
January 1, 2011
Outstanding		816,500			303,120			—
Exercisable		164,500			—			—
Granted					—			311,670
Cancelled		(2,000	)		(13,000	)		—
Exercised		(110,500	)		(10,034	)		—
June 30, 2011
Outstanding		704,000			280,086			311,670
Exercisable		410,000			91,008			—

Restricted Stock Units

Under the Company’s various Incentive Compensation Plans, restricted stock units may be granted to officers and other key employees. Compensation related to the restricted stock units is determined based on the fair value of the Company’s stock on the date of grant and is amortized to expense over the vesting period. The restricted stock units granted in 2011 have vesting periods ranging from three to four years.

The following table provides details of the restricted stock unit activity for the six months ended June 30:

	2010			2011
Restricted stock units outstanding at January 1		526,809			242,273
Restricted stock units granted		—			100,400
Accrued dividend equivalents		2,981			2,962
Restricted stock units settled		(250,021	)		(23,491	)
Restricted stock units cancelled		(4,149	)		(1,638	)
Restricted stock units outstanding at June 30		275,620			320,506

Performance Stock Units (PSUs)

Executives participating in the Company’s Long-Term Incentive Plan for the plan year 2007 — 2009 and 2008 — 2010, earn performance stock units based on the Company’s financial performance. As part of the 2007 — 2009 plan, the units earned in 2007 and 2009 vested in February 2010. As part of the 2008 — 2010 plan, the units earned in 2009 and 2010 vested at December 31, 2010. No units were earned in 2008.

Executives participating in the Company’s Long-Term Incentive Plan for the plan year 2010 — 2012, earn performance stock units and cash. Units and cash earned during 2010 and any units and cash earned during 2011 will vest at December 31, 2012.

Executives participating in the Company’s Long-Term Incentive Plan for the plan year 2011 — 2013, earn performance stock units and cash. Any units and cash earned during 2011 will vest at December 31, 2013.

The following table provides details of the performance stock units earned under the Company’s Long-Term Incentive Plans for the six months ended June 30:

	Long-Term Incentive Plan Years
	2007-2009			2008-2010
Performance stock units outstanding at January 1, 2010		559,951			290,860
Accrued dividend equivalents		—			3,138
Performance stock units settled		(559,951	)		—
Performance stock units outstanding at June 30, 2010		—			293,998
		2008-2010			2010-2012
Performance stock units outstanding at January 1, 2011		480,858			60,082
Accrued dividend equivalents		—			602
Performance stock units settled		(480,858	)		—
Performance stock units outstanding at June 30, 2011		—			60,684

The Company’s restricted stock units and performance stock units are not participating securities. These units will be converted into shares of Company common stock in accordance with the distribution date indicated in the agreements. Restricted stock units earn dividend equivalents from the time of the award until distribution is made in common shares. Performance stock units earn dividend equivalents from the time the units have been earned based upon Company performance metrics until distribution is made in common shares. Dividend equivalents are only earned subject to vesting of the underlying restricted stock units or performance stock units, accordingly, such units do not represent participating securities.