Note 9 - Shareholders' Equity

12 Months Ended

Dec. 31, 2012

Stockholders' Equity Note Disclosure [Text Block]

Note 9: Shareholders’ Equity

The Company grants stock options and restricted performance shares to employees in exchange for employee services, pursuant to the shareholder-approved 1995 Stock Option Plan, which was last amended and restated in 2012. Stock options are granted with an exercise price equal to the fair market value of the related common stock on the grant date and generally become exercisable in equal annual installments over a three-year period with each installment vesting on the anniversary date of the grant. Each stock option has a maximum ten-year term. A restricted performance share grant becomes vested after three years of being awarded, provided the Company has attained its performance goals for such three-year period.

The following table summarizes information about stock options granted under the Plans as of December 31, 2012. The intrinsic value is calculated as the difference between the market value as of December 31, 2012 and the exercise price of the shares. The market value as of December 31, 2012 was $42.59 as reported by the NASDAQ Global Select Market:

	Options Outstanding								Options Exercisable
Range of Exercise Price	Number Outstanding at 12/31/2012 (in thousands)		Aggregate Intrinsic Value (in thousands)		Weighted Average Remaining Contractual Life (yrs)		Weighted Average Exercise Price		Number Exercisable at 12/31/2012 (in thousands)		Aggregate Intrinsic Value (in thousands)		Weighted Average Remaining Contractual Life (yrs)		Weighted Average Exercise Price
$40 – 45		297	$	265		3.0	$	42		297	$	265		3.0	$	42
45 – 50		854		—		4.7		48		580		—		2.6		49
50 – 55		935		—		4.8		52		768		—		4.1		52
55 – 60		242		—		7.0		57		162		—		6.9		57
$40 - 60		2,328	$	265		4.8		50		1,807	$	265		3.7		50

The Company applies the Roll-Geske option pricing model (Modified Roll) to determine grant date fair value of stock option grants. This model modifies the Black-Scholes Model to take into account dividends and American options. During the twelve months ended December 31, 2012, 2011 and 2010, the Company granted 296 thousand, 275 thousand, and 296 thousand stock options, respectively. The following weighted average assumptions were used in the option pricing to value stock options granted in the periods indicated:

For the twelve months ended December 31,	2012			2011			2010
Expected volatility*1		21	%		18	%		17	%
Expected life in years*2		4.8			4.7			4.5
Risk-free interest rate*3		0.72	%		1.83	%		2.15	%
Expected dividend yield		3.20	%		3.14	%		2.44	%
Fair value per award	$	5.61		$	5.55		$	6.77

*1 Measured using daily price changes of Company’s stock over respective expected term of the option and the implied volatility derived from the market prices of the Company’s stock and traded options.

*2 The number of years that the Company estimates that the options will be outstanding prior to exercise

*3 The risk-free rate over the expected life based on the US Treasury yield curve in effect at the time of the grant

Employee stock option grants are being expensed by the Company over the grants’ three year vesting period. The Company issues new shares upon the exercise of options. The number of shares authorized to be issued for options at December 31, 2012 is 1,560 thousand.

A summary of option activity during the twelve months ended December 31, 2012 is presented below:

	Shares (In Thousands)			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (years)
Outstanding at January 1, 2012		2,276		$	49.34
Granted		296			45.93
Exercised		(185	)		41.18
Forfeited or expired		(59	)		50.43
Outstanding at December 31, 2012		2,328			49.53		4.8
Exercisable at December 31, 2012		1,807			49.65		3.7

A summary of the Company’s nonvested option activity during the twelve months ended December 31, 2012 is presented below:

	Shares (In Thousands)			Weighted Average Grant Date Fair Value
Nonvested at January 1, 2012		513
Granted		296
Vested		(245	)
Forfeited		(43	)
Nonvested at December 31, 2012		521		$	5.77

The weighted average estimated grant date fair value for options granted under the Company’s stock option plan during the twelve months ended December 31, 2012, 2011 and 2010 was $5.61, $5.55 and $6.77 per share, respectively. The total remaining unrecognized compensation cost related to nonvested awards as of December 31, 2012 is $1,436 thousand and the weighted average period over which the cost is expected to be recognized is 1.7 years.

The total intrinsic value of options exercised during the twelve months ended December 31, 2012, 2011 and 2010 was $767 thousand, $2,309 thousand and $5,652 thousand, respectively. The total fair value of RPSs that vested during the twelve months ended December 31, 2012, 2011 and 2010 was $734 thousand, $1,197 thousand and $594 thousand, respectively. The total fair value of options vested during the twelve months ended December 31, 2012, 2011 and 2010 was $1,321 thousand, $1,381 thousand and $1,129 thousand, respectively. The (decrease) or increase in tax benefits recognized for the tax deductions from the exercise of options totaled $(119) thousand, $(248) thousand and $1,004 thousand, respectively, for the twelve months ended December 31, 2012, 2011 and 2010.

A summary of the status of the Company’s restricted performance shares as of December 31, 2012 and 2011 and changes during the twelve months ended on those dates, follows (in thousands):

	2012			2011
Outstanding at January 1,		50			55
Granted		20			20
Issued upon vesting		(15	)		(24	)
Forfeited		(1	)		(1	)
Outstanding at December 31,		54			50

As of December 31, 2012 and 2011, the restricted performance shares had a weighted-average contractual life of 1.3 years and 1.3 years, respectively. The compensation cost that was charged against income for the Company’s restricted performance shares granted was $710 thousand and $540 thousand for the twelve months ended December 31, 2012 and 2011, respectively. There were no stock appreciation rights or incentive stock options granted in the twelve months ended December 31, 2012 and 2011.

On February 13, 2009, the Company issued 83,726 shares of Series A Fixed Rate Cumulative Perpetual Preferred Stock (“Preferred Stock”) and a warrant to purchase 246,640 shares of the Company’s common stock at an exercise price of $50.92 per share. The Preferred Stock was fully redeemed in two installments in 2009. The warrants remain outstanding at December 31, 2012.

The Company repurchases and retires its common stock in accordance with Board of Directors approved share repurchase programs. At December 31, 2012, approximately 1,488 thousand shares remained available to repurchase under such plans.

Shareholders have authorized two additional classes of stock of one million shares each, to be denominated “Class B Common Stock” and “Preferred Stock,” respectively, in addition to the 150 million shares of common stock presently authorized. At December 31, 2012, no shares of Class B Common Stock or Preferred Stock were outstanding.