(9) Stock Award Plans

The Company has share-based compensation plans which are described below. The compensation cost that has been charged against earnings for the Company's stock award plans and the income tax benefit recognized in the statement of earnings for stock awards for the years ended December 31, 2012, 2011 and 2010 were as follows (in thousands):

	2012		2011		2010
Compensation cost	$	9,796	$	9,228	$	10,867
Income tax benefit	$	3,644	$	3,534	$	4,162

The Company has an employee stock award plan for selected officers and other key employees which provides for the issuance of stock options and restricted stock. Under the plan, the exercise price for each option equals the fair market value per share of the Company's common stock on the date of grant. The terms of the options prior to January 25, 2010 are five years and vest ratably over three years. Options granted on or after January 25, 2010 have terms of seven years and vest ratably over three years. No performance awards payable in stock have been awarded under the plan. At December 31, 2012, 2,909,458 shares were available for future grants under the employee plan and no outstanding stock options under the employee plan were issued with stock appreciation rights.

On February 15, 2012, the Board of Directors approved amendments to the employee plan, subject to stockholder approval, to (1) increase the number of shares that may be issued under the plan from 3,000,000 to 5,000,000 shares, and (2) increase the maximum amount of cash that may be paid to any participant pursuant to any performance awards under the plan during any calendar year from $3,000,000 to $5,000,000. The amendments were approved by the stockholders at the Annual Meeting of Stockholders held on April 24, 2012.

The following is a summary of the stock option activity under the employee plans described above for the years ended December 31, 2012, 2011 and 2010:

	Outstanding Non-Qualified or Nonincentive Stock Awards			Weighted Average Exercise Price
Outstanding at December 31, 2009		640,483		$	33.39
Granted		103,999		$	32.60
Exercised		(228,543	)	$	28.36
Canceled or expired		(81,492	)	$	45.73

Outstanding at December 31, 2010		434,447		$	33.53
Granted		103,021		$	47.01
Exercised		(91,794	)	$	32.75
Canceled or expired		—		$	—

Outstanding at December 31, 2011		445,674		$	36.81
Granted		99,906		$	65.80
Exercised		(191,955	)	$	35.65
Canceled or expired		(2,452	)	$	58.28
Outstanding at December 31, 2012		351,173		$	45.54

Under the employee plans, stock options exercisable were 149,544, 226,900 and 200,210 at December 31, 2012, 2011 and 2010, respectively.

The following table summarizes information about the Company's outstanding and exercisable stock options under the employee plan at December 31, 2012:

	Options Outstanding								Options Exercisable
Range of Exercise Prices	Number Outstanding		Weighted Average Remaining Contractual Life in Years		Weighted Average Exercise Price		Aggregated Intrinsic Value		Number Exercisable		Weighted Average Exercise Price		Aggregated Intrinsic Value
$23.98 — $32.56		126,698		3.5	$	30.67				93,363	$	30.03
$34.40 — $36.35		24,000		1.4	$	34.73				22,666	$	34.63
$46.74		100,569		5.0	$	46.74				33,515	$	46.74
$65.28 — $66.72		99,906		6.1	$	65.80				─	$	─
$23.98 — $66.72		351,173		4.5	$	45.54	$	5,741,000		149,544	$	34.47	$	4,100,000

The following is a summary of the restricted stock award activity under the employee plans described above for the years ended December 31, 2012, 2011 and 2010:

	Unvested Restricted Stock Award Shares			Weighted Average Grant Date Fair Value Per Share
Nonvested balance at December 31, 2009		542,679		$	30.70
Granted		197,994		$	33.42
Vested		(234,831	)	$	39.34
Forfeited		(6,507	)	$	32.00
Nonvested balance at December 31, 2010		499,335		$	31.98
Granted		150,612		$	46.50
Vested		(163,480	)	$	33.27
Forfeited		(10,835	)	$	38.90
Nonvested balance at December 31, 2011		475,632		$	36.43
Granted		121,953		$	67.79
Vested		(168,166	)	$	35.43
Forfeited		(11,291	)	$	58.64
Nonvested balance at December 31, 2012		418,128		$	45.39

The Company has a director stock award plan for nonemployee directors of the Company which provides for the issuance of stock options and restricted stock. The director plan provides for the automatic grants of stock options and restricted stock to nonemployee directors on the date of first election as a director and after each annual meeting of stockholders. In addition, the director plan allows for the issuance of stock options or restricted stock in lieu of cash for all or part of the annual director fee at the option of the director. The exercise prices for all options granted under the plan are equal to the fair market value per share of the Company's common stock on the date of grant. The terms of the options are ten years. The options granted when first elected a director vest immediately. The options granted and restricted stock issued after each annual meeting of stockholders vest six months after the date of grant. Options granted and restricted stock issued in lieu of cash director fees vest in equal quarterly increments during the year to which they relate. At December 31, 2012, 675,535 shares were available for future grants under the director plan. The director stock award plan is intended as an incentive to attract and retain qualified and competent independent directors.

On February 15, 2012, the Board of Directors approved amendments to the director plan, subject to stockholder approval, to increase the number of shares that may be issued under the plan from 1,000,000 to 1,500,000 shares. The amendment was approved by the stockholders at the Annual Meeting of Stockholders held on April 24, 2012.

The following is a summary of the stock option activity under the director plan described above for the years ended December 31, 2012, 2011 and 2010:

	Outstanding Non-Qualified or Nonincentive Stock Awards			Weighted Average Exercise Price
Outstanding at December 31, 2009		301,937		$	33.43
Granted		57,492		$	41.24
Exercised		(3,000	)	$	10.67
Outstanding at December 31, 2010		356,429		$	34.88
Granted		60,552		$	56.42
Exercised		(63,356	)	$	32.17
Outstanding at December 31, 2011		353,625		$	39.05
Granted		66,306		$	62.39
Exercised		(73,993	)	$	28.22
Outstanding at December 31, 2012		345,938		$	45.84

Under the director plan, options exercisable were 345,360, 352,987 and 355,555 at December 31, 2012, 2011 and 2010, respectively.

The following table summarizes information about the Company's outstanding and exercisable stock options under the director plan at December 31, 2012:

	Options Outstanding								Options Exercisable
Range of Exercise Prices	Number Outstanding		Weighted Average Remaining Contractual Life in Years		Weighted Average Exercise Price		Aggregate Intrinsic Value		Number Exercisable		Weighted Average Exercise Price		Aggregate Intrinsic Value
$12.69 — $17.88		24,000		0.8	$	15.29				24,000	$	15.29
$20.28 — $29.60		36,000		5.0	$	26.49				36,000	$	26.49
$35.17 — $36.82		62,036		3.7	$	35.84				62,036	$	35.84
$41.24 — $56.45		157,596		7.0	$	51.89				157,596	$	51.89
$61.89 — $62.48		66,306		7.9	$	62.39				65,728	$	62.39
$12.69 — $62.48		345,938		6.0	$	45.84	$	5,551,000		345,360	$	45.81	$	5,552,000

The following is a summary of the restricted stock award activity under the director plan described above for the years ended December 31, 2012, 2011 and 2010:

	Unvested Restricted Stock Award Shares			Weighted Average Grant Date Fair Value Per Share
Nonvested balance at December 31, 2009		732		$	29.77
Granted		11,097		$	41.33
Vested		(11,304	)	$	40.58
Nonvested balance at December 31, 2010		525		$	41.33
Granted		11,990		$	56.85
Vested		(10,767	)	$	55.90
Nonvested balance at December 31, 2011		1,748		$	58.07
Granted		10,383		$	62.99
Vested		(11,783	)	$	62.26
Nonvested balance at December 31, 2012		348		$	62.99

The total intrinsic value of all stock options exercised under all of the Company's plans was $6,768,000, $4,072,000 and $2,835,000 for the years ended December 31, 2012, 2011 and 2010, respectively. The actual tax benefit realized for tax deductions from stock option exercises was $2,518,000, $1,560,000 and $1,086,000 for the years ended December 31, 2012, 2011 and 2010, respectively.

The total intrinsic value of all the restricted stock vestings under all of the Company's plans was $11,878,000, $7,921,000 and $8,809,000 for the years ended December 31, 2012, 2011 and 2010, respectively. The actual tax benefit realized for tax deductions from restricted stock vestings was $4,418,000, $3,034,000 and $3,374,000 for the years ended December 31, 2012, 2011 and 2010, respectively.

As of December 31, 2012, there was $2,151,000 of unrecognized compensation cost related to nonvested stock options and $13,706,000 related to restricted stock. The stock options are expected to be recognized over a weighted average period of approximately 1.3 years and restricted stock over approximately 2.6 years. The total fair value of stock options vested was $2,846,000, $2,618,000 and $3,491,000 during the years ended December 31, 2012, 2011 and 2010, respectively. The fair value of the restricted stock vested was $11,878,000, $7,921,000 and $8,809,000 for the years ended December 31, 2012, 2011 and 2010, respectively.

The weighted average per share fair value of stock options granted during the years ended December 31, 2012, 2011 and 2010 was $22.21, $18.84 and $13.81, respectively. The fair value of the stock options granted during the years ended December 31, 2012, 2011 and 2010 was $3,691,000, $3,081,000 and $2,231,000, respectively. The Company currently uses treasury stock shares for restricted stock grants and stock option exercises. The fair value of each stock option was determined using the Black-Scholes option pricing model. The key input variables used in valuing the stock options during the years ended December 31, 2012, 2011 and 2010 were as follows:

	2012			2011				2010
Dividend yield	None			None			None
Average risk-free interest rate		1.1	%		2.4	%		3.1	%
Stock price volatility		33	%		33	%		33	%
Estimated option term	Six years or seven years			Six years or seven years			Six years or seven years