STOCK AWARD PLANS (Tables)

9 Months Ended

Sep. 30, 2013

Compensation cost breakdown in statement of earnings

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 three months and nine months ended September 30, 2013 and 2012 were as follows (in thousands):

	Three months ended September 30,				Nine months ended September 30,
	2013		2012		2013		2012

Compensation cost	$	3,860	$	2,842	$	8,921	$	7,331
Income tax benefit	$	1,459	$	1,086	$	3,372	$	2,801

Summary of stock option activity

The following is a summary of the stock option activity under the employee plan described above for the nine months ended September 30, 2013:

	Outstanding Non- Qualified or Nonincentive Stock Awards			Weighted Average Exercise Price
Outstanding at December 31, 2012		351,173		$	45.54
Granted		111,527		$	70.94
Exercised		(72,932	)	$	30.20
Outstanding at September 30, 2013		389,768		$	55.68

The following is a summary of the stock option activity under the director plan described above for the nine months ended September 30, 2013:

	Outstanding Non- Qualified or Nonincentive Stock Options			Weighted Average Exercise Price
Outstanding at December 31, 2012		345,938		$	45.84
Granted		54,958		$	75.17
Exercised		(54,000	)	$	39.36
Outstanding at September 30, 2013		346,896		$	51.50

Summary of outstanding and exercisable stock options

The following table summarizes information about the Company’s outstanding and exercisable stock options under the employee plan at September 30, 2013:

				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
$	31.35 - 36.35		79,199		3.4	$	32.62				79,199	$	32.62
$	46.74		99,136		4.3	$	46.74				65,606	$	46.74
$	65.28 - 66.72		99,906		5.2	$	65.80				35,393	$	65.77
$	70.65		109,560		6.1	$	70.65				5,136	$	70.65
$	86.96		1,967		6.8	$	86.96				0	$	N/	A
$	31.35 - 86.96		389,768		4.9	$	55.68	$	12,032,000		185,334	$	45.00		$	7,700,000

The following table summarizes information about the Company’s outstanding and exercisable stock options under the director plan at September 30, 2013:

				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
$	17.88		12,000		0.6	$	17.88				12,000	$	17.88
$	20.28-29.60		36,000		4.2	$	26.49				36,000	$	26.49
$	35.17-36.82		50,036		2.9	$	35.80				50,036	$	35.80
$	41.24-56.45		133,596		6.3	$	52.48				133,596	$	52.48
$	61.89-62.48		60,306		8.7	$	62.38				60,306	$	62.38
$	75.17		54,958		9.6	$	75.17				478	$	75.17
$	17.88-75.17		346,896		6.3	$	51.50	$	12,160,000		292,416	$	47.09	$	11,540,000

Summary of restricted stock award activity

The following is a summary of the restricted stock award activity under the employee plan described above for the nine months ended September 30, 2013:

	Unvested Restricted Stock Award Shares			Weighted Average Grant Date Fair Value Per Share
Nonvested balance at December 31, 2012		418,128		$	45.39
Granted		139,613		$	69.79
Vested		(147,192	)	$	44.48
Forfeited		(8,497	)	$	60.26
Nonvested balance at September 30, 2013		402,052		$	54.81

The following is a summary of the restricted stock award activity under the director plan described above for the nine months ended September 30, 2013:

	Unvested Restricted Stock Award Shares			Weighted Average Grant Date Fair Value Per Share
Nonvested balance at December 31, 2012		348		$	62.99
Granted		10,536		$	75.65
Vested		(1,116	)	$	71.70
Nonvested balance at September 30, 2013		9,768		$	75.65

Summary of Stock option valuation assumptions

The weighted average per share fair value of stock options granted during the nine months ended September 30, 2013 and 2012 was $25.14 and $22.15, respectively. The fair value of the stock options granted during the nine months ended September 30, 2013 and 2012 was $4,185,000 and $3,461,000, 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 options during the nine months ended September 30, 2013 and 2012 were as follows:

	Nine months ended September 30,
	2013			2012
Dividend yield	None			None
Average risk-free interest rate		1.1	%		1.1	%
Stock price volatility		34	%		33	%
Estimated option term	Six years or seven years			Six years or seven years