STOCK AWARD PLANS (Tables)

3 Months Ended

Mar. 31, 2014

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 ended March 31, 2014 and 2013 were as follows (in thousands):

	Three months ended March 31,
	2014			2013
Compensation cost		$	2,153		$	2,134
Income tax benefit		$	816		$	807

Summary of stock option activity

The following is a summary of the stock option activity under the employee plan described above for the three months ended March 31, 2014:

	Outstanding Non- Qualified or Nonincentive Stock Awards			Weighted Average Exercise Price
Outstanding at December 31, 2013		379,604		$	55.42
Granted		73,191		$	98.49
Exercised		(45,409	)	$	47.77
Forfeited		(12,576	)	$	68.89
Outstanding at March 31, 2014		394,810		$	63.85

The following table summarizes information about the Company’s outstanding and exercisable stock options under the employee plan at March 31, 2014:

		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		68,012		2.9	$	32.62			68,012		$	32.62
$	46.74		73,496		3.8	$	46.74			73,496		$	46.74
$	65.28 - $70.65		178,144		5.3	$	68.35			88,844		$	67.55
$	86.96 - $96.85		37,730		6.8	$	93.89			─		$	─
$	101.46 - $104.37		37,428		6.9	$	102.53			─		$	─
$	31.35 - $104.37		394,810		4.9	$	63.85	$14,812,000		230,352		$	50.60	$11,668,000

The following is a summary of the restricted stock award activity under the employee plan described above for the three months ended March 31, 2014:

	Unvested Restricted Stock Award Shares			Weighted Average Grant Date Fair Value Per Share
Nonvested balance at December 31, 2013		399,278		$	54.92
Granted		91,735		$	96.47
Vested		(141,382	)	$	45.60
Forfeited		(25,810	)	$	61.54
Nonvested balance at March 31, 2014		323,821		$	70.23

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 to a director when first elected 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 March 31, 2014, 610,041 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 independent directors.

The following is a summary of the stock option activity under the director plan described above for the three months ended March 31, 2014:

	Outstanding Non- Qualified or Nonincentive Stock Awards			Weighted Average Exercise Price
Outstanding at December 31, 2013		320,322		$	50.64
Exercised		(57,988	)	$	37.29
Outstanding at March 31, 2014		262,334		$	53.60

The following table summarizes information about the Company’s outstanding and exercisable stock options under the director plan at March 31, 2014:

		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
$	20.28 — $29.60		30,000		3.5	$	25.87			30,000	$	25.87
$	35.17 — $36.82		32,048		2.6	$	36.09			32,048	$	36.09
$	41.24 — $56.45		97,022		6.1	$	52.16			97,022	$	52.16
$	61.89 — $62.48		54,306		8.2	$	62.37			54,306	$	62.37
$	75.17		48,958		9.1	$	75.17			48,958	$	75.17
$	20.28 — $75.17		262,334		6.4	$	53.60	$ 12,501,000		262,334	$	53.60	$ 12,501,000

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 three months ended March 31, 2014:

	Unvested Restricted Stock Award Shares			Weighted Average Grant Date Fair Value Per Share
Nonvested balance at December 31, 2013		399,278		$	54.92
Granted		91,735		$	96.47
Vested		(141,382	)	$	45.60
Forfeited		(25,810	)	$	61.54
Nonvested balance at March 31, 2014		323,821		$	70.23

The following is a summary of the restricted stock award activity under the director plan described above for the three months ended March 31, 2014:

	Unvested Restricted Stock Award Shares			Weighted Average Grant Date Fair Value Per Share
Nonvested balance at December 31, 2013		384			$	75.65
Vested		(384	)		$	75.65
Nonvested balance at March 31, 2014	─			─

Summary of Stock option valuation assumptions

The key input variables used in valuing the options during the three months ended March 31, 2014 and 2013 were as follows:

	Three months ended March 31,
	2014			2013
Dividend yield	None			None
Average risk-free interest rate		1.8	%		1.0	%
Stock price volatility		33	%		34	%
Estimated option term	Six years			Six years