Capital Stock

Preferred Stock - The Company has authorized 100,000 shares of $50 par value 4.5% cumulative preferred nonvoting stock which is callable at $52.50. There are 71,373 shares issued and 52,878 shares held in treasury at December 31, 2013. There were no treasury purchases of preferred stock during the three years ended December 31, 2013. The Company has also authorized 1,000,000 shares of $10 par value second cumulative preferred voting stock. No shares have been issued as of December 31, 2013.

Common Stock - The Company has authorized 180,000,000 shares of no par value common stock. There were 37,202,099 and 37,007,799 shares outstanding at December 31, 2013 and December 31, 2012, respectively. Common stock activity is summarized as follows:



	Shares					Dollars
(Dollars in thousands)	Issued	Stock Compensation Trust		Treasury		Common Stock			Stock Compensation Trust			Treasury Cost
Balances January 1, 2011	62,081,391	(1,360,714	)	(24,200,951	)	$	88,629		$	(7,103	)	$	(263,855	)
Restricted stock awards	—	103,815		—		(542		)	542			—
Restricted stock expense	—	—		—		4,376			—			—
Restricted stock forfeitures	—	—		(7,469	)	(6		)	—			—
Stock options exercised	—	94,115		—		825			491			—
Stock option expense	—	—		—		2,343			—			—
Performance stock expense	—	—		—		1,019			—			—
Tax benefit related to stock plans	—	—		—		632			—			—
Treasury shares purchased	—	—		(17,597	)	—			—			(624		)
Balances December 31, 2011	62,081,391	(1,162,784	)	(24,226,017	)	97,276			(6,070		)	(264,479		)
Restricted stock awards	—	136,295		—		(711		)	711			—
Restricted stock expense	—	—		—		4,891			—			—
Restricted stock forfeitures	—	—		(10,815	)	(147		)	—			—
Stock options exercised	—	223,022		—		3,141			1,165			—
Stock option expense	—	—		—		2,435			—			—
Performance stock issued	—	58,037		—		(303		)	303			—
Performance stock expense	—	—		—		2,831			—			—
Tax benefit related to stock plans	—	—		—		2,799			—			—
Treasury shares purchased	—	—		(91,330	)	—			—			(3,508		)
Other, net	—	—		—		(77		)	—			—
Balances December 31, 2012	62,081,391	(745,430	)	(24,328,162	)	112,135			(3,891		)	(267,987		)
Restricted stock awards	—	96,686		—		(505		)	505			—
Restricted stock expense	—	—		—		4,244			—			—
Restricted stock forfeitures	—	—		(7,365	)	(115		)	—			—
Stock options exercised	—	277,687		—		8,194			1,449			—
Stock option expense	—	—		—		2,825			—			—
Performance stock issued	—	67,389				(352		)	352			—
Performance stock expense	—	—		—		3,383			—			—
Tax benefit related to stock plans	—	—		—		2,246			—			—
Treasury shares purchased	—	—		(240,097	)	—			—			(11,785		)
Balances December 31, 2013	62,081,391	(303,668	)	(24,575,624	)	132,055			(1,585		)	(279,772		)

The Mine Safety Appliances Company Stock Compensation Trust was established to provide shares for certain benefit plans, including the management and non-employee directors’ equity incentive plans. Shares held by the Stock Compensation Trust, and the corresponding cost of those shares, are reported as a reduction of common shares issued. Differences between the cost of the shares held by the Stock Compensation Trust and the market value of shares released for stock-related benefits are reflected in common stock issued.

In November 2005, the Board of Directors authorized the purchase of up to $100 million of MSA common stock either through private transactions or open market transactions. The share purchase program has no expiration date. The maximum shares that may yet be purchased is calculated based on the dollars remaining under the program and the respective month-end closing share price. We do not have any other share purchase programs. The above treasury share purchases are related to stock compensation transactions.