Note 4—Capital Stock

•

Common stock, no par value—180,000,000 shares authorized.

•

Second cumulative preferred voting stock, $10 par value— 1,000,000 shares authorized; none issued.

•

4¹/2% cumulative preferred nonvoting stock, $50 par value—100,000 shares authorized; 71,373 shares issued and 52,878 shares ($1.8 million) held in treasury. There were no treasury share purchases during the three years ended December 31, 2011.

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, 2009		62,081,391		(2,378,462	)		(23,916,639	)	$	69,607		$	(12,416	)	$	(256,077	)
Restricted stock awards		—		178,692			—			(934	)		934			—
Restricted stock expense		—		—			—			3,128			—			—
Restricted stock forfeitures		—		—			(8,369	)		(101	)		—			—
Stock options exercised		—		25,566			—			122			133			—
Stock option expense		—		—			—			2,620			—			—
Stock option forfeitures		—		—			—			(155	)		—			—
Performance stock expense		—		—			—			375			—			—
Performance stock forfeitures		—		—			—			(7	)		—			—
Tax provision related to stock plans		—		—			—			(386	)		—			—
Treasury shares purchased		—		—			(9,661	)		—			—			(206	)

Balances December 31, 2009		62,081,391		(2,174,204	)		(23,934,669	)		74,269			(11,349	)		(256,283	)
Restricted stock awards		—		162,925			—			(850	)		850			—
Restricted stock expense		—		—			—			4,103			—			—
Restricted stock forfeitures		—		—			(1,092	)		(40	)		—			—
Stock options exercised		—		650,565			—			4,413			3,396			—
Stock option expense		—		—			—			2,748			—			—
Performance stock expense		—		—			—			524			—			—
Tax benefit related to stock plans		—		—			—			3,462			—			—
Treasury shares purchased		—		—			(265,190	)		—			—			(7,572	)

Balances December 31, 2010		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

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.