Stock-Based Compensation

12 Months Ended

Dec. 31, 2013

Share-based Compensation [Abstract]

Stock-based compensation

Stock-Based Compensation

The Company has several stock-based compensation plans under which it is currently authorized to grant restricted stock and stock. As of December 31, 2013, there are 6.2 million remaining shares available to grant under these plans. The Company generally issues new shares of common stock to satisfy restricted stock, stock and performance share awards.

Total stock-based compensation expense (after tax) was $3.9 million, $4.0 million and $3.5 million in 2013, 2012 and 2011, respectively.

As of December 31, 2013, total remaining unrecognized compensation expense related to stock-based compensation was approximately $7.0 million (before income taxes) which will be amortized over a weighted average period of 1.6 years.

Stock options

The Company had granted stock options to directors, key employees and employees. The Company has not granted stock options since 2003 and as of December 31, 2013 and 2012, there were no stock options outstanding.

The Company received cash of $88,000 and $5.7 million from the exercise of stock options for the years ended December 31, 2012 and 2011, respectively. The aggregate intrinsic value of options exercised during the years ended December 31, 2012 and 2011, was $60,000 and $3.3 million, respectively.

Stock awards

Nonemployee directors may receive shares of common stock instead of cash in payment for directors' fees under the nonemployee director stock compensation plan. There were 36,713 shares with a fair value of $1.1 million, 53,888 shares with a fair value of $1.1 million and 55,141 shares with a fair value of $1.1 million issued under this plan during the years ended December 31, 2013, 2012 and 2011, respectively.

A key employee of the Company received an award of 43,103 shares of common stock under a long-term incentive plan with a fair value of $930,000 during the year ended December 31, 2012.

Performance share awards

Since 2003, key employees of the Company have been awarded performance share awards each year. Entitlement to performance shares is based on the Company's total shareholder return over designated performance periods as measured against a selected peer group.

Target grants of performance shares outstanding at December 31, 2013, were as follows:

Grant Date	Performance Period	Target Grant of Shares
February 2011	2011-2013	254,514
February 2012	2012-2014	251,196
March 2013	2013-2015	244,281

Participants may earn from zero to 200 percent of the target grant of shares based on the Company's total shareholder return relative to that of the selected peer group. Compensation expense is based on the grant-date fair value as determined by Monte Carlo simulation. The blended volatility term structure ranges are comprised of 50 percent historical volatility and 50 percent implied volatility. Risk-free interest rates were based on U.S. Treasury security rates in effect as of the grant date. Assumptions used for grants of performance shares issued in 2013, 2012 and 2011 were:

				2013						2012						2011
Grant-date fair value					$29.01						$17.18						$19.99
Blended volatility range	16.10	%	-	19.39		%	24.29	%	-	25.81		%	23.20	%	-	32.18		%
Risk-free interest rate range	.09	%	-	.40		%	.10	%	-	.35		%	.09	%	-	1.34		%
Discounted dividends per share					$2.12						$1.19						$1.23

There were no performance shares that vested in 2013, 2012 or 2011.

A summary of the status of the performance share awards for the year ended December 31, 2013, was as follows:

	Number of Shares		Weighted Average Grant-Date Fair Value
Nonvested at beginning of period	786,136		$	18.17
Granted	264,614		29.01
Vested	—		—
Forfeited	(300,759	)	18.20
Nonvested at end of period	749,991		$	21.99