Capital Stock

12 Months Ended

Dec. 31, 2011

Capital Stock [Abstract]

Capital Stock

9.     Capital Stock

Common stock

Changes in outstanding Common Stock for the years ended December 31, 2011, 2010 and 2009 were as follows:

	2011		2010		2009
	(In thousands of shares)
Outstanding, beginning of year		93,143		91,673		91,140
Shares issued upon exercise of options		671		677		18
Shares issued under employee stock purchase plan		—		—		32
Shares issued for grants of time vested restricted stock		684		773		229
Shares issued upon vesting of performance units		—		20		254
Outstanding, end of year		94,498		93,143		91,673

Preferred stock and Warrant

We are authorized to issue up to 1,000,000 shares of Preferred Stock, $0.01 par value. There was no outstanding preferred stock at December 31, 2011, 2010 or 2009.

In June 2000, we completed the sale of 120,000 shares of Series B Convertible Preferred Stock, $0.01 par value per share (the “Series B Preferred Stock”), and a warrant (the “Series B Warrant”) to purchase up to 1,900,000 shares of our common stock at an exercise price of $10.075 per share, subject to anti-dilution adjustments. Prior to 2006, all outstanding shares of the Series B Preferred Stock were converted to common stock. The Series B Warrant was originally issued with a seven year life, expiring June 1, 2007. This warrant contained certain registration provisions, which, if not met, reduced the exercise price of the warrant by 2.5%, for each year we were not in compliance with the registration requirements, and extended the term of the warrant. Effective May 1, 2009, we became compliant with the registration requirements for the warrant. Previously, because of a restatement of our earnings which occurred in 2006, we were not in compliance with these requirements which resulted in adjustments to the exercise price and extended the term of the warrant. As of December 31, 2011, the Series B Warrant, as adjusted for certain anti-dilution provisions, remained outstanding and provided for the right to purchase up to approximately 2.1 million shares of our common stock at an exercise price of $9.01. The Series B Warrant was not exercised and expired by its terms in February 2012.

Treasury stock

During 2011, 2010 and 2009, 72,721, 27,134, and 104,824 shares were repurchased, respectively, for an aggregate price of $0.6 million, $0.2 million, $0.3 million, respectively, representing employee shares surrendered in lieu of taxes under vesting of restricted stock awards.

All of the shares repurchased are held as treasury stock. During 2011, 2010 and 2009, 35,646, 59,804 and 23,468 shares of treasury stock were re-issued, respectively, pursuant to our employee stock purchase plan. We record treasury stock purchases under the cost method whereby the entire cost of the acquired stock is recorded as treasury stock.

Share repurchase program

In February 2012, our Board of Directors approved a share repurchase program that authorizes the Company to purchase up to $50.0 million of its outstanding shares of common stock. These purchases will be funded with a combination of cash generated from operations and borrowings under the Company’s revolving credit facility, and the repurchase program has no specific term. The Company may repurchase shares in the open market or as otherwise determined by management, subject to market conditions, business opportunities and other factors. The Company’s management has been authorized to establish trading plans under Rule 10b5-1 of the Securities Exchange Act of 1934, which we intend to establish as soon as practicable, as part of the share repurchase program.