14. Stock Incentive Plans

Our Amended and Restated 2005 Long-Term Incentive Plan authorizes up to 6,200,000 shares of common stock to be issued at the discretion of the Compensation Committee of the Board of Directors. The 2005 Plan replaced the 1995 Stock Incentive Plan and the Stock Plan for Non-Employee Directors. The options granted to officers and key employees under the 1995 Plan continued to vest through 2010 and expire ten years from the date of grant. Our non-employee directors, officers and key employees are eligible to participate in the 2005 Plan. The 2005 Plan allows for the issuance of, among other things, stock options, restricted stock, deferred stock units and dividend equivalent rights. Vesting periods for options, deferred stock units and restricted shares generally range from three years for non-employee directors to five years for officers and key employees. Options expire ten years from the date of grant.

Valuation Assumptions

The fair value of each option grant is estimated on the date of grant using the Black-Scholes-Merton option pricing model with the following weighted-average assumptions:


	Six Months Ended
	June 30, 2011			June 30, 2010
Dividend yield		5.74	%		6.28	%
Expected volatility		34.80	%		34.08	%
Risk-free interest rate		2.87	%		3.23	%
Expected life (in years)		7.0			7.0
Weighted-average fair value	$	9.60		$	7.82

The dividend yield represented the dividend yield of our common stock on the dates of grant. Our computation of expected volatility was based on historical volatility. The risk-free interest rates used were the 7-year U.S. Treasury Notes yield on the date of grant. The expected life was based on historical experience of similar awards, giving consideration to the contractual terms, vesting schedules and expectations regarding future employee behavior.

Option Award Activity

The following table summarizes information about stock option activity for the six months ended June 30, 2011:


	Number of			Weighted		Weighted Average		Aggregate
	Shares			Average		Remaining		Intrinsic
Stock Options	(000's)			Exercise Price		Contract Life (years)		Value ($000's)
Options at beginning of year		1,207		$	39.45		8.0
Options granted		289			49.17
Options exercised		(117	)		37.68
Options terminated		(6	)		42.87

Options at end of period		1,373		$	41.63		7.7	$	14,835

Options exercisable at end of period		542		$	38.74		6.1	$	7,421
Weighted average fair value of options granted during the period				$	9.60

The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying options and the quoted price of our common stock for the options that were in-the-money at June 30, 2011. During the six months ended June 30, 2011 and 2010, the aggregate intrinsic value of options exercised under our stock incentive plans was $1,686,000 and $550,000, respectively (determined as of the date of option exercise). Cash received from option exercises under our stock incentive plans was $4,401,000 for the six months ended June 30, 2011.

As of June 30, 2011, there was approximately $4,701,000 of total unrecognized compensation cost related to unvested stock options granted under our stock incentive plans. That cost is expected to be recognized over a weighted average period of four years. As of June 30, 2011, there was approximately $16,084,000 of total unrecognized compensation cost related to unvested restricted stock granted under our stock incentive plans. That cost is expected to be recognized over a weighted average period of three years.

The following table summarizes information about non-vested stock incentive awards as of June 30, 2011 and changes for the six months ended June 30, 2011: