We have share-based compensation plans to retain employees and non-employee directors and to more closely align their interests with those of our shareholders.

The 2005 Equity Incentive Plan (the “2005 Plan”) and the 2013 Equity Incentive Plan (the “2013 Plan”) permit grants of restricted stock, restricted stock units, performance stock, performance units, stock appreciation rights, stock options, as well as other share-based awards to eligible employees. The 2013 Plan also permits cash awards to eligible employees. The 2005 Plan was replaced by the 2013 Equity Incentive Plan effective in February 2013. No further grants of awards will be made under the 2005 Plan.

Directors are eligible for share-based awards through the Non-Employee Directors' Equity Plan (the “Directors' Plan”). To date, we have granted only deferred stock units under the Directors' Plan. There are also outstanding stock options granted to directors under a prior plan, the Non-Employee Directors' Stock Option Plan (the “Prior Directors' Plan”).

At June 30, 2014, outstanding awards under these plans include performance share units (“PSUs”), market share units (“MSUs”), restricted stock units (“RSUs”), deferred stock units (“DSUs”) and stock options.

We have a compensation recoupment policy that requires the return of compensation to the Company under certain circumstances. In the second quarter of 2014, we concluded that employees and the Company did not have a mutual understanding of the terms and conditions of equity awards subject to the policy because the policy provided the Company with discretion as to how the policy could be applied. As a result, we concluded that there was not a grant date for the awards for accounting purposes as described in ASC Topic 718 Stock Compensation. We recognized $4.2 million of expense during the second quarter of 2014 ($3.4 million net of tax) for the cumulative effect of this accounting error. Prior periods were not materially affected. We modified our recoupment policy in July 2014 to establish a grant date for accounting purposes.

Nonvested Share Activity - MSUs and PSUs
			Number of shares

	(in thousands of shares)		PSUs	MSUs	Total

	Balance as of December 31, 2013		199.3	96.2	295.5
	Granted		186.8	82.9	269.7
	Cancelled awards		(2.7)	-	(2.7)
		Balance as of June 30, 2014	383.4	179.1	562.5

Nonvested Share Activity - RSUs and DSUs
			Number of shares

	(in thousands of shares)		RSUs	DSUs	Total

	Balance as of December 31, 2013		396.4	19.2	415.6
	Granted		128.7	28.3	157.0
	Cancelled awards		(5.6)	-	(5.6)
	Vested		(65.3)	(19.2)	(84.5)
		Balance as of June 30, 2014	454.2	28.3	482.5