Share Options And Awards

9 Months Ended

Sep. 30, 2011

Share Options And Awards [Abstract]

Share Options And Awards

Note 17. Share Options and Awards

In April 2011, our Long-Term Incentive Plan for the issuance of options and share awards expired, and issued options of 3.6 million remain outstanding as of September 30, 2011. The share options granted under this plan to non-officers vest over a three-year period beginning after the grant date, and share options and restricted shares for officers vest over a five-year period after the grant date. Restricted shares granted to trust managers and share options or awards granted to retirement eligible employees are expensed immediately.

In May 2010, our shareholders approved the adoption of the Amended and Restated 2010 Long-Term Incentive Plan, under which 3.0 million of our common shares were reserved for issuance, and options and share awards of 2.1 million are available for future grant at September 30, 2011. This plan expires in May 2020. Currently, these share options granted to non-officers vest ratably over a three-year period beginning after the grant date, and share options and restricted shares for officers vest ratably over a five-year period after the grant date. Restricted shares granted to trust managers and share options or awards granted to retirement eligible employees are expensed immediately. Restricted shares have the same rights of a shareholder, including the right to vote and receive dividends, except as otherwise provided by our Management Development and Executive Compensation Committee.

The grant price for both the Long-Term Incentive Plan and the Amended and Restated 2010 Long-Term Incentive Plan (collectively, the "Plans") is calculated as an average of the high and low of the quoted fair value of our common shares on the date of grant. In the Plans, these options generally expire upon the earlier of termination of employment or 10 years from the date of grant, and restricted shares for officers and trust managers are granted at no purchase price. Our policy is to recognize compensation expense for equity awards ratably over the vesting period, except for retirement eligible amounts. For the three months ended September 30, 2011 and 2010, compensation expense, net of forfeitures, associated with share options and restricted shares totaled $1.4 million and $1.3 million, respectively, of which $.3 million was capitalized for both the three months ended September 30, 2011 and 2010. For the nine months ended September 30, 2011 and 2010, compensation expense, net of forfeitures, associated with share options and restricted shares totaled $4.9 million and $3.7 million, of which $1.1 million and $.9 million was capitalized, respectively.

The fair value of share options and restricted shares is estimated on the date of grant using the Black-Scholes option pricing method based on the expected weighted average assumptions in the following table. The dividend yield is an average of the historical yields at each record date over the estimated expected life. We estimate volatility using our historical volatility data for a period of 10 years, and the expected life is based on historical data from an option valuation model of employee exercises and terminations. The risk-free rate is based on the U.S. Treasury yield curve.The fair value and weighted average assumptions are as follows:

	Nine Months Ended September 30,
	2011		2010
Fair value per share option	$	5.68	$	5.42
Dividend yield		5.3%		5.3%
Expected volatility		39.6%		38.8%
Expected life (in years)		6.2		6.2
Risk-free interest rate		2.4%		2.9%

Following is a summary of the option activity for the nine months ended September 30, 2011:

	Shares Under Option			Weighted Average Exercise Price
Outstanding, January 1, 2011		4,614,272			$	27.62
Granted		483,459				24.87
Forfeited or expired		(52,379	)			26.12
Exercised		(254,524	)			18.47
Outstanding, September 30, 2011		4,790,828			$	27.84

The total intrinsic value of options exercised during the three and nine months ended September 30, 2011 was $.3 million and $1.8 million, respectively. The total intrinsic value of options exercised during the three and nine months ended September 30, 2010 was $.2 million and $.9 million, respectively. As of September 30, 2011 and December 31, 2010, there was approximately $4.3 million and $3.8 million, respectively, of total unrecognized compensation cost related to unvested share options, which is expected to be amortized over a weighted average of 2.3 years and 2.5 years, respectively.

The following table summarizes information about share options outstanding and exercisable at September 30, 2011:

	Outstanding							Exercisable
Range of Exercise Prices	Number		Weighted Average Remaining Contractual Life	Weighted Average Exercise Price		Aggregate Intrinsic Value (000's)		Number		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life	Aggregate Intrinsic Value (000's)
$ 11.85 - $17.78		968,920	7.4 years	$	11.85				434,519	$	11.85	7.4 years
$ 17.79 - $26.69		1,448,394	6.3 years	$	23.71				593,753	$	23.44	2.3 years
$ 26.70 - $40.05		1,899,293	4.5 years	$	34.26				1,641,172	$	34.58	4.2 years
$ 40.06 - $49.62		474,221	5.2 years	$	47.46				391,425	$	47.46	5.2 years
Total		4,790,828	5.7 years	$	27.84	$	-		3,060,869	$	30.84	4.4 years	$	-

A summary of the status of unvested restricted shares for the nine months ended September 30, 2011 is as follows:

	Unvested Restricted Share Awards			Weighted Average Grant Date  Fair Value
Outstanding, January 1, 2011		396,797		$	19.32
Granted		158,040			24.89
Vested		(118,582	)		20.36
Forfeited		(14,487	)		20.73
Outstanding, September 30, 2011		421,768		$	21.07

As of September 30, 2011 and December 31, 2010, there was approximately $5.7 million and $5.1 million, respectively, of total unrecognized compensation cost related to unvested restricted shares, which is expected to be amortized over a weighted average of 2.6 years and 2.8 years, respectively.