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Capital Stock and Share Based Compensation Plans
 12 Months Ended
Dec. 31, 2011
Capital Stock and Share Based Compensation Plans [Abstract]  
Capital Stock and Share Based Compensation Plans
19. Capital Stock and Share Based Compensation Plans
Capital Stock — We have two classes of common shares, Common Voting Shares and Class A Common shares. The Class A Common shares are only entitled to vote on the election of the greater of three or one-third of the directors and other matter as required by Ohio law.
Share Repurchase Plan — Our board of directors authorized the repurchase up to $75 million of our Class A Common shares in 2010. In 2011, we repurchased a total of $51 million of shares at prices ranging from $6.55 to $9.70 per share. An additional $24 million of shares may be repurchased pursuant to the authorization. We did not repurchase any shares under this program in 2010. The shares may be repurchased from time to time at management’s discretion, either in the open market, through pre-arranged trading plans or in privately negotiated block transactions. The authorization expires December 31, 2012.
Incentive Plans — On May 13, 2010, we adopted The E.W. Scripps Company 2010 Long-Term Incentive Plan (the “Plan”). The Plan replaces The E.W. Scripps 1997 Long-Term Incentive Plan, as amended (the “1997 Plan”). The Plan permits the granting of Nonqualified Stock Options, Incentive Stock Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units and Other Stock-Based Awards. Any shares previously granted under the 1997 Plan that are subsequently forfeited, terminated, settled in cash or used to satisfy tax withholding obligations become available for issuance under the 2010 Plan. The Plan terminates on February 15, 2020.
We satisfy stock option exercises and vested stock awards with newly issued shares. As of December 31, 2011, 4.9 million shares were available for future stock compensation grants.
Stock Options — Stock options grant the recipient the right to purchase Class A Common shares at not less than 100% of the fair market value on the date the option is granted. Stock options granted to employees generally vest over a three-year period, conditioned upon the individual’s continued employment through that period. Awards vest immediately upon the retirement, death or disability of the employee or upon a change in control of Scripps or in the business in which the individual is employed. Unvested awards are forfeited if employment is terminated for other reasons. Options granted to employees prior to 2005 generally expire ten years after grant, while options granted in 2005 and later generally have eight-year terms. Stock options granted to non-employee directors generally vest over a one-year period and have a ten-year term.
The following table summarizes information about stock option transactions:
                         
            Weighted-     Range of  
    Number     Average     Exercise  
    of Shares     Exercise Price     Prices  
Outstanding at December 31, 2008
    12,648,278     $ 9.20     $ 5-11  
Exercised in 2009
    (554,028 )     5.63       6-8  
Forfeited in 2009
    (377,269 )     8.43       5-11  
 
                   
Outstanding at December 31, 2009
    11,716,981       9.39     $ 5-11  
 
                   
 
                       
Options exercisable at December 31, 2009
    9,126,716     $ 9.36     $ 5-11  
 
                 
 
                       
Outstanding at December 31, 2009
    11,716,981     $ 9.39     $ 5-11  
Exercised in 2010
    (1,103,197 )     7.64       5-10  
Forfeited in 2010
    (111,701 )     9.75       5-11  
 
                   
 
             
Outstanding at December 31, 2010
    10,502,083       9.57     $ 6-11  
 
                   
 
                       
Options exercisable at December 31, 2010
    9,765,510     $ 9.61     $ 6-11  
 
                 
 
                       
Outstanding at December 31, 2010
    10,502,083     $ 9.57     $ 6-11  
Exercised in 2011
    (311,933 )     8.01       6-10  
Forfeited in 2011
    (95,528 )     9.53       7-11  
 
                   
 
             
Outstanding at December 31, 2011
    10,094,622       9.62     $ 7-11  
 
                   
 
                       
Options exercisable at December 31, 2011
    10,094,622     $ 9.62     $ 7-11  
 
                 
The following table presents additional information about exercises of stock options:
                         
    For the years ended December 31,  
(in thousands)   2011     2010     2009  
Cash received upon exercise
  $ 2,514     $ 8,394     $ 3,114  
Intrinsic value (market value on date of exercise less exercise price)
    446       1,935       872  
Tax benefits realized
    167       726       327  
 
                 
Information about options outstanding and options exercisable by year of grant is as follows:
(dollars in millions, except per share amounts)
                                         
                    Options Outstanding and Exercisable  
      Average             Weighted     Aggregate  
    Range of     Remaining     Options     Average     Intrinsic  
    Exercise     Term     on Shares     Exercise     Value  
Year of Grant   Prices     (in years)     Outstanding     Price     (in millions)  
2002 – expire in 2012
    8       0.19       330,987       8.06       —  
2003 – expire in 2013
    8-10       1.19       670,518       8.55       —  
2004 – expire in 2014
    10-11       2.20       925,653       10.49       —  
2005 – expire in 2013
    10-11       1.16       820,213       9.99       —  
2006 – expire in 2014
    10-11       2.19       1,790,433       10.31       —  
2007 – expire in 2015
    9-10       3.15       2,108,678       10.37       —  
2008 – expire in 2016
    7-10       4.22       3,448,140       8.84       0.5  
 
                                 
Total
  $ 7-11       2.87       10,094,622     $ 9.62     $ 0.5  
 
                             
Restricted Stock and Restricted Stock Units — Awards of Class A Common shares (“restricted stock”) and Restricted Stock Units (“RSU”) generally require no payment by the employee. RSUs are converted into an equal number of Class A Common shares when vested. These awards generally vest over a three or four year period, conditioned upon the individual’s continued employment through that period. Awards vest immediately upon the retirement, death or disability of the employee or upon a change in control of Scripps or in the business in which the individual is employed. Unvested awards may be forfeited if employment is terminated for other reasons. Awards are nontransferable during the vesting period, but the awards are entitled to all the rights of an outstanding share. There are no post-vesting restrictions on awards granted to employees and non-employee directors.
Long-term incentive compensation includes performance share awards. Performance share awards represent the right to receive an award of restricted shares if certain performance measures are met. Each award specifies a target number of shares to be issued and the specific performance criteria that must be met. The number of shares that an employee receives may be less or more than the target number of shares depending on the extent to which the specified performance measures are met or exceeded.
Information and activity for our restricted stock and RSUs is presented below:
                         
            Grant Date Fair Value  
    Number     Weighted     Range of  
    of Shares     Average     Prices  
 
                       
Unvested shares at December 31, 2008
    247,778     $ 31.31     $ 7-147  
Shares and units awarded in 2009
    9,493,347       0.90       1-7  
Shares and units vested in 2009
    (299,210 )     13.63       1-147  
Shares and units forfeited in 2009
    (125,751 )     0.91       1-133  
 
                     
 
                       
Unvested shares at December 31, 2009
    9,316,164     $ 1.28     $ 1-146  
Shares and units awarded in 2010
    891,047       9.47       7-11  
Shares and units vested in 2010
    (3,925,842 )     1.71       1-146  
Shares and units forfeited in 2010
    (96,743 )     1.46       1 - 9  
 
                     
 
                       
Unvested shares and units at December 31, 2010
    6,184,626     $ 2.19     $ 1-141  
Shares and units awarded in 2011
    784,750       9.32       7-10  
Shares and units vested in 2011
    (2,923,637 )     2.32       1-141  
Shares and units forfeited in 2011
    (63,207 )     2.38       1 - 9  
 
                     
 
                       
Unvested shares and units at December 31, 2011
    3,982,532     $ 3.53     $ 1-11  
 
                 
We recognize the fair value of the awards as the employee’s rights to the awards vest. In the first quarter of 2012, approximately 2.4 million of the RSUs will vest and the holders will receive approximately 1.5 million shares, net of tax withholdings. Employees are not restricted from selling shares received upon the vesting of their RSUs.
The following table presents additional information about restricted stock and restricted stock unit vesting:
                         
    For the years ended December 31,  
(in thousands)   2011     2010     2009  
Fair value of shares and units vested
  $ 27,933     $ 36,670     $ 739  
Tax benefits realized on shares and units vested
    10,475       13,753       277  
 
                 
Stock Compensation Costs
                         
    For the years ended December 31,  
(in thousands, except per share data)   2011     2010     2009  
 
                       
Share-based compensation:
                       
Stock options
  $ 262     $ 1,767     $ 3,886  
Restricted stock and RSUs
    8,120       9,150       5,062  
 
                 
 
                       
Total stock compensation
    8,382       10,917       8,948  
Included in discontinued operations
    —       —       (31 )
 
                 
Included in continuing operations
  $ 8,382     $ 10,917     $ 8,917  
 
                 
 
                       
Share-based compensation, net of tax
  $ 5,239     $ 6,823     $ 5,573  
 
                 
As of December 31, 2011, $6.2 million of total unrecognized compensation cost related to restricted stock, RSUs and performance shares is expected to be recognized over a weighted-average period of 1.6 years.