Note 13 - Shareholders’ Equity

12 Months Ended

Dec. 31, 2011

Stockholders' Equity Note Disclosure [Text Block]

13. Shareholders’ Equity

Equity Plans: The company has equity-based compensation plans authorizing the granting of stock options, restricted shares, restricted share units, performance shares, and other stock rights of up to 5,925,000 shares of common stock to employees and directors.

Stock options granted prior to 2002 vested over a five-year period and are exercisable over a ten-year period commencing from the date of vesting. The stock options granted in 2002 through February 2005, vested over a five-year period and are exercisable over a ten-year period commencing from the date of the grant. Stock options granted after February 2005 vest over a three, four or five-year period and are exercisable over either a seven or ten-year period commencing from the date of the grant. Restricted shares and share units granted by the company vest over three to four years.

The company also has performance share agreements under its equity-based compensation plans pursuant to which a target amount of performance share awards have been granted based on the company attaining certain financial performance goals relating to return on net tangible assets (for performance shares granted prior to 2008) or return on net assets (for performance shares granted in 2008) and earnings before interest, taxes, depreciation and amortization over a three-year performance period. The performance-based restricted stock awards granted prior to 2008 vest in thirds over a three-year period (following the three-year performance period). When vested, half of the stock awards are paid in cash and half will be settled through the issuance of the company’s common stock. The performance-based restricted stock awards granted in 2008 vest after a three-year performance period and are satisfied completely by the issuance of the company’s common stock at the end of the performance period. The fair value of the performance-based restricted stock awards that are settled in common stock is measured at the market price on the grant date, and the fair value of the portion paid in cash is measured at the current market price of a share.

The following table provides a reconciliation of outstanding stock options for the fiscal year ended December 31, 2011.

	Shares Under Option			Weighted Average Price		Weighted Average Remaining Contract Life (Years)		Aggregate Intrinsic Value (000’s)
Outstanding January 1, 2011		1,562,800		$	30.63
Granted		103,578			61.64
Exercised		(572,611	)		28.73
Forfeited		(29,516	)		39.59
Outstanding December 31, 2011		1,064,251			34.42		3.5	$	10,913
Exercisable December 31, 2011		720,374			33.79		2.8		6,618

The following table provides a reconciliation of nonvested restricted share and share unit awards for the 12 month period ending December 31, 2011.

	Shares			Weighted Average Grant-Date Fair Value
Nonvested January 1, 2011		208,842		$	28.36
Granted		73,067			60.32
Vested		(80,021	)		28.09
Forfeited		(10,721	)		46.69
Nonvested December 31, 2011		191,167			39.66

The total intrinsic value of options exercised during 2011, 2010 and 2009 was $15.6 million, $7.6 million, and $0.2 million, respectively.

The company recognizes compensation cost of all share-based awards as an expense on a straight-line basis over the vesting period of the awards. At December 31, 2011, the unrecognized compensation cost for options, restricted shares and performance shares was $7.6 million before tax, and will be recognized over a weighted-average period of 1.8 years. Compensation cost included as a component of selling, general and administrative expense for all equity compensation plans discussed above was $5.8 million, $5.2 million and $5.5 million for 2011, 2010 and 2009, respectively. The total income tax benefit recognized in the Consolidated Statements of Income was $2.1 million, $1.9 million and $2.1 million for 2011, 2010 and 2009, respectively.

The company uses the Black-Scholes option valuation model to determine the fair value of awards granted. The weighted average fair value of and related assumptions for options granted are as follows:

	2011			2010			2009
Weighted average fair value of options granted	$	24.25		$	17.40		$	5.72
Assumptions:
Risk-free interest rate		2.07	%		2.25	%		2.19	%
Expected dividend yield		0.97	%		0	%		0	%
Expected stock price volatility		46.0	%		47.0	%		43.5	%
Expected life of options	5.1 years			4.5 years			4.7 years

Expected volatilities are based on the historical volatility of the company’s stock price. The expected life of options is based on historical data for options granted by the company and the SEC simplified method. The risk-free rates are based on yields available at the time of grant on U.S. Treasury bonds with maturities consistent with the expected life assumption.

Accumulated Other Comprehensive Income (Loss): The components of accumulated other comprehensive income (loss) at the end of the fiscal years 2011, 2010 and 2009 are as follows (in thousands):

	2011			2010			2009
Minimum pension liability adjustment*	$	(13,578	)	$	(6,875	)	$	(3,831	)
Gain (loss) on investments**		6,642			9,344			8,648
Gain (loss) on derivative instruments***		—			—			(92	)
Foreign currency translation adjustment		15,567			18,772			14,002
Total	$	8,631		$	21,241		$	18,727

* Net of tax of $7,186, $3,718 and $1,768 for 2011, 2010 and 2009, respectively.

** Net of tax of $0, $0 and $0 for 2011, 2010 and 2009, respectively.

*** Net of tax of $191 for 2009.

Preferred Stock: The Board of Directors may authorize the issuance of preferred stock from time to time in one or more series with such designations, preferences, qualifications, limitations, restrictions, and optional or other special rights as the Board may fix by resolution.

The Board of Directors authorized the repurchase of up to 1,000,000 shares of the company’s common stock under a program for the period May 1, 2011 to April 30, 2012, of which 859,029 shares were purchased, at an average price of $43.18, through December 31, 2011, and 140,971 shares remain available for purchase under the initial program as of December 31, 2011.

On October 28, 2011, the Board of Directors increased the share repurchase authorization from 1,000,000 shares to 1,500,000 shares. This provides authority to purchase up to 640,971 additional shares between October 28, 2011 and the April 30, 2012 expiration date.