Stock-Based Compensation

12 Months Ended

Dec. 31, 2011

Stock-Based Compensation [Abstract]

Share-based compensation expense

Note 2.   Stock-Based Compensation

     The Company has a 2001 Stock Award and Incentive Plan (the "Plan"), which provides for grants of incentive and non-qualified stock options, restricted stock, stock appreciation rights, stock awards or performance unit awards. The Plan is administered by the Compensation Committee of the Board of Directors. Stock options granted under the Plan generally have a ten year term. The exercise price for stock options are at prices at or above the fair market value of the common stock on the date of the grant, and each award of stock options will vest ratably over a specified period, generally three years.

     Stock-based compensation expense is recognized in the consolidated financial statements for stock options based on the grant date fair value.

     Net income (loss) for years ended 2011, 2010 and 2009 include $2.7 million, $2.0 million and $2.2 million pretax compensation costs, respectively, related to stock option expense as a component of marketing and administrative expenses.  All stock option expense is recognized in the consolidated statements of operations. The related tax benefit included in the statement of operations on the non-qualified stock options is $1.1 million, $0.8 million and $0.9 million for 2011, 2010 and 2009, respectively.

      The benefits of tax deductions in excess of the tax benefit from compensation costs that were recognized or would have been recognized are classified as financing inflows on the consolidated statement of cash flows.

Stock Options

     The fair value of options granted is estimated on the date of grant using the Black-Scholes valuation model.  Compensation expense is recognized only for those options expected to vest, with forfeitures estimated at the date of grant based on the Company's historical experience and future expectations. The forfeiture rate assumption used for the period ended December 31, 2011 was approximately 6.87%.

     The weighted average grant date fair value for stock options granted during the years ended December 31, 2011, 2010 and 2009 was $22.06, $16.32 and $11.86, respectively. The weighted average grant date fair value for stock options vested during 2011, 2010 and 2009 was $15.17, $17.01 and $20.15, respectively.  The total intrinsic value of stock options exercised during the years ended December 31, 2011, 2010 and 2009 was $1.7 million, $0.5 million and $0.1 million, respectively.

      The fair value for stock awards was estimated at the date of grant using the Black-Scholes option valuation model with the following weighted average assumptions for the years ended December 31, 2011, 2010 and 2009:

	2011			2010			2009
Expected life (years)		6.3			6.3			6.3
Interest rate		2.46	%		2.92	%		1.87	%
Volatility		30.93	%		28.80	%		28.01	%
Expected dividend yield		0.31	%		0.41	%		0.50	%

     The expected term of the options represents the estimated period of time until exercise and is based on historical experience of similar awards, based upon contractual terms, vesting schedules, and expectations of future employee behavior.  The expected stock-price volatility is based upon the historical and implied volatility of the Company's stock.  The interest rate is based upon the implied yield on U.S. Treasury bills with an equivalent remaining term.  Estimated dividend yield is based upon historical dividends paid by the Company.

     The following table summarizes stock option activity for the year ended December 31, 2011:

	Shares			Weighted Average Exercise Price Per Share	Weighted Average Remaining Contractual Life (Years)		Aggregate Intrinsic      Value                 (in thousands)
Balance December 31, 2010	820,030		$	52.11
Granted	122,323			64.12
Exercised	(120,598	)		50.02
Canceled	(34,768	)		53.59
Balance December 31, 2011	786,987		$	54.19	5.71	$	10,087
Exercisable, December 31, 2011	559,670		$	54.16	4.63	$	2,639

     The aggregate intrinsic value above is calculated before applicable income taxes, based on the Company's closing stock price of $56.53 as of the last business day of the period ended December 31, 2011 had all options been exercised on that date. The weighted average intrinsic value of the options exercised during 2011, 2010 and 2009 was $14.30, $16.06 and $18.50 per share, respectively.  As of December 31, 2011, total unrecognized stock-based compensation expense related to nonvested stock options was approximately $1.5 million, which is expected to be recognized over a weighted average period of approximately three years.

     The Company issues new shares of common stock upon the exercise of stock options.

     Non-vested stock option activity for the year ended December 31, 2011 is as follows:

	Shares			Weighted Average Exercise Price Per Share
Nonvested options outstanding at December 31, 2010	269,315		$	47.13
Options granted	122,323			64.12
Options vested	(133,864	)		48.76
Options forfeited .	(30,457	)		54.78
Nonvested options outstanding, December 31, 2011	227,317		$	54.29

     The following table summarizes additional information concerning options outstanding at December 31, 2011:

Options Outstanding									Options Exercisable
Range of  Exercise Prices					Number Outstanding at 12/31/11	Weighted Average Remaining Contractual Term (Years)	Weighted Average Exercise Price		Number Exercisable at 12/31/11	Weighted Average Exercise Price
$	38.620	-	$	49.505	302,241	6.4	$	44.69	183,199	$	44.24
$	50.785	-	$	59.330	158,162	2.8	$	54.09	154,402	$	54.09
$	60.195	-	$	69.315	326,584	6.5	$	63.04	222,069	$	62.38
$	38.620	-	$	69.315	786,987	5.2	$	54.19	559,670	$	54.15

Restricted Stock

     The Company has granted certain corporate officers rights to receive shares of the Company's common stock under the Company's 2001 Stock Award and Incentive Plan (the "Plan").  The rights will be deferred for a specified number of years of service, subject to restrictions on transfer and other conditions. Compensation expense for these shares is recognized over the vesting period. The Company granted 68,489 shares, 78,320 shares and 101,400 shares for the periods ended December 31, 2011, 2010 and 2009, respectively. The fair value was determined based on the market value of unrestricted shares. As of December 31, 2011, there was unrecognized stock-based compensation related to restricted stock of $2.7 million, which will be recognized over approximately the next three years. The compensation expense amortized with respect to all units was approximately $4.6 million, $3.8 million and $4.2 million for the periods ended December 31, 2011, 2010 and 2009, respectively. In addition, the Company recorded reversals of $0.1 million, $0.1 million and $0.6 million for periods ended December 31, 2011, 2010 and 2009, respectively, related to restricted stock forfeitures. Such costs and reversals are included in marketing and administrative expenses. There were 47,123 restricted stock shares that vested for the year ended December 31, 2011.

     The following table summarizes the restricted stock activity for the Plan:

	Shares			Weighted Average Grant Date Fair Value
Unvested balance at December 31, 2010	150,270		$	47.19
Granted	68,489		$	64.17
Vested	(47,123	)	$	63.98
Canceled	(45,624	)	$	60.44
Unvested balance at December 31, 2011	126,012		$	54.42