CAPITAL STOCK

At December 31, 2013, there were 300,000,000 shares of common stock and 30,000,000 shares of serial preferred stock authorized for issuance. Of the authorized serial preferred stock, 3,000,000 shares are designated as cumulative redeemable serial preferred and 1,000,000 shares are designated as convertible serial preferred stock. See Note 11. Under the amended and restated 2006 Equity and Performance Incentive Plan (2006 Employee Plan), 19,200,000 common shares may be issued or transferred. See Note 12. An aggregate of 12,121,210, 13,558,565 and 18,013,429 shares of common stock at December 31, 2013, 2012 and 2011, respectively, were reserved for future grants of restricted stock and the exercise and future grants of option rights. See Note 12. Common shares outstanding shown in the following table included 486,138, 484,872 and 475,628 shares of common stock held in a revocable trust at December 31, 2013, 2012 and 2011, respectively. The revocable trust is used to accumulate assets for the purpose of funding the ultimate obligation of certain non-qualified benefit plans. Transactions between the Company and the trust are accounted for in accordance with the Deferred Compensation – Rabbi Trusts Subtopic of the Compensation Topic of the ASC, which requires the assets held by the trust be consolidated with the Company’s accounts. Effective March 31, 2011, the company retired 125,425,977 common shares held in treasury, which resulted in decreases in Treasury stock, common stock and retained earnings.



	Common Shares in Treasury		Common Shares Outstanding
Balance at January 1, 2011	124,324,862		107,020,728
Shares tendered as payment for option rights exercised	2,274		(2,274	)
Shares issued for exercise of option rights			1,480,058
Net shares issued for grants of restricted stock			55,722
Treasury stock purchased	4,700,000		(4,700,000	)
Treasury stock retired	(125,425,977	)
Balance at December 31, 2011	3,601,159		103,854,234
Shares tendered as payment for option rights exercised	7,766		(7,766	)
Shares issued for exercise of option rights			4,140,822
Shares tendered in connection with grants of restricted stock	143,979		(143,979	)
Net shares issued for grants of restricted stock			26,756
Treasury stock purchased	4,600,000		(4,600,000	)
Balance at December 31, 2012	8,352,904		103,270,067
Shares tendered as payment for option rights exercised	2,697		(2,697	)
Shares issued for exercise of option rights			1,127,942
Shares tendered in connection with grants of restricted stock	116,897		(116,897	)
Net shares issued for grants of restricted stock			150,965
Treasury stock purchased	4,300,000		(4,300,000	)
Balance at December 31, 2013	12,772,498		100,129,380