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<!-- Begin Block Tagged Note 15 - us-gaap:DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Note 15 — Share-Based Compensation</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Under the 2007 Incentive Compensation Plan (the “2007 Plan”), the Company may grant stock options,
stock appreciation rights, restricted stock awards and phantom stock and restricted stock unit
awards to selected employees and non-employee directors. The 2007 Plan also provides specifically
for the issuance of common stock to non-employee directors as all or part of their annual
compensation for serving as directors, as may be determined by the board of directors. The
Unaudited Condensed Statements of Consolidated Operations include share-based compensation expense
for option grants, restricted stock awards and restricted stock unit awards granted to employees as
a component of Selling, general and administrative expenses in the amount of $1.4 million and $4.2
million for the three and nine months ended September 30, 2010, respectively, and $1.3 million and
$4.4 million for the three and nine months ended September 30, 2009, respectively. At September
30, 2010, there was $6.9 million of total unrecognized compensation expense related to nonvested
share-based awards. That cost is expected to be recognized as follows: $1.2 million in the
remaining three months of 2010, $3.4 million in 2011, $2.2 million in 2012 and $0.1 million in
2013. Unearned compensation expense is recognized over the vesting period for the particular
grant. Total unrecognized compensation cost will be adjusted for future changes in actual and
estimated forfeitures and fluctuations in the fair value of restricted stock unit awards.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Non-employee directors of the Company currently are paid a portion of their annual retainer in
unrestricted shares of common stock. For purposes of determining the number of shares of common
stock to be issued, shares are valued at the average of the high and low sale price of the
Company’s common stock on the NYSE on the last trading day of the quarter. The Company issued 2,518
and 6,598 shares to non-employee directors during the three and nine months ended September 30,
2010, respectively and 2,352 and 9,066 shares to non-employee directors during the three and nine
months ended September 30, 2009, respectively.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Stock Options</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Options granted generally vest in equal increments over a three-year period from the grant date.
Upon any change in control of the Company, as defined in the applicable plan, or upon death,
disability or retirement, the stock options become 100% vested and exercisable. The Company
accounts for options that vest over more than one year as one award and recognizes expense related
to those awards on a straight-line basis over the vesting period. The Company granted stock options
to purchase 238,050 and 188,003 shares of common stock during the nine months ended September 30,
2010 and 2009, respectively. Included in the 2009 grants are stock options to purchase 7,703
shares of common stock with a vesting period of one year, which were granted to the Company’s chief
executive officer in connection with payment of his 2008 high-performance bonus.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The fair value of options granted during the nine months ended September 30, 2010 and 2009 was
estimated at the date of grant using a Black-Scholes options pricing model with the following
weighted-average assumptions:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">2009</td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Risk-free interest rate
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right"><b>2.7</b></td>
<td nowrap="nowrap"><b>%</b></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">2.1</td>
<td nowrap="nowrap">%</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Dividend yield
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Volatility factor of Company common stock
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>0.58</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">0.59</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Weighted-average expected option life (years)
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>6.0</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">6.0</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Weighted-average grant-date fair value
</div></td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>17.23</b></td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">11.23</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The risk-free interest rate assumption is based upon the U.S. Treasury yield curve appropriate for
the term of the options being valued. The dividend yield assumption is zero, as the Company intends
to continue to retain earnings for use in the operations of the business and does not anticipate
paying dividends in the foreseeable future. Expected volatilities are based on historical
volatility of the Company’s common stock. The expected term of options granted is determined using
the simplified method allowed by Staff Accounting Bulletin (“SAB”) No. 110 as historical data was
not sufficient to provide a reasonable estimate. Under this approach, the expected term is presumed
to be the mid-point between the vesting date and the end of the contractual term.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">The following table sets forth the number of shares and weighted-average grant-date fair value:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Weighted</td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Average Fair</td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Value at Grant</td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000">Shares</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000">Date</td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Non-vested at January 1, 2010
</div></td>
<td> </td>
<td> </td>
<td align="right">337,812</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">18.96</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Granted during the first nine months of 2010</b>
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>238,050</b></td>
<td> </td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>17.23</b></td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Vested during the first nine months of 2010</b>
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right"><b>(171,544</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>21.10</b></td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Forfeited during the first nine months of 2010</b>
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right"><b>(11,404</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>16.04</b></td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Non-vested at September 30, 2010</b>
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>392,914</b></td>
<td> </td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>17.06</b></td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Non-vested at January 1, 2009
</div></td>
<td> </td>
<td> </td>
<td align="right">307,289</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">26.10</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Granted during the first nine months of 2009
</div></td>
<td> </td>
<td> </td>
<td align="right">188,003</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">11.23</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Vested during the first nine months of 2009
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(135,446</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="right">$</td>
<td align="right">24.45</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Forfeited during the first nine months of 2009
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(14,867</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="right">$</td>
<td align="right">16.18</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Non-vested at September 30, 2009
</div></td>
<td> </td>
<td> </td>
<td align="right">344,979</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">18.93</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Company received cash payments of $3.8 million during the nine months ended September 30, 2010
in connection with the exercise of stock options. The Company may use authorized and unissued or
treasury shares to satisfy stock option exercises and restricted stock awards. The Company does
not settle stock options for cash. The total intrinsic value of options exercised was $2.1 million
during the nine months ended September 30, 2010. The intrinsic value of an option represents the
amount by which the market value of the stock exceeds the exercise price of the option. There were
no options exercised in the nine months ended September 30, 2009.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">A summary of the Company’s stock option activity for the nine months ended September 30, 2010 is as
follows:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Weighted</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Weighted</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Average</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Average</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Remaining</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Aggregate</td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Exercise</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Contractual</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Intrinsic</td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 0px solid #000000">(Aggregate intrinsic value in thousands)</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000">Shares</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000">Price</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000">Term (Years)</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000">Value</td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Outstanding at January 1, 2010
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>1,035,942</b></td>
<td> </td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>35.37</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Granted
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>238,050</b></td>
<td> </td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>30.67</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Exercised
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right"><b>(168,787</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>22.52</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Expired unexercised
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right"><b>(6,932</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>53.75</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Forfeited
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right"><b>(11,404</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>29.49</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Outstanding at September 30, 2010
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>1,086,869</b></td>
<td> </td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>36.28</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>6.78</b></td>
<td> </td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>2,289</b></td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Vested or expected to vest at September 30, 2010
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>1,065,564</b></td>
<td> </td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>36.30</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>6.74</b></td>
<td> </td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>2,243</b></td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Exercisable at September 30, 2010
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>693,955</b></td>
<td> </td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>38.96</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>5.62</b></td>
<td> </td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>1,210</b></td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Restricted Stock — Performance-Based Awards</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">During the first nine months of 2010 and 2009, the Company awarded 121,700 and 87,250 shares,
respectively, of performance-based restricted stock that vest subject to the Company’s financial
performance. The number of shares of restricted stock that ultimately vest is based upon the
Company’s achievement of specific measurable performance criteria. A recipient of performance-based
restricted stock may earn a total award ranging from 0% to 100% of the initial grant, with target
being 50% of the initial grant. The shares awarded during 2010 will vest upon the satisfaction of
established performance criteria based on consolidated EBITDA Margin (defined as operating profit
plus depreciation and amortization expense divided by revenue) measured against a predetermined
peer group, and average return on net assets, in each case over a three-year performance period
ending December 31, 2012. The shares awarded during 2009 will vest upon the satisfaction of the
same performance criteria, measured in each case over a three-year
performance period ending December 31, 2011. In addition, 60,200 shares were awarded during 2008
and will vest upon the satisfaction of established performance criteria based on consolidated
operating profit and average return on net assets, measured in each case over a three-year
performance period ending December 31, 2010.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The performance period for 86,854 shares awarded during 2007 ended on December 31, 2009. A total of
80,600 of the shares awarded during 2007 were subject to vesting based upon the level of
satisfaction of established performance criteria based on the Company’s consolidated operating
profit and average return on net assets, in each case over the three-year performance period ended
December 31, 2009. Based upon the level of satisfaction of the performance objectives as determined
by the Compensation Committee in March 2010, 74,676 performance-based shares vested and were issued
in the first quarter of 2010. Upon vesting, employees surrendered 26,651 shares of common stock to
the Company to pay required minimum withholding taxes applicable to the vesting of restricted
stock. The surrendered shares are held by the Company as treasury stock. The remaining 6,254 shares
issued in 2007 did not vest as the Company did not meet an established earnings target during any
one of the years in the three-year performance period ended December 31, 2009.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The value of the performance-based restricted stock awards was based upon the market price of an
unrestricted share of the Company’s common stock at the date of grant. The Company recognizes
expense related to performance-based restricted stock ratably over the requisite performance period
based upon the number of shares that are anticipated to vest. The number of shares anticipated to
vest is evaluated quarterly and compensation expense is adjusted accordingly. Upon any change in
control of the Company, as defined in the applicable plan, or upon retirement, the shares become
100% vested at the target level. In the event of death or disability, a pro rata number of shares
remain eligible for vesting at the end of the performance period.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">A summary of the Company’s performance-based restricted stock awards for the nine months ended
September, 2010 is as follows:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Weighted</td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Average</td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Grant Date</td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000">Shares</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000">Fair Value</td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Non-vested at January 1, 2010
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>221,579</b></td>
<td> </td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>37.52</b></td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Granted
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>121,700</b></td>
<td> </td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>30.67</b></td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Vested
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right"><b>(74,676</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>41.43</b></td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Forfeited
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right"><b>(14,628</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>40.81</b></td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Non-vested at September 30, 2010
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>253,975</b></td>
<td> </td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>32.90</b></td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Expected to vest at September 30, 2010
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>27,185</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Restricted Stock Units — Performance-Based Awards</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">During the nine months ended September 30, 2010 and 2009, the Company awarded 19,850 and 22,480
performance-based restricted stock units, respectively, to employees outside the U.S. that vest
subject to the Company’s financial performance for three-year performance periods ending on
December 31, 2012 and December 31, 2011, respectively. These awards will be settled in cash based
on the value of the Company’s common stock at the vesting date. Since the awards will be settled
in cash, they are recorded as a liability award in accordance with the “Stock Compensation” topic
of the ASC. Accordingly, the Company records these awards as a component of Other non-current
liabilities on the Unaudited Condensed Consolidated Balance Sheets. The fair value of the award,
which determines the measurement of the liability on the balance sheet, is remeasured at each
reporting period until the award is settled. Fluctuations in the fair value of the liability awards
are recorded as increases or decreases to compensation expense. Over the life of these awards, the
cumulative amount of compensation expense recognized will match the actual cash paid. The number of
restricted stock units that ultimately vest is based upon the Company’s achievement of the same
performance criteria as the 2010 and 2009 performance-based restricted stock awards described
above.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Company recognizes expense related to performance-based restricted stock units ratably over the
requisite performance period based upon the number of units that are anticipated to vest. The
number of units anticipated to vest is evaluated quarterly and compensation expense is adjusted
accordingly. Upon any change in control of the Company, as defined in the applicable plan, or upon
retirement, the units become 100% vested at the target level. In the event of death or disability,
a pro rata number of units remain eligible for vesting at the end of the performance period.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">A summary of the Company’s performance-based restricted stock unit awards for the nine months ended
September 30, 2010 is as follows:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="88%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000">Units</td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Non-vested at January 1, 2010
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>19,380</b></td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Granted
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>19,850</b></td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Accelerated vesting due to retirement
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right"><b>(350</b></td>
<td nowrap="nowrap"><b>)</b></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Forfeited
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right"><b>(350</b></td>
<td nowrap="nowrap"><b>)</b></td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Non-vested at September 30, 2010
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>38,530</b></td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Expected to vest at September 30, 2010
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>4,219</b></td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Restricted Stock — Time-Based Awards</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">During the nine months ended September 30, 2010 and 2009, the Company awarded 63,100 and 24,850
shares of time-based restricted stock, respectively, that vest three years from the date of grant,
subject to the respective recipient remaining employed by the Company on that date. In addition,
during the nine months ended September 30, 2009, the Company awarded 4,127 shares of time-based
restricted stock with a vesting period of one year to its chief executive officer in connection
with payment of his 2008 high-performance bonus. The value of the restricted stock awards, based
upon the market price of an unrestricted share of the Company’s common stock at the respective
dates of grant, was $1.9 million for the 2010 awards and $0.6 million for the 2009 awards.
Compensation expense is being recognized ratably over the vesting period. Upon any change in
control of the Company, as defined in the applicable plan, or upon retirement, the shares become
100% vested. A pro rata number of shares will vest in the event of death or disability prior to the
stated vesting date.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">A total of 22,760 shares of time-based restricted stock awarded during 2007 vested during the nine
months ended September 30, 2010. Upon vesting, employees surrendered 7,923 shares of common stock
to the Company to pay required minimum withholding taxes applicable to the vesting of restricted
stock. The surrendered shares are held by the Company as treasury stock. The 4,127 shares granted
during 2009 to the Company’s chief executive officer, as discussed above, vested during the nine
months ended September 30, 2010. Upon vesting, the Company’s chief executive officer surrendered
1,310 shares of common stock to the Company to pay required minimum withholding taxes applicable to
the vesting of restricted stock.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">A summary of the Company’s time-based restricted stock awards for the nine months ended September
30, 2010 is as follows:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Weighted</td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Average</td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">Grant Date</td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000">Shares</td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000">Fair Value</td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Nonvested at January 1, 2010
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>65,662</b></td>
<td> </td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>40.25</b></td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Granted
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>63,100</b></td>
<td> </td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>30.67</b></td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Vested
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right"><b>(26,887</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>46.40</b></td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Forfeited
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right"><b>(2,850</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>33.34</b></td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Nonvested at September 30, 2010
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>99,025</b></td>
<td> </td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>32.67</b></td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Expected to vest at September 30, 2010
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>94,125</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Restricted Stock Units — Time-Based Awards</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">During the nine months ended September 30, 2010 and 2009, the Company awarded 10,550 and 4,400
time-based restricted stock units, respectively, to employees outside the U.S. These awards will
be settled in cash based on the value of the Company’s common stock at the vesting date. Since
the awards will be settled in cash, they are recorded as a liability award in accordance with the
“Stock Compensation” topic of the ASC. Accordingly, the Company records these awards as a component
of Other non-current liabilities on the Unaudited Condensed Consolidated Balance Sheets. The fair
value of the award, which determines the measurement of the liability on the balance sheet, is
remeasured at each reporting period until the award is settled. Fluctuations in the fair value of
the
liability awards are recorded as increases or decreases to compensation expense. Over the life of
these awards, the cumulative amount of compensation expense recognized will match the actual cash
paid. The restricted share units vest three years from the date of grant,
subject to the respective
recipient remaining employed by the Company on that date. Upon any change in control of the
Company, as defined in the applicable plan, or upon retirement, the units become 100% vested. A pro
rata number of units will vest in the event of death or disability prior to the stated vesting
date.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">A summary of the Company’s time-based restricted stock unit awards for the first nine months of
2010 is as follows:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="88%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000">Units</td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Nonvested at January 1, 2010
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>3,500</b></td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Granted
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>10,550</b></td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Accelerated vesting due to retirement
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right"><b>(200</b></td>
<td nowrap="nowrap"><b>)</b></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Forfeited
</div></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"><b>—</b></td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Nonvested at September 30, 2010
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>13,850</b></td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Expected to vest at September 30, 2010
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>12,245</b></td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
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<!-- Begin Block Tagged Notefalsefalsefalseus-types:textBlockItemTypetextblockDisclosure of compensation-related costs for share-based compensation which may include disclosure of policies, compensation plan details, allocation of stock compensation, incentive distributions, share-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 123R
-Paragraph 64, 65, A240
Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Statement of Position (SOP)
-Number 93-6
-Paragraph 53
Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 14
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