Share-Based Compensation

12 Months Ended

Dec. 31, 2013

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Share-Based Compensation

Note 17: Share-Based Compensation

Compensation cost charged against income, primarily SG&A expense, and the income tax benefit recognized for our share-based compensation arrangements is included below:

	Years Ended December 31,
	2013		2012		2011
	(In thousands)
Total share-based compensation cost	$	14,854	$	12,374	$	11,241
Income tax benefit		5,777		4,812		4,372

We currently have outstanding stock appreciation rights (SARs), stock options, restricted stock units with service vesting conditions, and restricted stock units with performance vesting conditions. We grant SARs and stock options with an exercise price equal to the closing market price of our common stock on the grant date. Generally, SARs and stock options may be converted into shares of our common stock in equal amounts on each of the first three anniversaries of the grant date and expire 10 years from the grant date. Certain awards provide for accelerated vesting in certain circumstances, including a change in control of the Company. Restricted stock units with service conditions generally vest 3-5 years from the grant date. Restricted stock units issued based on the attainment of the performance conditions generally vest 50% on the second anniversary of their grant date and 50% on the third anniversary.

We recognize compensation cost for all awards based on their fair values. The fair values for SARs and stock options are estimated on the grant date using the Black-Scholes-Merton option-pricing formula which incorporates the assumptions noted in the following table. Expected volatility is based on historical volatility, and expected term is based on historical exercise patterns of option holders. The fair value of restricted stock units is the closing market price of our common stock on the date of grant. Compensation costs for awards with service conditions are amortized to expense using the straight-line method. Compensation costs for awards with performance conditions are amortized to expense using the graded attribution method.

	Years Ended December 31,
	2013			2012			2011
	(In thousands, except weighted average
	fair value and assumptions)
Weighted-average fair value of SARs and options granted	$	24.63		$	19.53		$	17.64
Total intrinsic value of SARs converted and options exercised		47,058			8,898			6,183
Cash received for options exercised		14,030			2,372			4,599
Tax benefit related to share-based compensation		10,734			4,119			1,790
Weighted-average fair value of restricted stock shares and units granted		50.38			35.85			35.91
Total fair value of restricted stock shares and units vested		9,032			9,017			4,370
Expected volatility		53.94	%		54.26	%		52.00	%
Expected term (in years)		6.1			6.1			6.1
Risk-free rate		1.04	%		1.11	%		2.49	%
Dividend yield		0.40	%		0.50	%		0.56	%

	SARs and Stock Options									Restricted Shares and Units
						Weighted-
				Weighted-		Average							Weighted-
				Average		Remaining		Aggregate					Average
				Exercise		Contractual		Intrinsic					Grant-Date
	Number			Price		Term		Value		Number			Fair Value
	(In thousands, except exercise prices, fair values, and contractual terms)
Outstanding at January 1, 2013		3,139		$	30.40						386		$	26.67
Granted		342			50.02						275			50.38
Exercised or converted		(1,705	)		27.77						(176	)		24.12
Forfeited or expired		(108	)		42.01						(43	)		38.19
Outstanding at December 31, 2013		1,668		$	36.37		7.2	$	56,827		442		$	41.32
Vested or expected to vest at December 31, 2013		1,631		$	36.22		7.1	$	55,833
Exercisable or convertible at December 31, 2013		891			30.48		6.1		35,599

At December 31, 2013, the total unrecognized compensation cost related to all nonvested awards was $18.5 million. That cost is expected to be recognized over a weighted-average period of 1.8 years.

Historically, we have issued treasury shares, if available, to satisfy award conversions and exercises.