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Stockholders' Equity
 12 Months Ended
Dec. 31, 2011
Stockholders' Equity [Abstract]  
Stockholders' Equity

Note 5. Stockholders' Equity

Our authorized and issued shares (stated in whole numbers) at December 31 consist of the following:

 

     Par Value      2011      2010  

Preferred Stock

    $ .01/share         

Authorized

         5,000,000         5,000,000   

Shares issued

         0         0   

Common Stock

    $ .01/share         

Authorized

         400,000,000         400,000,000   

Shares issued

         295,258,674         294,861,424   

Dividends

On January 17, 2012, our board of directors declared a quarterly dividend of $0.17 per share of common stock to be paid in cash on February 29, 2012 to shareholders of record at the close of business on February 1, 2012. We paid aggregate annual dividends per share of $0.65, $0.62, and $0.36 in 2011, 2010, and 2009, respectively.

Stock Options

The following tables summarize the details of grants made under our stock option plan, that could be still outstanding, and the assumptions used to value these grants. All options granted were effective at the close of business on the date of grant.

 

      Shares
granted		      Option exercise
(strike) price		      Closing stock
price on date
of grant		      December 31, 2011  

Date of grant

             Options
outstanding		      Options
vested		  

April 19, 2011

      410,000       $  35.00       $  31.78         410,000         0   

April 20, 2010

      530,000       $ 30.00       $ 27.13         400,000         0   

April 21, 2009

      790,000       $ 27.00       $ 17.61         600,000         0   

April 15, 2008

      550,000       $ 27.00       $ 24.35         350,000         0   

April 17, 2007

      4,380,000       $ 22.50       $ 20.15         3,372,750         1,852,750   

 

Date of grant

    Risk-free
interest rate		     Expected life
of option in
years		      Expected
dividend
yield		     Expected
stock
volatility		     Estimated fair
value of stock
option		  

April 19, 2011

      2.1  %      5.00         1.6  %      39.33  %    $ 11.20   

April 20, 2010

      2.6  %      5.00         1.5  %      39.10  %    $ 8.14   

April 21, 2009

      1.9  %      5.00         1.0  %      38.80  %    $ 3.64   

April 15, 2008

      2.7  %      5.00         1.0  %      30.93  %    $ 7.75   

April 17, 2007

      4.6  %      4.85         1.0  %      31.59  %    $ 5.63   

All of the options in the tables above vest and become exercisable over a period of up to eight years. Each option will terminate, to the extent not previously exercised, 13 months after the end of the relevant vesting period.

The fair value of each share-based option was estimated on the date of grant using a Black-Scholes valuation method that uses the assumptions listed above. The expected life is the average length of time over which we expect the employee groups will exercise their options, which is based on historical experience with similar grants. Expected volatilities are based on the movement of our stock over the most recent historical period equivalent to the expected life of the option. The risk-free interest rate is based on the U.S. Treasury rate over the expected life at the time of grant. The dividend yield is estimated over the expected life based on our current dividend payout, historical dividends paid, and expected future cash dividends.

A summary of the activity under our stock option plan is as follows:

 

      Options
outstanding		     Exercise
Price1		      Remaining
Life2		  

Outstanding as of January 1, 2011

      5,320,000      $ 24.03         5.50   

Granted

      410,000      $ 35.00         7.93   

Exercised/earned

      (397,250  )    $ 22.50      

Cancelled/forfeited

      (200,000  )    $ 26.78      
  

 

 

    

 

 

     

 

 

  

Outstanding as of December 31, 2011

      5,132,750      $ 24.92         4.72   
  

 

 

    

 

 

     

 

 

  

Exercisable as of December 31, 2011

      1,852,750      $ 22.50         3.16   
  

 

 

    

 

 

     

 

 

  

 

      Options
outstanding		     Exercise
Price1		      Remaining
Life2		  

Outstanding as of January 1, 2010

      5,120,000      $ 23.54         6.28   

Granted

      530,000      $ 30.00         8.41   

Exercised/earned

      0        0      

Cancelled/forfeited

      (330,000  )    $ 26.00      
  

 

 

    

 

 

     

 

 

  

Outstanding as of December 31, 2010

      5,320,000      $ 24.03         5.50   
  

 

 

    

 

 

     

 

 

  

Exercisable as of December 31, 2010

      638,000      $ 22.50         2.57   
  

 

 

    

 

 

     

 

 

  

 

1

Weighted-average exercise price

 

2

Weighted-average remaining contractual life in years

The total intrinsic value of stock options exercised during the years ended December 31, 2011, 2010, and 2009 was $4,977, $0, and $0, respectively.

 

A summary of the status of the nonvested shares under our stock option plan is as follows:

 

Nonvested shares

    Shares     Weighted
average grant-
date fair value		  

Outstanding as of January 1, 2011

      4,682,000      $ 5.85   

Granted

      410,000        11.20   

Vested

      (1,612,000  )      5.69   

Forfeited

      (200,000 )      6.77   
  

 

 

    

 

 

  

Outstanding as of December 31, 2011

      3,280,000      $ 6.54   
  

 

 

    

 

 

  

 

Nonvested shares

    Shares     Weighted
average grant-
date fair value		  

Outstanding as of January 1, 2010

      4,700,000      $ 5.55   

Granted

      530,000        8.14   

Vested

      (218,000  )      5.16   

Forfeited

      (330,000  )      5.77   
  

 

 

    

 

 

  

Outstanding as of December 31, 2010

      4,682,000      $ 5.85   
  

 

 

    

 

 

  

At December 31, 2011, there was $15,145 of total unrecognized compensation cost related to unvested stock options granted under the plan. The cost is expected to be recognized over a weighted average period of 4.70 years. The total fair value of shares vested under our stock option plan during 2011, 2010, and 2009 was $9,168, $1,125, and $2,080, respectively.

Total stock-based compensation expense related to our stock option plan was $4,050, $4,030, and $3,850 for 2011, 2010, and 2009, respectively.

Earnings Per Share

The following tables present a reconciliation of the denominators used in the computation of basic and diluted earnings per share and a summary of the options to purchase shares of common stock which were excluded from the diluted earnings calculation because they were anti-dilutive:

 

Reconciliation

    2011      2010      2009  

Basic-weighted average shares outstanding

      295,053,790         294,861,424         296,715,970   

Weighted shares assumed upon exercise of stock options

      814,936         0         0   
  

 

 

     

 

 

     

 

 

  

Diluted-weighted average shares outstanding

      295,868,726         294,861,424         296,715,970   
  

 

 

     

 

 

     

 

 

  

 

000,000,000 000,000,000 000,000,000

Summary of anti-dilutive options excluded

    2011      2010      2009  

Options to purchase shares of common stock

      704,384         5,328,246         5,255,120   

Weighted-average exercise prices of options

    $ 32.05         23.94         23.57   

Any dilutive impact summarized above would relate to periods when the average market price of our stock exceeded the exercise price of the potentially dilutive option securities then outstanding.