XML 36 R10.htm IDEA: XBRL DOCUMENT v2.4.0.8
Stock-Based Compensation
 6 Months Ended
Jun. 30, 2014
Stock-Based Compensation [Abstract]  
Stock-Based Compensation

5. Stock-based Compensation

During the first quarter of 2014, the Company granted stock only stock appreciation rights (“SOSARs”) on 757 shares of its common stock to eligible employees, of which 220 include performance conditions. The weighted average grant date fair value of the SOSARs was $135.98 per share with a weighted average exercise price of $544.98 per share based on the closing price of common stock on the date of grant. The SOSARs (other than those subject to performance conditions) vest in two equal installments on the second and third anniversary of the grant date.

 

Total stock-based compensation expense was $34,340 and $61,997 ($21,147 and $38,178 net of tax) for the three and six months ended June 30, 2014,  respectively, and was $19,243 and $34,898 ($11,704 and $21,225 net of tax) for the three and six months ended June 30, 2013, respectively.  During the second quarter of 2014, of the Company increased its estimate of the number non-vested stock awards subject to performance conditions that it expects will vest, which resulted in a cumulative adjustment to expense of $1,616 ($995 net of tax and $0.03 to basic and diluted earnings per share). A portion of stock-based compensation totaling $298 and $596 for the three and six months ended June 30, 2014, respectively, and $297 and $565 for the three and six months ended June 30, 2013, respectively, was recognized as capitalized development and is included in leasehold improvements, property and equipment in the consolidated balance sheet.  During the six months ended June 30, 2014,  200 SOSARs were exercised, 26 SOSARs were forfeited, and 2 non-vested stock awards vested.