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Stock-Based Compensation
 9 Months Ended
Sep. 30, 2014
Stock-Based Compensation [Abstract]  
Stock-Based Compensation

5. Stock-based Compensation

During the nine months ended September 30 2014, the Company granted stock only stock appreciation rights (“SOSARs”) on 763 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 $136.12 per share with a weighted average exercise price of $545.45 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. During the nine months ended September 30, 2014,  229 SOSARs were exercised, 37 SOSARs were forfeited, and 2 non-vested stock awards vested.

 

Total stock-based compensation expense was $21,024 and $83,021 ($12,944 and $51,116 net of tax) for the three and nine months ended September 30, 2014,  respectively, and was $16,567 and $51,465 ($10,069 and $31,280 net of tax) for the three and nine months ended September 30, 2013, respectively.  During the second quarter of 2014, 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 $269 and $865 for the three and nine months ended September 30, 2014, respectively, and $278 and $843 for the three and nine months ended September 30, 2013, respectively, was recognized as capitalized development and is included in leasehold improvements, property and equipment in the consolidated balance sheet.