XML 63 R10.htm IDEA: XBRL DOCUMENT v2.4.0.6
Stock-Based Compensation
 3 Months Ended
Mar. 31, 2013
Stock-Based Compensation

5. Stock-Based Compensation

In October 1999, the Company adopted a long-term equity incentive plan, which allows for grants of stock options, stock appreciation rights, restricted stock and performance awards to directors, officers and employees of PCA, as well as others who engage in services for PCA. Restricted stock awards granted to officers and employees generally vest at the end of a four-year period, and restricted stock awards granted to directors vest immediately. The Company has not granted any option awards since 2007. The plan, which was scheduled to terminate on October 19, 2014, was amended effective with the approval by the Company’s stockholders on May 1, 2013. The amendment extended the plan’s term by ten years to May 1, 2023 and increased the number of shares that may be granted under the plan by 2,000,000 shares, to a total issuance of up to 10,550,000 shares of common stock over the life of the plan (including prior awards). As of March 31, 2013, options and restricted stock for 8,024,928 shares have been granted, net of forfeitures. Forfeitures are added back to the pool of shares of common stock available to be granted at a future date.

A summary of the Company’s restricted stock activity follows:

 

     2013     2012  
     Shares     Fair Market
Value at
Date of
Grant		     Shares     Fair Market
Value at
Date of
Grant		  

(Dollars in thousands)

         

Restricted stock at January 1

      1,771,664      $ 41,522        1,817,745      $ 40,655   

Vested

      (111,646 )      (2,957 )      (70,206 )      (2,007 ) 

Cancellations

      (16,030 )      (365 )      (2,940 )      (60 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Restricted stock at March 31

      1,643,988      $ 38,200        1,744,599      $ 38,588   
  

 

 

    

 

 

    

 

 

    

 

 

  

No restricted stock was granted during the three-month periods ended March 31, 2013 and 2012.

Compensation expense for restricted stock recognized in the condensed consolidated statements of income for the three-month periods ended March 31, 2013 and 2012 was as follows:

 

     Three Months Ended
March 31,		  
     2013     2012  

(In thousands)

     

Impact on income before income taxes

    $ (3,637 )    $ (2,594 ) 

Income tax benefit

      1,413        1,009   
  

 

 

    

 

 

  

Impact on net income

    $ (2,224 )    $ (1,585 ) 
  

 

 

    

 

 

  

The fair value of restricted stock is determined based on the closing price of the Company’s common stock on the grant date.

The Company generally recognizes compensation expense associated with restricted stock awards ratably over their vesting periods. As PCA’s Board of Directors has the ability to accelerate vesting of restricted stock upon an employee’s retirement, the Company accelerates the recognition of compensation expense for certain employees approaching normal retirement age. As of March 31, 2013, there was $18.0 million of total unrecognized compensation costs related to restricted stock awards. The Company expects to recognize the cost of these stock awards over a weighted-average period of 2.4 years. There is no unrecognized compensation cost related to stock option awards granted under the Company’s equity incentive plan as all outstanding awards have vested.