XML 81 R13.htm IDEA: XBRL DOCUMENT
v2.4.0.8

STOCK-BASED COMPENSATION | 9 Months Ended
--- | ---
Sep. 30, 2014
STOCK-BASED COMPENSATION |
STOCK-BASED COMPENSATION | NOTE 5 — STOCK-BASED COMPENSATION During the three and nine months ended September 30, 2014, total compensation expense recognized in the consolidated statements of income related to restricted stock awards reduced income before taxes by $3.6 million and $10.4 million, respectively, and net income by $2.1 million and $6.0 million, respectively. In comparison, during the three and nine months ended September 30, 2013, total compensation expense recognized in the consolidated statements of income related to both stock options and restricted stock awards reduced income before taxes by $3.4 million and $9.3 million, respectively, and net income by $2.0 million and $5.4 million, respectively. The Company received $323 thousand and $1.5 million during the nine months ended September 30, 2014 and 2013, respectively, in cash proceeds from stock option exercises. The net tax benefit recognized in equity for stock compensation plans was $3.9 million and $3.3 million for the nine months ended, September 30, 2014 and 2013, respectively. As of September 30, 2014, there are 3,711,498 shares available to be issued, subject to the Company’s 1998 Stock Incentive Plan, as amended. Stock Options The Company issues fixed stock options to certain employees, officers, and directors. Stock options are issued at the current market price on the date of grant with a three-year or four-year vesting period and contractual terms of 7 or 10 years. The Company issues new shares upon the exercise of stock options. A summary of activity for the Company’s stock options as of and for the nine months ended September 30, 2014 is presented below:
|  |  |  |  |  | Weighted |  |  |
|  |  |  | Weighted |  | Average |  | Aggregate |
|  |  |  | Average |  | Remaining |  | Intrinsic |
|  |  |  | Exercise |  | Contractual |  | Value |
|  | Shares |  | Price |  | Term |  | (In thousands) |
Outstanding at beginning of period |  | 406,731 |  | $ | 26.72 |  |  |  |  |
Granted |  | — |  | — |  |  |  |  |
Exercised |  | (15,312 | ) | 21.09 |  |  |  |  |
Expired |  | (130,514 | ) | 38.76 |  |  |  |  |
Outstanding at end of period |  | 260,905 |  | $ | 21.03 |  | 0.40 years |  | $ | 3,383 |
Vested or expected to vest at end of period |  | 260,905 |  | $ | 21.03 |  | 0.40 years |  | $ | 3,383 |
Exercisable at end of period |  | 260,905 |  | $ | 21.03 |  | 0.40 years |  | $ | 3,383 |
All outstanding stock options were vested prior to December 31, 2013. The fair value of each option granted is estimated on the date of grant using the Black-Scholes option-pricing model with the following assumptions: 1) the expected term (estimated period of time outstanding) of stock options granted is estimated using the historical exercise behavior of employees; 2) the expected volatility is based on historical volatility for a period equal to the stock option’s expected term; 3) the expected dividend yield is based on the Company’s prevailing dividend rate at the time of grant; and 4) the risk-free rate is based on the U.S. Treasury strips in effect at the time of grant equal to the stock option’s expected term. The Company did not issue any stock options during the nine months ended September 30, 2014 and 2013. The following table presents information related to stock options during the three and nine months ended September 30, 2014 and 2013:
|  | Three Months Ended |  | Nine Months Ended |
|  | September 30, |  | September 30, |
|  | 2014 |  | 2013 |  | 2014 |  | 2013 |
Weighted average grant date fair value of stock options granted during the period |  | N/A |  | N/A |  | N/A |  | N/A |
Total intrinsic value of options exercised (in thousands) |  | $ | 28 |  | $ | 388 |  | $ | 222 |  | $ | 812 |
Total fair value of options vested (in thousands) |  | N/A |  | N/A |  | N/A |  | $ | 363 |
As of March 31, 2013, all stock options were fully vested and all compensation cost related to stock options have been recognized. Restricted Stock Awards In addition to stock options, the Company also grants restricted stock awards to directors, officers and employees. The restricted stock awards fully vest after three to five years of continued employment from the date of grant. Some of the awards are also subject to achievement of certain established performance goals. The Company becomes entitled to an income tax deduction in an amount equal to the taxable income reported by the holders of the restricted stock when the restrictions are released and the shares are issued. Restricted stock awards are forfeited if officers and employees terminate prior to the lapsing of restrictions or if established performance goals are not achieved. The Company records forfeitures of issued restricted stock as treasury share repurchases. The following presents a summary of the activity for the Company’s time-based and performance-based restricted stock awards for the nine months ended and as of September 30, 2014:
|  | September 30, 2014 |
|  | Restricted Stock Awards |
|  | Time-Based |  | Performance-Based |
|  |  |  | Weighted |  |  |  | Weighted |
|  |  |  | Average |  |  |  | Average |
|  | Shares |  | Price |  | Shares |  | Price |
Outstanding at beginning of period |  | 438,508 |  | $ | 17.79 |  | 956,707 |  | $ | 23.74 |
Granted |  | 29,114 |  | 33.32 |  | 603,697 |  | 36.85 |
Vested |  | (170,199 | ) | 12.10 |  | (340,866 | ) | 23.52 |
Forfeited |  | (24,216 | ) | 20.28 |  | (45,820 | ) | 29.19 |
Outstanding at end of period |  | 273,207 |  | $ | 22.77 |  | 1,173,718 |  | $ | 30.33 |
Restricted stock awards are valued at the closing price of the Company’s stock on the date the award is granted. The weighted average fair values of time-based restricted stock awards granted during the nine months ended September 30, 2014 and 2013 were $33.32 and $26.61, respectively. The weighted average fair values of performance-based restricted stock awards granted during the nine months ended September 30, 2014 and 2013 were $36.85 and $25.25, respectively. The total fair value of time-based restricted stock awards vested for the three months ended September 30, 2014 and 2013 was $589 thousand and $1.6 million, respectively. The total fair value of time-based restricted stock awards vested for the nine months ended September 30, 2014 and 2013 was $5.9 million and $18.7 million, respectively. The total fair value of performance-based restricted stock awards vested during the three months ended September 30, 2014 and September 30, 2013 were both nominal. The total fair value of performance-based restricted stock awards vested during the nine months ended September 30, 2014 and 2013 was $12.6 million and $4.4 million, respectively. As of September 30, 2014, total unrecognized compensation cost related to time-based and performance-based restricted stock awards amounted to $2.5 million and $25.2 million, respectively. This cost is expected to be recognized over a weighted average period of 2.3 years and 2.1 years, respectively.

X
- Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsSharebasedPaymentsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6406099&loc=d3e25284-112666 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 40 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6418621&loc=d3e17540-113929 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5444-113901 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 14 + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration