XML 61 R17.htm IDEA: XBRL DOCUMENT
v2.4.0.6

Share-Based Compensation Plans | 12 Months Ended
--- | ---
Dec. 31, 2011
Share-Based Compensation Plans |
Share-Based Compensation Plans |
Note 10. Share-Based Compensation Plans We grant share-based compensation to employees and directors of the Company. At December 31, 2011, an aggregate of 3,527,077 shares were authorized for future grant under our various share-based compensation plans, covering stock options and restricted stock awards. Awards that expire or are canceled without delivery of shares generally become available for issuance under the plans. Upon exercises of stock options or vesting of restricted shares under all of our stock plans, we issue new shares of Reliance common stock. Stock option activity under all the plans is as follows:
Stock Options |  | Option Shares |  | Weighted Average Exercise Price |  | Weighted Average Remaining Contractual Term (In years) |  | Aggregate Intrinsic Value (In millions) |
--- | --- | --- | --- | --- | --- | --- | --- | --- | ---
Outstanding at December 31, 2008 |  |  | 3,418,772 |  | $ | 41.57 |  |  |  |  |  |  |
Granted |  |  | 977,300 |  |  | 33.86 |  |  |  |  |  |  |
Exercised |  |  | (427,697 | ) |  | 24.53 |  |  |  |  |  |  |
Expired or forfeited |  |  | (159,146 | ) |  | 48.35 |  |  |  |  |  |  |
Outstanding at December 31, 2009 |  |  | 3,809,229 |  |  | 41.22 |  |  |  |  |  |  |
Granted |  |  | 1,039,400 |  |  | 42.89 |  |  |  |  |  |  |
Exercised |  |  | (827,452 | ) |  | 25.68 |  |  |  |  |  |  |
Expired or forfeited |  |  | (141,125 | ) |  | 47.10 |  |  |  |  |  |  |
Outstanding at December 31, 2010 |  |  | 3,880,052 |  |  | 44.76 |  |  |  |  |  |  |
Granted |  |  | 1,037,250 |  |  | 55.73 |  |  |  |  |  |  |
Exercised |  |  | (266,392 | ) |  | 41.60 |  |  |  |  |  |  |
Expired or forfeited |  |  | (135,350 | ) |  | 47.57 |  |  |  |  |  |  |
Outstanding at December 31, 2011 |  |  | 4,515,560 |  | $ | 47.39 |  |  | 4.4 |  | $ | 21.2 |
Exercisable at December 31, 2011 |  |  | 2,146,035 |  | $ | 46.59 |  |  | 3.5 |  | $ | 11.1 |
All options outstanding at December 31, 2011 had four-year vesting periods and seven-year terms, with the exception of 192,000 options granted to non-employee directors of the Company that had one-year vesting periods and 242,925 options that had ten-year terms. The fair value of each option grant was estimated on the date of grant using the Black-Scholes option-pricing model using the following weighted average assumptions:
|  | Year Ended December 31, |
--- | --- | --- | ---
|  | 2011 |  | 2010 |  | 2009 |
Weighted average assumptions used: |  |  |  |  |  |  |  |  |  |
Exercise price |  | $ | 55.73 |  | $ | 42.89 |  | $ | 33.86 |
Risk free interest rate |  |  | 2.20 | % |  | 2.35 | % |  | 1.87 | %
Expected life in years |  |  | 4.8 |  |  | 4.8 |  |  | 4.8 |
Expected volatility |  |  | 60 | % |  | 60 | % |  | 59 | %
Expected dividend yield |  |  | 0.86 | % |  | 0.93 | % |  | 1.18 | %
Grant date fair value |  | $ | 26.98 |  | $ | 20.62 |  | $ | 15.58 |
The total intrinsic values of all options exercised during the years ended December 31, 2011, 2010 and 2009 were $3.4 million, $16.6 million and $6.9 million, respectively. A summary of the status of the Company's non-vested stock options as of December 31, 2011 and changes during the year then ended is as follows:
Non-vested Options |  | Shares |  | Weighted Average Grant Date Fair Value |
--- | --- | --- | --- | --- | ---
Non-vested at January 1, 2011 |  |  | 2,405,950 |  | $ | 18.66 |
Granted |  |  | 1,037,250 |  | $ | 26.98 |
Forfeited |  |  | (103,600 | ) | $ | 21.25 |
Vested |  |  | (970,075 | ) | $ | 18.43 |
Non-vested at December 31, 2011 |  |  | 2,369,525 |  | $ | 22.28 |
Proceeds from option exercises under all stock option plans for the years ended December 31, 2011, 2010 and 2009 were $11.1 million, $21.2 million and $10.5 million, respectively. The tax benefit realized from option exercises during the years ended December 31, 2011, 2010 and 2009 were $1.3 million, $6.3 million and $2.7 million, respectively. The following tabulation summarizes certain information concerning outstanding and exercisable options as of December 31, 2011:
|  |  |  | Options Outstanding |  | Options Exercisable |
--- | --- | --- | --- | --- | --- | --- | ---
Range of Exercise Price |  | Outstanding at December 31, 2011 |  | Weighted Average Remaining Contractual Life in Years |  | Weighted Average Exercise Price |  | Exercisable at December 31, 2011 |  | Weighted Average Exercise Price of Options Exercisable |
| $15 - $19 |  |  | 24,000 |  |  | 3.4 |  | $ | 18.31 |  |  | 24,000 |  | $ | 18.31 |
| $24 - $28 |  |  | 50,925 |  |  | 3.5 |  | $ | 25.02 |  |  | 50,925 |  | $ | 25.02 |
| $33 - $38 |  |  | 790,675 |  |  | 4.5 |  | $ | 33.90 |  |  | 373,725 |  | $ | 34.11 |
| $42 - $45 |  |  | 1,620,435 |  |  | 4.0 |  | $ | 43.68 |  |  | 913,635 |  | $ | 44.36 |
| $55 - $57 |  |  | 1,963,525 |  |  | 4.7 |  | $ | 56.25 |  |  | 717,750 |  | $ | 56.80 |
| $61 - $67 |  |  | 66,000 |  |  | 5.9 |  | $ | 64.03 |  |  | 66,000 |  | $ | 64.03 |
| $15 - $67 |  |  | 4,515,560 |  |  | 4.4 |  | $ | 47.39 |  |  | 2,146,035 |  | $ | 46.59 |
On August 8, 2011, the Company granted 86,000 shares of restricted stock to certain officers of the Company. The awards include dividend rights and vest 20% on each anniversary date through 2016. The fair value of the restricted stock granted was $37.29 per share, determined based on the fair value of the Company's common stock on the grant date. All shares remain unvested and outstanding as of December 31, 2011. On May 18, 2011, the Company's shareholders approved the Directors Equity Plan, which replaced the Directors Stock Option Plan, and pursuant to the Directors Equity Plan, 16,079 shares of restricted stock were automatically granted to the non-employee members of the Board of Directors on that date. The awards include dividend rights and vest immediately upon grant, however, the recipients are restricted from trading the stock for one year from date of grant. The fair value of the restricted stock granted was $52.24 per share, determined based on the closing price of the Company's common stock on the grant date. On July 26, 2010, the Company granted 61,000 shares of restricted stock to certain officers of the Company. The awards vest 20% on August 1, 2011 and 20% on each August 1 thereafter through 2015. The fair value of the restricted stock granted was $41.24 per share, determined based on the fair value of the Company's common stock on the grant date. As of December 31, 2011, 48,800 shares remain unvested and outstanding. As of December 31, 2011, there was approximately $39.9 million of total unrecognized compensation cost related to non-vested share-based compensation awards granted under all share-based compensation plans. That cost is expected to be recognized over a weighted average period of 2.7 years.

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 4 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5444-113901 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Statement of Position (SOP) -Number 93-6 -Paragraph 53 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 14 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 123R -Paragraph 64, 65, A240 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 5: 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 6: 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 7: 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 8: 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 + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration