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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.