XML 57 R15.htm IDEA: XBRL DOCUMENT v2.4.0.8
Shareholders' Equity
 6 Months Ended
Jun. 30, 2014
Stockholders' Equity Note [Abstract]  
Shareholders' Equity
Shareholders’ Equity
Stock-Based Compensation
On March 19, 2014, the Company’s Board of Directors approved the 2014 Omnibus Equity Compensation Plan (the 2014 Plan), which was later approved by the shareholders of the Company on May 21, 2014. The 2014 Plan became effective upon receipt of the shareholders' approval on May 21, 2014 and is the successor equity compensation plan to the 2007 Equity Compensation Plan (the 2007 Plan) which was merged with and into the 2014 Plan. The 2014 Plan provides for the grant of stock options, stock units, stock awards, stock appreciation rights and other stock-based awards.
No further grants will be made under the 2007 Plan, and shares with respect to all grants outstanding under the 2007 Plan will be issued or transferred under the 2014 Plan. Permitted grantees under the 2014 Plan include employees, non-employee directors and consultants who perform services for the Company. The plan is administered by the Compensation Committee of the Board of Directors of the Company. There were no grants of stock options, stock units, stock awards, stock appreciation rights or other stock-based awards made under the 2014 Plan as of June 30, 2014.
The Company has only non-qualified stock options outstanding under the merged plan. All outstanding stock options have performance-based vesting provisions specific to each option grant that tie the vesting of the applicable stock options to the Company’s financial performance. The Company’s stock options vest at a rate of 50 percent when specified diluted earnings per share targets are achieved, and the remaining 50 percent when secondary, higher specified diluted earnings per share targets are achieved. The amount of stock-based compensation expense is based upon management’s estimate of when the earnings per share targets may be achieved.
The Company recognized stock-based compensation expense in its Consolidated Financial Statements in the three and six months ended June 30, 2014 and 2013, respectively, as follows: 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2014
 
2013
 
2014
 
2013
Stock-based compensation expense
$
2,872

 
$
10,607

 
$
5,695

 
$
15,900

Less: Deferred tax benefit
(939
)
 
(3,867
)
 
(1,950
)
 
(5,783
)
Stock-based compensation expense, net of tax
$
1,933

 
$
6,740

 
$
3,745

 
$
10,117

As of June 30, 2014, there was approximately $33,865 of unrecognized compensation cost remaining, adjusted for estimated forfeitures, related to unvested employee stock options that management expects will vest and is being amortized.
The Company issues new common shares associated with the exercise of stock options. The total intrinsic value of options exercised during the six months ended June 30, 2014 was $50,471. The total options exercisable as of June 30, 2014 had an intrinsic value of $158,021. The total intrinsic value for options exercisable is calculated as the difference between the market value of the Company’s common stock as of June 30, 2014 and the weighted average exercise price of the shares. The market value of the Company’s common stock as of June 30, 2014 was $32.77 as reported by the Nasdaq Stock Market, LLC. The weighted average exercise price of the options exercisable as of June 30, 2014 was $19.57. Total options that were outstanding and exercisable as of June 30, 2014 were 20,994,000 and 11,974,000, respectively.
Common Stock Buyback
The Company’s Board of Directors, under multiple authorizations, has authorized the repurchase of the Company’s common stock on the open market or through private transactions. The Company purchased 4,261,000 shares at a total cost of $140,568 during the six months ended June 30, 2014. The cost of stock purchases during the period includes the cost of certain transactions that settled in the following quarter. As of July 22, 2014, the Company has $140,502 of authorization remaining for the purchase of common stock under the program.
The Company immediately retires its common stock when purchased. Upon retirement, the Company reduces Capital in excess of par value for the average capital per share outstanding and the remainder is charged against Retained earnings. If the Company reduces its Retained earnings to zero, any subsequent purchases of common stock will be charged entirely to Capital in excess of par value.
Cash Dividend
On May 21, 2014, the Board of Directors declared a cash dividend of $0.22 per share on the Company's common stock, which was paid on June 24, 2014, to shareholders of record on June 16, 2014. Cash dividends declared during the six months ended June 30, 2014 and 2013 were $36,942 and $34,400, respectively.