Stock-Based Incentive Plans

3 Months Ended

Mar. 31, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

The Company currently has one stock-based incentive plan, which incorporates and supersedes its two previous plans (see Note 1 “Basis of Presentation — Accounting for Stock-Based Compensation”). Participants are granted stock-based awards only if the applicable Company-wide or profit-center operating goals, or both, established by the Compensation and Leadership Development Committee of the Board of Directors at the beginning of the year, are met. Certain participants may have additional goals based on strategic initiatives of the Company.

The fair value of each restricted stock unit award is estimated on the date of the award based on the closing market price of the underlying stock on the day preceding the date of the award. On February 2, 2015, 339,047 restricted stock units were awarded, including 8,550 awarded to the Company’s directors who are not employees, at an estimated value of $32.64 per share, based on the closing price on January 30, 2015. The restrictions on these awards generally lapse one quarter on the date of the award and one quarter on each of the first, second and third anniversaries of the date of the award.

The following table summarizes the Company’s unvested restricted stock unit activity for the three months ended March 31, 2015:



	Shares		Weighted- Average Price		Aggregate Intrinsic Value *
Unvested Restricted Stock Units (RSUs)	(in thousands)		Weighted- Average Price		(in thousands)
Outstanding at January 1, 2015	504		$	31.67
Awarded	339
Vested	(302	)
Forfeited	(2	)
Outstanding at March 31, 2015	539		$	31.56	$	20,140
Outstanding and expected to vest at March 31, 2015	527		$	31.56	$	19,681


*	The intrinsic value is calculated using the closing price per share of $37.37 as reported by the New York Stock Exchange on March 31, 2015.

Based on the market value on the award date, the total intrinsic value of vested restricted stock units during the three-month periods ended March 31, 2015 and 2014, was $9.7 million and $7.9 million, respectively.

No stock options were granted in 2014 or the first three months of 2015. The following table summarizes the Company’s stock option activity for the three months ended March 31, 2015:



	Shares		Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life	Aggregate Intrinsic Value *
Non-Qualified Stock Options	(in thousands)				(in years)	(in thousands)
Outstanding at January 1, 2015	855		$	29.48
Exercised	(186	)
Forfeited	(2	)
Outstanding at March 31, 2015	667		$	29.50		$	5,248
Outstanding and expected to vest at March 31, 2015	661		$	29.50	2.8	$	5,200
Exercisable at March 31, 2015	667		$	29.50	2.8	$	5,248


*	The intrinsic value represents the amount, if any, by which the fair market value of the underlying common stock exceeds the exercise price of the stock option, using the closing price per share of $37.37 as reported by the New York Stock Exchange on March 31, 2015.

The total intrinsic value of stock options exercised during the three-month periods ended March 31, 2015 and 2014, was $1.2 million and $0.3 million, respectively.

A summary of the status of unvested stock options as of March 31, 2015, and changes during the three months ended March 31, 2015, are presented below:



	Shares	Weighted- Average Grant-Date Fair Value
Unvested Stock Options	(in thousands)
Unvested at January 1, 2015	99	$	10.33
Vested	99	10.33
Unvested at March 31, 2015	—	$	—

As of March 31, 2015, $12.0 million of total unrecognized compensation cost was related to unvested stock-based compensation arrangements under the 2011 Incentive Plan and is expected to be recognized over a weighted-average period of 2.3 years.

- 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.

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