Share-Based Compensation

6 Months Ended

Jun. 30, 2015

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

Share-Based and Long-Term Incentive Compensation

Share-based and long-term incentive compensation expense consists of:



	Second Quarter					First Six Months
	2015			2014		2015			2014
	(In thousands)
Cash-settled awards	$	(1,447	)	$	1,488	$	(1,151	)	$	(1,195	)
Equity-settled awards	918			1,241		2,915			3,590
Restricted stock	(20		)	33		(3		)	79
Stock options	534			457		1,566			1,058
Total share-based compensation	(15		)	3,219		3,327			3,532
Deferred cash	38			—		154			—
	$	23		$	3,219	$	3,481		$	3,532

Share-based and long-term incentive compensation expense is included in:



	Second Quarter					First Six Months
	2015			2014		2015		2014
	(In thousands)
General and administrative expense	$	(276	)	$	1,290	$	1,846	$	1,267
Other operating expense	299			1,929		1,635		2,265
	$	23		$	3,219	$	3,481	$	3,532

Share-Based Compensation

In first six months 2015, we granted 89,900 cash-settled stock appreciation rights awards and 598,600 equity-settled awards. Cash-settled stock appreciation rights have a ten-year term, generally become exercisable ratably over four years and provide for accelerated or continued vesting upon retirement, death, or disability or if there is a change in control. Equity-settled awards granted to employees in the first six months 2015 include market-leveraged stock units (MSUs) and stock options. Equity-settled MSUs will be settled in common stock based upon our stock price performance over three years from the date of grant. Stock options have a ten-year term, generally become exercisable ratably over four years and provide for accelerated or continued vesting upon retirement, death, or disability or if there is a change in control. Equity-settled awards in the form of restricted stock units granted to our directors are fully vested at the time of grant and are issued upon retirement.

The fair value of awards granted to retirement eligible employees expensed at the date of grant was $517,000 and $760,000 in first six months 2015 and 2014. Unrecognized share-based compensation expense related to non-vested equity-settled awards, restricted stock and stock options is $8,843,000 at second quarter-end 2015.

In first six months 2015 and 2014, we issued 157,201 and 162,380 shares out of our treasury stock associated with vesting of stock-based awards or exercise of stock options, net of 48,636 and 51,681 shares withheld having a value of $723,000 and $972,000 for payroll taxes in connection with vesting of stock-based awards or exercise of stock options.

Long-Term Incentive Compensation

In first six months 2015, we granted $587,000 of long-term incentive compensation in the form of deferred cash compensation. Deferred cash will be paid out after the earlier of three years or the employee's retirement eligibility date and the expense is recognized ratably over the vesting period. The accrued liability was $154,000 at second quarter-end 2015 and is included in other liabilities.