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Share-Based Compensation | 9 Months Ended
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Sep. 30, 2012
Share-Based Compensation | Note 8 – Share-Based Compensation Stock Options During the nine months ended September 30, 2012, the stock option activity under our 2002 Stock Option Plan, 1995 Incentive and Non-Qualified Stock Option Plan for key employees, and 1996 Non-Employee Director’s Stock Option Plan (collectively the “Stock Option Plans”), was as follows:
|  | Weighted Average Exercise Price |  |  | Number of Shares |  |  | Weighted Average Remaining Contractual Life (In Years) |  |  | Aggregate Intrinsic Value |
Outstanding, January 1, 2012 |  | $ | 10.97 |  |  |  | 2,912,000 |  |  |  |  |  |  |  |  |
Granted |  |  | 17.50 |  |  |  | 601,000 |  |  |  |  |  |  |  |  |
Cancelled |  |  | 14.33 |  |  |  | (73,000 | ) |  |  |  |  |  |  |  |
Exercised |  |  | 9.40 |  |  |  | (443,000 | ) |  |  |  |  |  |  |  |
Outstanding, September 30, 2012 |  | $ | 12.43 |  |  |  | 2,997,000 |  |  |  | 6.15 |  |  | $ | 31,265,000 |
Options exercisable as of September 30, 2012 |  |  |  |  |  |  | 1,359,000 |  |  |  | 3.95 |  |  | $ | 18,961,000 |
The weighted average fair value per share of options granted during the 2012 and 2011 nine month periods ended September 30 was $4.74 and $3.26, respectively. The following table summarizes information about stock options outstanding at September 30, 2012.
|  | Options Outstanding |  |  |  |  |  | Options Exercisable |
Exercise Price Range |  | Number Outstanding |  |  | Average Remaining Contractual Life |  |  | Weighted Average Exercise Price Per Share |  |  | Number Exercisable |  |  | Weighted Average Exercise Price |
$ 2.41 - 3.68 |  |  | 399,000 |  |  |  | 0.85 |  |  | $ | 3.24 |  |  |  | 399,000 |  |  | $ | 3.24 |
6.07 |  |  | 267,000 |  |  |  | 2.24 |  |  |  | 6.07 |  |  |  | 267,000 |  |  |  | 6.07 |
10.39 |  |  | 410,000 |  |  |  | 6.27 |  |  |  | 10.39 |  |  |  | 196,000 |  |  |  | 10.39 |
13.93 - 14.31 |  |  | 869,000 |  |  |  | 6.49 |  |  |  | 14.16 |  |  |  | 420,000 |  |  |  | 14.09 |
$16.11 - 17.50 |  |  | 1,052,000 |  |  |  | 8.83 |  |  |  | 16.89 |  |  |  | 77,000 |  |  |  | 16.11 |
|  |  | 2,997,000 |  |  |  | 6.15 |  |  | $ | 12.43 |  |  |  | 1,359,000 |  |  | $ | 8.90 |
Other information pertaining to option activity during the nine month periods ended September 30, 2012 and 2011 was as follows:
|  | September 30, 2012 |  |  | September 30, 2011 |
Weighted average grant-date fair value of stock options granted: |  | $ | 2,438,000 |  |  | $ | 1,477,000 |
Total fair value of stock options vested: |  | $ | 1,870,000 |  |  | $ | 1,015,000 |
Total intrinsic value of stock options exercised: |  | $ | 5,026,000 |  |  | $ | 4,736,000 |
Total pre-tax share-based compensation expense charged against income: |  | $ | 1,423,000 |  |  | $ | 1,402,000 |
Total unrecognized compensation expense related to non-vested options: |  | $ | 4,473,000 |  |  | $ | 4,015,000 |
Under our Stock Option Plans at September 30, 2012, in addition to the 2,997,000 shares issuable pursuant to outstanding option grants, an additional 3,338,000 shares of our Common Stock are available for future grants. Such 3,338,000 shares consist of 1,338,000 shares from our Stock Option Plans that were rolled into our recently approved 2012 Equity Incentive Plan (the “2012 Plan”) plus an additional 2,000,000 shares that are contained in the 2012 Plan. Options outstanding and exercisable were granted at stock option prices which were not less than the fair market value of our Common Stock on the date the options were granted and no option has a term in excess of ten years. Additionally, with the exception of the options granted in years 2008 through 2012, options vested and became exercisable either on the date of grant or commencing nine months after the option grant date. The options granted in 2008 through 2012 become vested and exercisable ratably over a five year period on each anniversary date of the option grant. At September 30, 2012, the total unrecognized compensation expense related to non-vested options, as reported above, was expected to be recognized through the fourth quarter of 2016 for the options granted in 2012 and the fourth quarter of 2015 for the options granted in 2011. The fair value of options granted in 2012 and 2011 was estimated on the date of grant using the Black-Scholes valuation model with the following weighted average assumptions:
|  | September 30, 2012 |  |  | September 30, 2011 |
Risk-free interest rate |  |  | 1.3 | % |  |  | 2.6 | %
Expected volatility |  |  | 39.2 | % |  |  | 27.4 | %
Weighted average expected life in years |  |  | 6.8 |  |  |  | 7.4 |
Dividend yield |  |  | 3.6 | % |  |  | 3.7 | %
Employee Stock Purchase Plan Total pre-tax share-based compensation expense charged against income for the nine month periods ended September 30, 2012 and 2011 for options granted under our Employee Stock Purchase Plan (“ESPP”) was $276,000 and $228,000, respectively. It is estimated, at this time, that the expense attributable to such share-based payments in the fourth quarter of 2012 will approximate the amount recorded in the 2012 first, second and third quarters. However, such future expense related to our ESPP will be impacted by, and be dependent on the change in our stock price over the remaining period up to the December 31, 2012 measurement date. Such expense was estimated on the date of grant using the Black-Scholes valuation model with the following weighted average assumptions:
|  | September 30, 2012 |  |  | September 30, 2011 |
Risk-free interest rate |  |  | 0.19 | % |  |  | 0.04 | %
Expected volatility |  |  | 36.5 | % |  |  | 25.0 | %
Weighted average expected life in years |  |  | 1.0 |  |  |  | 1.0 |
Dividend yield |  |  | 3.6 | % |  |  | 3.7 | %
We may issue new common stock or re-issue common stock from treasury to satisfy our obligations under any of our share-based compensation plans.

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- 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 SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 14 Reference 2: 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 Reference 3: 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 4: 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 5: 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 6: 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 7: 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 8: 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 + Details
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