XML 26 R17.htm IDEA: XBRL DOCUMENT v2.4.0.6
EQUITY
 12 Months Ended
Dec. 31, 2011
EQUITY  
EQUITY

9. EQUITY

Common Stock

        The Company has paid quarterly dividends on its common stock since January 1999.

Treasury Stock

        During 2009, the Company reissued 791 shares from treasury to a director under the Director's Remuneration Plan. Also, during the fourth quarter of 2009, the Company repurchased 2,981 shares of its common stock at an aggregate cost of $134,360 or an average price of $45.07 per share from employees to satisfy tax obligations upon vesting of restricted stock.

        During 2010, the Company reissued 790 shares from treasury to a director under the Director's Remuneration Plan. Also, during the fourth quarter of 2010, the Company repurchased 1,331 shares of its common stock at an aggregate cost of $43,923 or an average price of $33.00 per share from employees to satisfy tax obligations upon vesting of restricted stock.

        During 2011, the Company repurchased 5,470 shares of its common stock at an aggregate cost of $218,255 or an average price of $39.40 per share from employees to satisfy tax obligations upon vesting of restricted stock.

Stock-Based Compensation

        In May 2008, at the Company's Annual Meeting of Stockholders, the Company's stockholders approved the 2008 Equity Incentive Plan (the "2008 Plan"). The 2008 Plan replaced the 1998 Stock Option Plan, the 2005 Restricted Stock Plan and the Director's Remuneration Plan (collectively and including the 2008 Plan the "Share Based Plans"), under which no further awards will be made. The 2008 Plan allows for the grant of stock options, restricted stock, restricted stock units, stock equivalents and awards of shares of common stock that are not subject to restrictions or forfeiture. The 2008 Plan was amended in 2011 to increase the total number of shares reserved to be granted under the 2008 Plan from 1,500,000 to 2,000,000.

Stock Options

        Stock options issued under the Share Based Plans have terms of either seven or ten years and vest annually and ratably over a period of four years.

        The following table summarizes stock option activity under the Company's share-based plans for the years ended December 31, 2010 and 2011:

Year Ended December 31, 2010  
 
   Number of
Options 		  Weighted Avg.
Exercise Price 		  Weighted Average
Remaining
Contractual
Term (Years) 		  Aggregate
Intrinsic Value 		 

Outstanding at January 1, 2010

     539,875   $ 25.49              

Granted

     172,500     46.63              

Forfeited

     (1,125 )   20.79              

Exercised

     (85,500 )   19.33              
                   

Outstanding at December 31, 2010

     625,750   $ 32.17     6.88   $ 5,305,529  
                   

Vested and expected to vest at December 31, 2010

     575,889   $ 31.37     6.72   $ 5,151,035  
                   

Exercisable at December 31, 2010

     339,004   $ 26.14     5.59   $ 4,145,915  
                   

 

Year Ended December 31, 2011  
 
   Number of
Options 		  Weighted Avg.
Exercise Price 		  Weighted Average
Remaining
Contractual
Term (Years) 		  Aggregate
Intrinsic Value 		 

Outstanding at January 1, 2011

     625,750   $ 32.17              

Granted

     146,500     33.29              

Forfeited

     —     —              

Exercised

     (51,602 )   22.77              
                   

Outstanding at December 31, 2011

     720,648     33.07     6.79     5,617,669  
                   

Vested and expected to vest at December 31, 2011

     674,469     32.74     6.66     5,248,211  
                   

Exercisable at December 31, 2011

     409,149   $ 29.44     5.41     4,259,541  
                   

        The unvested options as of December 31, 2011 represent $3.1 million in unamortized stock based compensation which will be recognized over a weighted average term of 2.7 years.

        The following table summarizes information relating to options granted and exercised during 2009, 2010 and 2011:

 
   2009   2010   2011  

Weighted-average of fair value of options granted

   $ 6.55   $ 18.26   $ 13.18  

Aggregate intrinsic value of options exercised

     25,288     2,141,320     821,582  

Cash proceeds received upon exercise of options

     73,500     1,652,912     1,174,983  

Tax benefits realized upon exercise of options

     25,000     593,503     —  

        The aggregate intrinsic value represents the total pre-tax intrinsic value (the difference between our closing common stock price on December 31st and the exercise price, multiplied by the number of the in-the-money stock options) that would have been received by the stock option holders had all stock options holders exercised their stock options on December 31st. The amount of aggregate intrinsic value will change based on the fair market value of our common stock.

        The estimated fair value of the options granted were determined using a Black Scholes option pricing model, based on the following weighted average assumptions:

 
   Options Granted in
 
   2009   2010   2011

Risk-free interest rate

   1.8%   2.5%   2.1%

Expected dividend yield

   3.0%   2.5%   2.7%

Expected life

   6.25 years   6.25 years   6.25 years

Expected volatility

   42%   50%   51%

        The Company recognized $842,000, $1,145,000 and $1,579,000, respectively, of stock compensation expense relating to the granting of stock options during 2009, 2010 and 2011, respectively.

Restricted Stock

        Restricted stock issued under the Share Based Plans vest ratably over four years.

        The following table summarizes restricted stock activity during the year ended December 31, 2011:

 
   Shares   Weighted Avg.
Fair Value 		 

Unvested as of January 1, 2011

     76,287     42.10  

Granted

     21,925     34.64  

Vested and issued

     (30,439 )   38.21  
           

Unvested as of December 31, 2011

     67,773     41.43  
           

        The weighted-average grant date fair value of shares granted for 2010 and 2011 were $46.50 per share and $34.64 per share, respectively. In connection with the grant of restricted shares, the Company recognized $395,000, $898,000 and $1,225,000 of compensation expense within its income statements for 2009, 2010 and 2011, respectively.

        The unvested shares as of December 31, 2011 represent $2.0 million in unamortized stock based compensation which will be recognized over a weighted average period of 2.4 years.