11. EQUITY

Common Stock

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

Treasury Stock

During 2012, 2013 and 2014, the Company repurchased the following shares from employees to satisfy tax withholding and stock options exercise obligations incurred in connection with the vesting of restricted stock awards and the exercise of stock options:

Year Ended December 31	Shares Repurchased		Aggregate Cost (in thousands)		Average Repurchase Price
2012		9,175	$	344	$	37.51
2013		163,222		8,103		49.64
2014		34,293		2,161		63.01

Stock-Based Compensation

The Company has 2,000,000 shares reserved 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.

Stock Options

Stock options have a term of ten years and vest annually and ratably over a period of four years.

The following table summarizes stock option activity for the years ended December 31, 2013 and 2014:

Year Ended December 31, 2013
	Number of Options			Weighted Avg. Exercise Price		Weighted Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value
Outstanding at January 1, 2013		720,448		$	34.31
Exercised		(303,536	)		30.64
Forfeited—Vested		(11,625	)		46.01
Forfeited—Unvested		(4,000	)		45.22

Outstanding at December 31, 2013		401,287			36.63		6.0	$	8,000,149


Vested and expected to vest at December 31, 2013		398,036			35.86		6.0	$	7,934,478


Exercisable at December 31, 2013		241,662			35.86		5.2	$	5,004,299

Year Ended December 31, 2014
	Number of Options			Weighted Avg. Exercise Price		Weighted Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value
Outstanding at January 1, 2014		401,287		$	36.63
Exercised		(43,034	)		37.68
Forfeited—Unvested		(7,000	)		34.22

Outstanding at December 31, 2014		351,253			36.55		5.0	$	10,901,529


Vested and expected to vest at December 31, 2014		351,142			36.56		5.0	$	10,987,590


Exercisable at December 31, 2014		290,128			36.81		4.6	$	8,929,815

The unvested options as of December 31, 2014 represent $0.4 million in unamortized stock-based compensation which will be recognized over a weighted average term of 1.0 years.

The following table summarizes information relating to options granted and exercised during 2012, 2013 and 2014 (in thousands, except fair value of options granted data):

	2012			2013		2014
Weighted-average fair value of options granted	$	15.27		$	N/A	$	N/A
Aggregate intrinsic value of options exercised		938			6,111		1,098,336
Cash proceeds received upon exercise of options		1,452			2,669		1,621
Excess tax benefits from share-based compensation		(362	)		2,101		513

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
		2012
Risk-free interest rate		1.4%
Expected dividend yield		2.5%
Expected life		6.25 years
Expected volatility		53%

The Company recognized $1.8 million, $1.4 million and $0.9 million, respectively, of stock compensation expense relating to the granted options during 2012, 2013 and 2014, respectively.

Restricted Stock

Restricted stock issued under the 2008 Equity Investment Plan vests ratably over four years.

The following table summarizes restricted stock activity during the year ended December 31, 2013:

	Shares			Weighted Avg. Fair Value
Unvested as of January 1, 2013		103,853		$	39.63
Granted		100,902			48.54
Forfeited		(250	)		46.85
Vested and issued		(49,986	)		43.96

Unvested as of December 31, 2013		154,519		$	44.04

The following table summarizes restricted stock activity during the year ended December 31, 2014:

	Shares			Weighted Avg. Fair Value
Unvested as of January 1, 2014		154,519		$	44.04
Granted		109,318			64.73
Forfeited		(8,500	)		51.44
Vested and issued		(60,194	)		44.61

Unvested as of December 31, 2014		195,143		$	55.13

In connection with the grant of restricted shares, the Company recognized $1.8 million, $3.1 million and $3.4 million of compensation expense within its income statements for 2012, 2013 and 2014, respectively.

The unvested shares as of December 31, 2014 represent $8.1 million in unamortized stock based compensation which will be recognized over a weighted average period of 2.8 years.