Annual report pursuant to Section 13 and 15(d)

Stock-Based Compensation (Tables)

v2.4.0.6
Stock-Based Compensation (Tables)
 12 Months Ended
Dec. 31, 2012
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Schedule of Stock-Based Compensation Expense
Stock-based compensation expense consisted of the following (in thousands):
 
 
Year Ended December 31,
 
 
2012
 
2011
 
2010
Cost of sales
 
$
287

 
$
282

 
$
286

Selling, general and administrative expense
 
7,546

 
7,588

 
6,444

Pre-tax stock-based compensation expense
 
7,833

 
7,870

 
6,730

Income tax benefits
 
(2,724
)
 
(2,729
)
 
(2,162
)
Total stock-based compensation expense, net of tax
 
$
5,109

 
$
5,141

 
$
4,568

Schedule of Weighted Average Assumptions
The following table presents the weighted average assumptions for the years ended December 31:
 
 
2012
 
2011 (1)
 
2010
Expected term
 
4.78 years
 
5.12 years
 
4.53 years
Expected stock price volatility
 
32.20%
 
30.76%
 
28.79%
Risk-free interest rate
 
0.88%
 
1.84%
 
1.91%
Expected dividend yield
 
1.80%
 
1.31%
 
1.64%
Weighted average grant date fair value
 
$11.57
 
$16.09
 
$10.08

—————
(1)
During the year ended December 31, 2011, the Company granted two stock option awards totaling 53,720 shares that vest 100% on the fifth anniversary of the grant date. Because the Company did not have sufficient historical exercise data to provide a reasonable basis upon which to estimate the expected term for these grants, the Company utilized the simplified method in developing an estimate of the expected term of these options.
Summary of Stock Option Activity
The following table summarizes stock option activity under the Plan:
 
 
Number of  
Shares 
 
 Weighted 
 Average  
Exercise  
Price
 
Weighted Average Remaining Contractual Life
 
Aggregate Intrinsic Value (in thousands)
Options outstanding at January 1, 2010
 
1,760,173

 
$
42.08

 
6.25
 
$
4,599

Granted
 
385,924

 
44.11

 
 
 
 
Cancelled
 
(77,481
)
 
46.04

 
 
 
 
Exercised
 
(196,402
)
 
37.34

 
 
 
 
Options outstanding at December 31, 2010
 
1,872,214

 
42.84

 
6.33
 
33,057

Granted
 
340,973

 
61.38

 
 
 
 
Cancelled
 
(40,396
)
 
43.68

 
 
 
 
Exercised
 
(253,695
)
 
43.32

 
 
 
 
Options outstanding at December 31, 2011
 
1,919,096

 
46.05

 
6.25
 
9,141

Granted
 
358,169

 
48.82

 
 
 
 
Cancelled
 
(172,465
)
 
52.90

 
 
 
 
Exercised
 
(380,811
)
 
38.34

 
 
 
 
Options outstanding at December 31, 2012
 
1,723,989

 
$
47.64

 
6.15
 
$
13,001

Options vested and expected to vest at December 31, 2012
 
1,672,468

 
$
47.51

 
6.08
 
$
12,808

Options exercisable at December 31, 2012
 
989,092

 
$
46.09

 
4.63
 
$
8,708

Schedule Of Weighted Average Assumptions for Restricted Stock Units
The following table presents the weighted average assumptions for the years ended December 31:
 
 
2012
 
2011
 
2010
Vesting period
 
3.86 years
 
3.96 years
 
3.75 years
Expected dividend yield
 
1.77%
 
1.33%
 
1.56%
Estimated average fair value per restricted stock unit granted
 
$46.57
 
$58.37
 
$43.95
Summary of Restricted Stock Unit Activity
The following table summarizes the restricted stock unit activity under the Plan:
 
 
Number of  
Shares
 
Weighted Average  
Grant Date Fair Value Per Share 
Restricted stock units outstanding at January 1, 2010
 
286,520

 
$36.35
Granted
 
128,525

 
43.95
Vested
 
(62,417
)
 
42.95
Forfeited
 
(23,833
)
 
42.44
Restricted stock units outstanding at December 31, 2010
 
328,795

 
37.63
Granted
 
145,768

 
58.37
Vested
 
(146,951
)
 
38.01
Forfeited
 
(30,860
)
 
41.79
Restricted stock units outstanding at December 31, 2011
 
296,752

 
47.19
Granted
 
185,303

 
46.57
Vested
 
(91,383
)
 
42.39
Forfeited
 
(70,114
)
 
46.26
Restricted stock units outstanding at December 31, 2012
 
320,558

 
$48.31