Quarterly report pursuant to Section 13 or 15(d)

STOCKHOLDERS' EQUITY

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STOCKHOLDERS' EQUITY
 9 Months Ended
Sep. 30, 2014
Stockholders' Equity Note [Abstract]  
STOCKHOLDERS' EQUITY

NOTE 6.      STOCKHOLDERS’ EQUITY

 

During the nine months ended September 30, 2014 the Company paid $45.9 million or $0.315 per share in cash dividends compared to $39.4 million or $0.27 per share during the same period in 2013.

 

During the third quarter ended September 30, 2014, the Company repurchased from the open market 0.8 million shares of its $1 par value common stock at a weighted average price of $29.11 per share compared to 0.2 million shares purchased at a weighted average price of $24.72 during the same period in 2013. For the nine month period ended September 30, 2014, the Company repurchased 1.0 million shares from the open market of its $1 par value common stock at a weighted average price of $29.19 per share compared to 0.3 million shares purchased at a weighted average price of $24.56 during the same period in 2013.

 

The Company repurchased $0.1 million and $0.4 million of common stock for the third quarters ended September 30, 2014 and 2013, respectively, and repurchased $6.2 million and $5.3 million of common stock for the nine months ended September 30, 2014 and 2013, respectively, from employees for the payment of taxes on vesting restricted shares.

 

As more fully discussed in Note 14 of the Company’s notes to the consolidated financial statements in its 2013 Annual Report on Form 10-K, stock options, time lapse restricted shares (TLRS’s) and restricted stock units have been issued to officers and other management employees under the Company’s Employee Stock Incentive Plans.  The Company issues new shares from its authorized but unissued share pool. At September 30, 2014, approximately 3.8 million shares of the Company’s common stock were reserved for issuance.

 

Stock Options

 

Stock options generally vest over a five-year period and expire ten years from the issuance date. For the nine months ended September 30, 2014, the Company did not issue any shares of common stock under exercise of stock options by employees with one thousand shares issued for the same period in 2013.

 

There were no options outstanding under the Company’s stock option plan as of September 30, 2014 or December 31, 2013.

 

The aggregate intrinsic value of options exercised during the nine months ended September 30, 2014 and 2013 was zero and $20 thousand, respectively. There were no options exercised for the third quarters ended September 30, 2014 and 2013, respectively.

 

Time Lapse Restricted Shares and Restricted Stock Units

 

The following table summarizes the components of the Company’s stock-based compensation programs recorded as expense:

 

    Three Months Ended   Nine Months Ended
    September 30,   September 30,
(in thousands)   2014   2013   2014   2013
Time lapse restricted stock:                                
Pre-tax compensation expense   $ 2,587     $ 2,717     $ 7,954     $ 7,809  
Tax benefit     (996 )     (1,046 )     (3,062 )     (3,006 )
Restricted stock expense, net of tax   $ 1,591     $ 1,671     $ 4,892     $ 4,803  

 

The Company recognized a tax benefit of approximately $0.1 million and $0.4 million during the third quarters ended September 30, 2014 and 2013, respectively, and approximately $4.5 million and $3.5 million for the nine months ended September 30, 2014 and 2013, respectively, related to the vesting of restricted shares which have been recorded as increases to paid-in capital.

The following table summarizes information on unvested restricted stock outstanding as of September 30, 2014:

 

    Number of Shares   Weighted-Average Grant-Date Fair Value
Unvested Restricted Stock Units at December 31, 2013     2,454     $ 18.75  
Forfeited     (115 )     21.43  
Vested     (677 )     15.45  
Granted     411       28.74  
Unvested Restricted Stock Units at September 30, 2014     2,072     $ 21.67  

 

At September 30, 2014 and December 31, 2013, the Company had $32.1 million and $30.7 million of total unrecognized compensation cost, respectively, related to time-lapse restricted shares that are expected to be recognized over a weighted average period of approximately 3.8 years, each.