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81
Share-Based Compensation
Stock options
Shares of common stock are issued upon exercise of stock options. The following table presents a summary of stock option
activity for 2014:
Shares in thousands Options
Weighted Average
Exercise Price
Outstanding, December 31, 2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 248 $ 45.72
Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . —$ —
Exercised . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (103) $ 36.17
Canceled, expired, or forfeited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (17) $ 52.04
Outstanding, December 31, 2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128 $ 52.59
Certain information regarding stock options outstanding as of December 31, 2014, is as follows:
Options
Shares and intrinsic value in thousands Outstanding Exercisable
Number . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128 58
Weighted average per share exercise price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 52.59 $ 51.48
Aggregate intrinsic value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,904 $ 1,384
Weighted average remaining contractual term (in years) . . . . . . . . . . . . . . . . . . . . . . . 7.31 6.79
Restricted stock and performance based restricted stock awards
Restricted stock awards are granted to eligible employees, including executives, and non-employee directors. Awards granted to
employees and executives vest annually in equal installments over four years. Non-employee director awards vest one year
after the grant date. Performance-based restricted stock awards are granted to executives only, with established performance
criteria approved by the Compensation Committee of the Board of Directors. The fair value of non-performance-based awards
is based on the market price on the grant date and is recognized on a straight-line basis over the vesting period.
Awards of performance-based restricted stock made prior to 2013, once earned, vest in equal installments over three years from
the date of grant. Awards of performance-based restricted stock made in and subsequent to 2013, once earned, vest in two
installments over three years from the date of grant (65% of the award vests two years from the date of grant and the remaining
35% of the award vests three years from the date of grant). The restricted shares require no payment from the grantee. The fair
value of performance-based awards is based on achieving specific performance conditions and is recognized over the vesting
period if and when we conclude that it is probable that the performance condition will be achieved.
The following table presents a summary of restricted stock award activity for 2014:
Shares in thousands
Restricted
Stock Awards
Weighted Average
Grant Date Fair
Value
Non-vested, December 31, 2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 597 $ 52.58
Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 347 $ 71.37
Vested . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (190) $ 50.41
Forfeited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (145) $ 59.35
Non-vested, December 31, 2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 609 $ 62.35