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FORM 10-K
63
NOTE 11 – ACCUMULATED OTHER COMPREHENSIVE LOSS
The table below identifies reclassification adjustments from “Accumulated other comprehensive loss” and the affect on the Consolidated
Statements of Income for the year ended December 31, 2011 (in thousands):
Affected Line Item in the Consolidated Statements of Income
Amount Reclassified from Accumulated Other
Comprehensive Loss
Unrealized loss on cash flow hedges:
Termination of interest rate swap agreements, before tax $ 4,237
Tax expense (1,267)
Net of tax as of December 31, 2011 $ 2,970
No adjustments to “Accumulated other comprehensive loss” were recorded during the years ended December 31, 2013 or 2012.
NOTE 12 – SHARE-BASED COMPENSATION AND BENEFIT PLANS
The Company recognizes share-based compensation expense based on the fair value of the grants, awards or shares at the time of the
grant, award or issuance. Share-based compensation includes stock option awards issued under the Company’s employee incentive plans
and director stock plan, restricted stock awarded under the Company’s employee incentive plans, performance incentive plan and director
stock plan, stock issued through the Company’s employee stock purchase plan and stock awarded to employees through other benefit
programs.
The table below identifies the shares that have been authorized for issuance and the shares available for future issuance under the Company
plans, as of December 31, 2013 (in thousands):
Plans
Total Shares Authorized for Issuance
under the Plans
Shares Available for Future
Issuance under the Plans
Employee Incentive Plans 34,000 6,711
Director Stock Plan 1,000 267
Performance Incentive Plan 650 378
Employee Stock Purchase Plans 4,250 901
Profit Sharing and Savings Plan 4,200 349
Stock options:
The Company’s employee incentive plans provide for the granting of stock options for the purchase of common stock of the Company
to certain key employees of the Company. Employee stock options are granted at an exercise price that is equal to the closing market
price of the Company’s common stock on the date of the grant. Employee stock options granted under the plans expire after ten years
and typically vest 25% per year, over four years, or the minimum required service period. The Company records compensation expense
for the grant date fair value of the option awards, adjusted for estimated forfeitures, evenly over the vesting period.
The table below identifies the employee stock option activity under these plans during the year ended December 31, 2013:
Shares
(in thousands)
Weighted-
Average Exercise
Price
Average
Remaining
Contractual
Terms
(in years)
Aggregate
Intrinsic Value
(in thousands)
Outstanding at December 31, 2012 6,721 $ 51.03
Granted 363 105.11
Exercised (1,375)43.09
Forfeited (532)76.77
Outstanding at December 31, 2013 5,177 $ 54.28 6.1 $ 385,330
Vested or expected to vest at December 31, 2013 4,909 $ 52.87 6.0 $ 372,291
Exercisable at December 31, 2013 3,169 $ 36.92 4.8 $ 290,911