Annual report pursuant to Section 13 and 15(d)

STOCK OPTION AND PURCHASE PLANS (Tables)

v2.4.0.8
STOCK OPTION AND PURCHASE PLANS (Tables)
12 Months Ended
Dec. 31, 2013
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Summary of Weighted Average Fair Value of Options Granted

 In general, options granted to outside directors vest six months from the date of grant and options granted to officers and key employees straight line vest over a five-year period from the date of grant.

 

     2013      2012      2011  

Weighted Average Fair Value of the Options Granted

   $ 23.22       $ 9.93       $ 12.65   
Summary of Weighted-Average Assumptions

The weighted average fair value for these options was estimated at the date of grant using a Black-Scholes option pricing model with the following weighted-average assumptions:

 

     2013    2012    2011

Risk-free Interest Rate

   0.88% - 2.22%    0.89% - 1.00%    1.55% - 2.82%

Dividend Yield

   0.0%    0.0%    0.0%

Volatility Factor

   0.51-0.56    0.52-0.64    0.52-0.53

Expected Life in Years

   5.0 – 8.0    5.0 – 8.0    7.0 – 8.0

Compensation Expense Information Based on Fair Value of Stock Options

The following table provides compensation expense information based on the fair value of stock options for the years ended December 31, 2013, 2012 and 2011:

 

(In thousands)    2013     2012     2011  

Stock Compensation Expense

   $ 1,384      $ 1,351      $ 1,061   

Tax Benefit

     (112     (136     (93
  

 

 

   

 

 

   

 

 

 

Stock Compensation Expense, Net of Tax

   $ 1,272      $ 1,215      $ 968   
  

 

 

   

 

 

   

 

 

 

Summary of Company's Stock Option Activity and Related Information

A summary of the Company’s stock option activity and related information for the years ended December 31 is as follows:

 

(Aggregate intrinsic value in thousands)   2013     2012     2011  
    Options     Weighted
Average
Exercise
Price
    Aggregate
Intrinsic
Value
    Options     Weighted
Average
Exercise
Price
    Aggregate
Intrinsic
Value
    Options     Weighted
Average
Exercise
Price
    Aggregate
Intrinsic
Value
 

Outstanding at January 1

    1,521,275      $ 8.23      $ 65,072        1,661,445      $ 6.71      $ 20,532        1,904,232      $ 5.58      $ 38,778   

Options Granted

    69,720      $ 42.67      $ 581        130,500      $ 18.08      $ 129        84,938      $ 22.44      $ 299   

Options Exercised

    (181,218   $ 4.25      $ (8,472     (270,670   $ 3.67      $ (4,168     (327,725   $ 4.25      $ (7,112

Options Forfeited

    —        $ —        $ —          —        $ —        $ —          —        $ —        $ —     

Outstanding at December 31

    1,409,777      $ 10.44      $ 57,181        1,521,275      $ 8.23      $ 16,493        1,661,445      $ 6.71      $ 31,965   

Exercisable at December 31

    1,149,532      $ 7.81      $ 49,648        1,168,459      $ 6.72      $ 14,431        1,280,744      $ 5.47      $ 26,237   

Summary of Weighted Average Exercise Prices and Contractual Lives for Outstanding and Exercisable Stock Options

The following is a summary of weighted average exercise prices and contractual lives for outstanding and exercisable stock options as of December 31, 2013:

 


     Outstanding      Exercisable  

Exercise Price Range

   Shares      Weighted Average
Remaining Life
in Years
     Weighted Average
Exercise Price
     Shares      Weighted Average
Remaining Life
in Years
     Weighted
Average
Exercise Price
 

$  2.68 - $ 3.45

     265,404         0.9       $ 3.07         265,404         0.9       $ 3.07   

$  4.84 - $ 7.07

     578,364         4.7         5.34         533,109         4.6         5.35   

$  9.15 - $10.07

     141,975         3.2         9.35         141,975         3.2         9.35   

$14.01 - $24.88

     372,314         7.5         18.62         209,044         6.9         19.08   

$41.40 - $51.93

     51,720         9.9         49.49         —           —           —     
  

 

 

          

 

 

       
     1,409,777         4.8         10.44         1,149,532         4.0         7.81   
  

 

 

          

 

 

       
Fair Value for Options Granted under Employee Stock Purchase Plan

The fair value for the options granted under the Employee Stock Purchase Plan was estimated at the date of grant using a Black-Scholes option pricing model with the following weighted-average assumptions:

 

     2013     2012     2011  

Risk-free Interest Rate

     0.10     0.17     0.10

Dividend Yield

     0.0     0.0     0.0

Volatility Factor

     .37        .37        .52   

Expected Life in Years

     1.0        1.0        1.0