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## MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 

The Company and its subsidiaries are not party to any other material pending legal proceedings, other than routine litigation incidental to their businesses. 

## Note 17. Stockholders' Equity 

## Capital Stock 

The Company's authorized capital stock consists of 100 million shares of common stock, par value $0.10 per share, of which 34,350,186 shares and 34,949,620 shares were outstanding at December 31, 2013 and 2012, respectively, and 1,000,000 shares of preferred stock, none of which were issued and outstanding. 

On November 14, 2012, the Company’s Board of Directors approved a two -for-one stock split of the Company’s outstanding common stock in the form of a 100-percent stock distribution payable on December 11, 2012 to shareholders of record on November 27, 2012. The stock split resulted in an increase of 17.6 million shares of common stock outstanding. Treasury shares were not affected by the stock split. 

## Cash Dividends 

Cash dividends of $6.9 million or $0.20 per common share were paid during 2013. In January 2014, a cash dividend of approximately $1.7 million or $0.05 per share, was declared, payable in the first quarter of 2014. 

## Stock Award and Incentive Plan 

The Company has adopted its 2001 Stock Award and Incentive Plan (the “ Plan ” ), which provides for grants of incentive and non-qualified stock options, stock appreciation rights, stock awards or performance unit awards. The Plan is administered by the Compensation Committee of the Board of Directors. Stock options granted under the Plan have a term not in excess of ten years. The exercise price for stock options will not be less than the fair market value of the common stock on the date of the grant, and each award of stock options will vest ratably over a specified period, generally three years. 

The following table summarizes stock option and restricted stock activity for the Plan: 

<img src='content_image/167327.jpg'>

## Note 18. Comprehensive Income 

Comprehensive income includes changes in the fair value of certain financial derivative instruments that qualify for hedge accounting to the extent they are effective, the recognition of deferred pension costs, and cumulative foreign currency translation adjustments. 

