This excerpt taken from the AN DEF 14A filed Mar 27, 2008.
Stock Appreciation Rights
With respect to stock based stock appreciation rights (SARs), a grantee will not realize taxable income and the Company will not be entitled to a deduction with respect to such grant on the date of such grant. Upon the exercise of an SAR, the grantee will realize ordinary income equal to the fair market value of any shares received at the time of exercise. In general, the Company will receive an income tax deduction at the same time and in the same amount as the grantee recognizes ordinary income.