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Stock-Based Compensation
 9 Months Ended
Sep. 30, 2012
Share-based Compensation [Abstract]  
Stock-Based Compensation
Stock-Based Compensation
Stock compensation expense totaled $1 million and $2 million for the quarters ended September 30, 2012 and 2011, respectively, and $6 million and $10 million for the nine months ended September 30, 2012 and 2011, respectively. Stock compensation expense relates primarily to the company's performance-based long-term incentive program ("LTIP") and time-vested restricted stock unit ("RSU") awards. LTIP awards cover three-year performance cycles and are measured partly on performance criteria (cumulative earnings per share and/or cumulative free cash flow generation) and partly on market criteria (total shareholder return relative to a peer group of companies).
Changes in capital surplus are primarily a result of stock compensation:
 
Quarter ended September 30,
 
Nine months ended September 30,
(In thousands)
2012
 
2011
 
2012
 
2011
Stock-based compensation
$
1,302

 
$
4,312

 
$
6,700

 
$
12,387

Shares withheld for taxes
(950
)
 
(1,616
)
 
(1,170
)
 
(1,707
)
Capital surplus increase
$
352

 
$
2,696

 
$
5,530

 
$
10,680


The fair value of LTIP awards containing performance criteria are based on the company's expectations of performance achievement and the closing stock price on the measurement date. The fair value of LTIP awards based on market criteria are measured using a Monte-Carlo simulation using publicly available data.