Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2012

Schedule of option-pricing model assumptions and weighted-average fair values

The fair value of stock option awards was estimated using the Black-Scholes option-pricing model with the following assumptions and weighted-average fair values as follows:

	December 31,
Stock Options:	2010	2011	2012

Weighted average grant date fair value of grants	$ 8.61	$ 9.98	$ 13.31
Risk-free interest rate⁽¹⁾	1.8%	1.8%	0.8%
Dividend yield⁽²⁾	2.6%	2.6%	2.7%
Expected volatility⁽³⁾	37.8%	38.4%	46.8%
Expected life in months⁽⁴⁾	69 months	63 months	58 months

⁽¹⁾	The risk-free interest rate is based upon the rate on a zero coupon U.S. Treasury bill, for periods within the contractual life of the option, in effect at the time of the grant.

⁽²⁾	The dividend yield is based on the average of historical stock prices and actual dividends paid.

⁽³⁾	Expected volatility is based on the historical volatility of the Company's stock price, over a period similar to the expected life of the option.

⁽⁴⁾	The expected term of the option is based on the historical employee exercise behavior, the vesting terms of the respective option, and a contractual life of either seven or ten years.

Schedule of option activity

Options under the plans as of December 31, 2012 and changes during the year ended December 31, 2012 were as follows:

	Shares (in thousands)			Weighted-average Exercise Price		Weighted- average Remaining Contractual Term (in years)		Aggregate Intrinsic Value (in thousands)

Options activity – service based
Outstanding at December 31, 2011		3,505.5		$	16.68
Granted		172.5			47.47
Exercised		(425.8	)		15.09
Forfeited/cancelled/expired		(17.0	)		12.23
Outstanding at December 31, 2012		3,235.2			18.55		2.95	$	61,819
Exercisable at December 31, 2012		2,477.3			16.95		2.49		49,850

Options activity – performance based
Outstanding at December 31, 2011		2,754.0		$	27.32
Granted		57.5			54.08
Exercised		(76.5	)		20.46
Forfeited/cancelled/expired		(8.0	)		30.43
Outstanding at December 31, 2012		2,727.0			28.06		4.28	$	25,483
Exercisable at December 31, 2012		1,261.3			24.32		3.54		16,062

Options activity – all options
Outstanding at December 31, 2011		6,259.5		$	21.36
Granted		230.0			49.12
Exercised		(502.3	)		15.90
Forfeited/cancelled/expired		(25.0	)		18.03
Outstanding at December 31, 2012		5,962.2			22.90		3.56	$	87,302
Exercisable at December 31, 2012		3,738.6			19.44		2.84		65,912

Schedule of cash proceeds, tax benefits, and intrinsic value related to total stock options exercised

Cash proceeds, tax benefits, and intrinsic value related to total stock options exercised during 2010, 2011 and 2012, were as follows (in millions):

	December 31,
	2010		2011		2012

Cash proceeds from stock options exercised	$	21.2	$	29.7	$	8.0
Tax benefit realized for stock options exercised		10.3		17.4		6.3
Intrinsic value of stock options exercised		25.4		61.6		10.6

Schedule of non-vested restricted stock awards and charges

Nonvested restricted stock awards as of December 31, 2012 and changes during the year ended December 31, 2012 were as follows:

	Number of Shares (in thousands)			Weighted-average Grant Date Fair Value

Nonvested at December 31, 2011		663.7		$	27.84

Granted		328.6			53.35
Vested		(259.5	)		26.71
Forfeited		(3.9	)		38.65

Nonvested at December 31, 2012		729.0			39.68