Stock-Based Compensation And Other Incentive Plans

9 Months Ended

Sep. 30, 2011

Stock-Based Compensation and Other Incentive Plans [Abstract]

Stock-Based Compensation And Other Incentive Plans

11. Stock-Based Compensation and Other Incentive Plans

     During the nine months ended September 30, 2011, the Company granted options to purchase approximately 0.7 million shares of common stock with a weighted average exercise price of $32.18 per share and a weighted average grant-date fair value of $14.18 per share. The options' fair value was determined using the Black-Scholes option pricing model, using a weighted average risk-free rate of 1.92%, a weighted average dividend yield of 1.25% and a weighted average volatility of 57.43%. The options' expected life is 4.5 years and the options vest ratably over three years. The options provide for the continuation of vesting after retirement for recipients that meet certain criteria. The expense for these options will be recognized through the date that the employee first becomes eligible to retire and is no longer required to provide service to earn all or part of the award. The Company also granted 130,950 shares of restricted stock during the nine months ended September 30, 2011 at a weighted average grant-date fair value of $31.30 per share. The restricted stock vests after three years.

     The Company has a long-term incentive program ("LTI plan") that allows for the award of performance units. The total number of units earned by a participant is based on financial and operational performance measures, and may be paid out in cash or in shares of the Company's common stock. The Company recognizes compensation expense over the three-year term of the grant. Amounts unpaid for all grants under the LTI plan totaled $10.0 million and $6.4 million as of September 30, 2011 and December 31, 2010, respectively.

     The Company recognized compensation expense from all stock-based and LTI plans of $3.4 million for the three months ended September 30, 2011 and 2010, respectively. The Company recognized compensation expense from all stock-based and LTI plans of $12.6 million and $12.3 million for the nine months ended September 30, 2011 and 2010, respectively. These expenses are primarily included in selling, general and administrative expenses in the accompanying condensed consolidated statements of income.