STOCK-BASED COMPENSATION

9 Months Ended

Sep. 30, 2012

STOCK-BASED COMPENSATION

NOTE 3. STOCK-BASED COMPENSATION

Presented below is a summary of the stock-based compensation cost and associated tax benefit included in the accompanying consolidated statements of operations:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2012		2011		2012		2011
Stock-based compensation cost	$	16.4	$	12.9	$	46.3	$	43.2
Tax benefit	$	5.9	$	5.0	$	16.7	$	16.2

During the first nine months of 2012, the Company granted 0.5 million employee stock options, which had a weighted average grant date fair value of $15.19 per share based on the Black-Scholes option-pricing model. The Company also granted 1.3 million shares of restricted stock in the first nine months of 2012, which had a weighted average grant date fair value of $38.61 per share and generally vest ratably over a four-year period. Additionally, the Company granted approximately 0.3 million shares of restricted stock that contain a condition whereby the number of shares that ultimately vest are based on the achievement of certain non-market based performance metrics of the Company over a three-year period. The weighted average grant date fair value of these awards was $36.78 per share.

The following weighted average assumptions were used in determining the fair value for options granted in 2012:

Expected dividend yield		1.66	%
Expected stock volatility		44	%
Risk-free interest rate		1.55	%
Expected holding period		7.4 yrs
Grant date fair value	$	15.19

Unrecognized compensation expense at September 30, 2012 was $15.6 million and $66.2 million for stock options and nonvested restricted stock, respectively, which is expected to be recognized over a weighted average period of 1.3 years and 1.7 years, respectively. Additionally, there was $16.2 million of unrecognized compensation expense relating to the aforementioned non-market based performance awards which is expected to be recognized over a weighted average period of 0.9 years.

The following tables summarize information relating to stock option exercises and restricted stock vesting:

	Nine Months Ended
	September 30,
Stock option exercises:	2012		2011
Proceeds from stock option exercises	$	83.2	$	41.5
Aggregate intrinsic value	$	41.4	$	20.4
Tax benefit realized upon exercise	$	15.7	$	8.0

	Nine Months Ended
	September 30,
Restricted stock vesting:	2012		2011
Fair value of shares vested	$	37.7	$	18.8
Tax benefit realized upon vesting	$	13.3	$	7.0