STOCK-BASED COMPENSATION

9 Months Ended

Sep. 30, 2014

NOTE 2. 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,
	2014		2013		2014		2013
Stock-based compensation cost	$	19.3	$	16.0	$	59.9	$	49.3
Tax benefit	$	6.2	$	5.9	$	19.0	$	17.9

During the first nine months of 2014, the Company granted 0.3 million employee stock options, which had a weighted average grant date fair value of $31.53 per share based on the Black-Scholes option-pricing model. The Company also granted 0.9 million shares of restricted stock in the first nine months of 2014, which had a weighted average grant date fair value of $79.62 per share and generally vest ratably over a four-year period. Additionally, the Company granted approximately 0.2 million shares of performance-based awards 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 $76.35 per share.

The following weighted average assumptions were used in determining the fair value for options granted in 2014:

Expected dividend yield	1.41%
Expected stock volatility	41.2%
Risk-free interest rate	2.30%
Expected holding period	7.2 years
Grant date fair value	$ 31.53

Unrecognized compensation expense at September 30, 2014 was $9.9 million and $96.2 million for stock options and unvested 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 $17.8 million of unrecognized compensation expense relating to the aforementioned non-market based performance-based awards, which is expected to be recognized over a weighted average period of 1.0 years.

The following tables summarize information relating to stock option exercises, restricted stock vesting and the delivery of performance-based awards:

	Nine Months Ended
	September 30,
Exercise of stock options:	2014		2013
Proceeds from stock option exercises	$	131.5	$	124.4
Aggregate intrinsic value	$	107.7	$	89.0
Tax benefit realized upon exercise	$	38.7	$	32.6
Number of shares exercised		2.8		3.5

	Nine Months Ended
	September 30,
Vesting of restricted stock:	2014		2013
Fair value of shares vested	$	92.3	$	54.0
Tax benefit realized upon vesting	$	31.6	$	19.2
Number of shares vested		1.2		1.1

	Nine Months Ended
	September 30,
Vesting of performance-based restricted stock:	2014		2013
Fair value of shares vested	$	38.0	$	25.5
Tax benefit realized upon vesting	$	14.6	$	9.7
Number of shares vested		0.5		0.5

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

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