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Stock-Based Compensation Plans
 6 Months Ended
Jun. 30, 2012
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract]  
Stock-Based Compensation Plans
STOCK-BASED COMPENSATION PLANS
The Company’s operating results for the three and six months ended June 30, 2012 included long-term incentive plan expense of $5.3 and $10.5, respectively, compared to $4.8 and $8.6, respectively, for the same periods in 2011. Long-term incentive plan expense included expense related to discontinued operations $0.6 and $1.4 for the three and six months ended June 30, 2012, respectively, and $0.7 and $1.2 for the three and six months ended June 30, 2011, respectively. Long-term incentive plan expense includes: (a) incentive plan expense that is paid in cash based on relative shareholder return and (b) stock compensation expense. Stock compensation expense for the three and six months ended June 30, 2012 was $5.4 and $10.6, respectively, compared to $4.7 and $8.4 for the same periods in 2011.
Stock Options
A summary of stock option activity for the six months ended June 30, 2012 is presented below:
 
Shares in Millions Except Per Share Amounts
Shares
 
Weighted
Average
Exercise Price
 
Weighted
Average
Remaining
Contractual Term
(in years)
 
Weighted
Average
Fair Value at
Date of Grant
(per share)
Options outstanding at January 1, 2012
3.9

 
$
23.90

 
2.1

 
$
10.17

Options exercisable at January 1, 2012
3.2

 
$
25.97

 
0.7

 
$
9.15

Granted
0.7

 
12.79

 
9.6

 
3.43

Exercised
(0.5
)
 
11.69

 
 
 
 
Forfeited
(2.0
)
 
34.39

 
 
 
 
Options outstanding at June 30, 2012
2.1

 
$
12.74

 
5.7

 
$
4.20

Options exercisable at June 30, 2012
0.9

 
$
12.04

 
1.4

 
$
4.79


Approximately one-half of the stock options granted during 2012 vest in 2 years and the remaining vest in 3 years. The weighted average fair value at grant date of $3.43 per option granted included assumptions of a strike price of $12.79, a 30.74% implied volatility and an expected term of 4.5 years. These option grants resulted in stock compensation expense of $0.4 in the first six months of 2012.
Restricted Stock Awards
During the six months ended June 30, 2012 and 2011, the Company granted 1.5 shares and 1.4 shares, respectively, of restricted stock units. The weighted-average fair values of these grants were $12.93 and $13.78 per share, respectively. Included in these amounts were 0.6 shares and 0.5 shares, respectively, of performance-based restricted stock units granted at the fair value of $12.93 and $13.77 per share, respectively, equal to the Company’s share price at grant date, that vest upon the Company’s satisfaction of certain financial performance conditions. These grants provide for payout based upon the extent to which the Company achieves certain EBITDA targets, as determined by the Compensation and Benefits Committee of the Board of Directors, over a two-year period. Payout levels range from 50% to 200% of award shares earned. No payout can be earned if performance is below the minimum threshold level. Compensation cost related to these grants will be adjusted based upon expected performance as compared to defined targets.

The total compensation cost related to non-vested time-based and performance-based restricted stock units not yet recognized as of June 30, 2012 was approximately $14.6 and $6.3, respectively, which is expected to be recognized over a weighted average of 1.0 years and 0.7 years, respectively. Changes to non-vested time-based and performance-based restricted stock and restricted stock units for the six months ended June 30, 2012 were as follows:
Time-based Restricted Stock Units
     
Shares in Millions Except Per Share Amounts
Number of
Shares
 
Weighted
Average Fair
Value at Date
of Grant
Non-vested at December 31, 2011
2.1

 
$
11.72

Granted
0.9

 
12.93

Vested
(1.0
)
 
10.22

Forfeited
(0.2
)
 
13.01

Non-vested at June 30, 2012
1.8

 
$
12.93


Performance and Market-based Restricted Stock Units
     
Shares in Millions Except Per Share Amounts
Number of
Shares
 
Weighted
Average Fair
Value at Date
of Grant
Non-vested at December 31, 2011
1.8

 
$
10.31

Granted
0.6

 
12.93

Vested
(0.9
)
 
9.14

Forfeited
(0.3
)
 
10.41

Non-vested at June 30, 2012
1.2

 
$
12.67