Stock-based Compensation (Tables)

12 Months Ended

Dec. 31, 2012

Summary of Performance Stock Units

The following table shows a summary of the performance stock units as of December 31, 2012:

Performance Period	Minimum Shares		Target Shares		Maximum Shares
2011 – 2012		0		84,342		126,513
2012 – 2014		0		100,031		150,047

Summary of Status and Activity of Non-Vested Stock Awards

The following table shows a summary of the status and activity of non-vested stock awards for the year ended December 31, 2012:

	Restricted Stock Units			Performance Stock Units			Total Stock Units			Weighted Average Grant Date Fair Value per Unit
Non-vested at January 1, 2012		156,665			297,715			454,380		$	26.43
Granted		67,012			104,598			171,610		$	38.35
Credited from dividends		3,779			7,072			10,851		$	35.67
Performance stock unit adjustment		0			(40,112	)		(40,112	)	$	10.68
Vested		(85,187	)		(87,013	)		(172,200	)	$	18.69
Forfeited		(6,171	)		(13,583	)		(19,754	)	$	36.00
Non-vested at December 31, 2012		136,098			268,677			404,775		$	36.11

Stock Options Fair Value Assumptions

In accordance with accounting standards, compensation expense for non-vested stock options is recorded over the vesting period based on the fair value at the date of grant. The fair value of stock options on the date of grant is calculated using the Black-Scholes-Merton model and the assumptions listed below:

	February 2012 Grant			February 2011 Grant			August 2010 Grant			February 2010 Grant
Grant date price per share of option award	$	38.21		$	40.26		$	20.00		$	28.10
Expected dividend yield per share		2.75	%		2.50	%		2.50	%		2.50	%
Expected life in years		6.5			6.5			6.5			6.5
Expected volatility		55.06	%		60.00	%		62.00	%		62.00	%
Risk-free interest rate		1.34	%		3.02	%		3.05	%		3.05	%
Grant date fair value per share of option awards	$	15.82		$	19.28		$	9.82		$	13.81

Summary of Status and Activity of Stock Options

The following table shows a summary of the status and activity of stock options for the year ended December 31, 2012:

	Options			Weighted Average Exercise Price per Option		Weighted Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value (in millions)
Outstanding at January 1, 2012		353,452		$	27.65
Granted		95,899		$	38.21
Exercised		(103,719	)	$	15.69
Expired		(2,413	)	$	39.99
Forfeited		(11,420	)	$	36.00
Outstanding at December 31, 2012		331,799		$	34.07		7.10	$	1.5
Exercisable at December 31, 2012		116,849		$	30.27		4.87	$	0.9

Schedule of Stock-Based Compensation Expense Recognized

Total stock-based compensation expense recognized for the three years ended December 31, 2012 is as follows:

	Year Ended December 31,
	2012		2011		2010
(Dollars in millions)
Stock-based compensation expense recognized:
Selling, general and administrative expenses	$	6.9	$	5.3	$	3.3
Less related income tax benefit		2.8		2.0		1.3
Decrease in net income attributable to Koppers	$	4.1	$	3.3	$	2.0