Share-Based Compensation

6 Months Ended

Mar. 31, 2013

Share-Based Compensation [Abstract]

Share-Based Compensation

12.       SHARE-BASED COMPENSATION

We have various share-based compensation programs, which include stock options, deferred stock units, and restricted stock.Under all programs, the terms of the awards are fixed at the grant date. We issue shares from treasury stock upon the exercise of stock options, the payout of deferred stock units, and the issuance of restricted stock awards. As of 31 March 2013, there were 6,577,502 shares available for future grant under our Long-Term Incentive Plan, which is shareholder approved.

During the six months ended 31 March 2013, we granted 1,131,315 stock options at a weighted-average exercise price of $81.58 and an estimated fair value of $19.85 per option. The fair value of these options was estimated using a Black Scholes option valuation model that used the following assumptions:

Expected volatility	28.6%–30.4	%
Expected dividend yield	2.4	%
Expected life (in years)	7.3–9.1
Risk-free interest rate	1.2%–1.5	%

In addition, we granted 259,170 deferred stock units at a weighted-average grant-date fair value of $82.15and 33,632 restricted shares at a weighted-average grant-date fair value of $81.57. Refer to Note 18, Share-Based Compensation, in our 2012 Form 10-K for information on the valuation and accounting for these programs.

Share-based compensation cost recognized in the consolidated income statement is summarized below:
			Three Months Ended				Six Months Ended
			31 March				31 March
			2013		2012		2013		2012
	Before-Tax Share-Based Compensation Cost	$	12.3	$	15.6	$	22.4	$	27.4
	Income tax benefit		(4.5)		(5.8)		(8.1)		(9.9)
	After-Tax Share-Based Compensation Cost	$	7.8	$	9.8	$	14.3	$	17.5

Before-tax share-based compensation cost is primarily included in selling and administrative expense on our consolidated income statements. The amount of share-based compensation cost capitalized in 2013 and 2012 was not material.