14. Stock Based Compensation Plans

a. Stock Option Plans

The Company has options outstanding under four equity compensation plans. Under the Omnibus Equity Plan, the Company may grant options and other stock-based awards to employees and directors. Under the 1983 Stock Option Plan and the Stock Award Plan, the Company granted options to key management employees. Under the Stock Option Plan for Directors, the Company granted options to non-employee directors. Following adoption of the Omnibus Equity Plan by stockholders in 2008, no further grants may be made under the other plans. Options outstanding under the plans are issued at market value on the date of grant, vest on the third anniversary of the date of grant and must be exercised within ten years of the date of grant. If, upon termination of a participant's employment (other than a termination for cause), a participant is at least 55 years old, has at least 5 years of service, and the sum of the participant's age and years of service is at least 65, the participant may exercise any stock options granted in 2007 or later within a period of three years from the date of termination or, if earlier, the date such stock options otherwise would have expired, subject to specified conditions. A total of 10.5 million shares of the Company's Common Stock are authorized for issuance upon the exercise of stock options. Issuances of Common Stock to satisfy employee option exercises currently are made from treasury stock.

Stock option transactions for the three years ended December 31, 2011 were as follows:


	Options (In millions)			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term		Aggregate Intrinsic Value (In millions)
Outstanding at December 31, 2008		8.5		$	17.71
Granted		1.4			27.04
Exercised		(0.9	)		10.58
Cancelled		(0.1	)		25.03

Outstanding at December 31, 2009		8.9			19.85
Granted		1.2			33.34
Exercised		(1.2	)		12.79
Cancelled		(0.1	)		27.95

Outstanding at December 31, 2010		8.8			22.63
Granted		1.2			40.60
Exercised		(1.6	)		16.53
Cancelled		(0.1	)		30.22

Outstanding at December 31, 2011		8.3		$	26.39		6.2	$	160.1

Exercisable at December 31, 2011		4.6		$	20.68		4.4	$	114.3

The table below summarizes information relating to options outstanding and exercisable at December 31, 2011.


	Options Outstanding						Options Exercisable
(In millions) Range of Exercise Prices	Outstanding as of 12/31/2011		Weighted Average Remaining Contractual Life		Weighted Average Exercise Price		Exercisable as of 12/31/2011		Weighted Average Exercise Price
$5.00 - $15.00		0.9		1.9	$	13.17		0.9	$	13.17
$15.01 - $25.00		2.4		4.5	$	19.94		2.4	$	19.94
$25.01 - $35.00		3.8		7.3	$	29.24		1.2	$	27.72
$35.01 - $45.00		1.2		9.5	$	40.62		0.0	$	0.0

		8.3		6.2	$	26.39		4.6	$	20.68

The table above represents the Company's estimate of options fully vested and expected to vest. Expected forfeitures are not material and, therefore, are not reflected in the table above.

The following table provides information regarding the intrinsic value of stock options exercised, stock compensation expense related to stock option awards and the fair value of stock options issued:


(in millions)	2011		2010		2009
Intrinsic Value of Stock Options Exercised	$	39.6	$	25.5	$	16.4
Stock Compensation Expense Related to Stock Option Awards	$	10.0	$	10.9	$	11.8
Issued Stock Options		1.2		1.2		1.4
Weighted Average Fair Value of Stock Options issued (per share)	$	7.87	$	8.36	$	7.42
Fair Value of Stock Options Issued	$	9.5	$	10.2	$	10.5

The following table provides a summary of the assumptions used in the valuation of issued stock options:


	2011			2010			2009
Risk-free interest rate		2.0	%		2.7	%		3.2	%
Expected life in Years		6.2			6.5			6.4
Expected volatility		20.9	%		21.4	%		21.9	%
Dividend Yield		1.7	%		0.8	%		0.7	%

The fair value of stock options is based upon the Black Scholes option pricing model. The Company determined the options' life based on historical exercise behavior and determined the options' expected volatility and dividend yield based on the historical changes in stock price and dividend payments. The risk free interest rate is based on the yield of an applicable term Treasury instrument.

As of December 31, 2011, there was a fair value of $6.9 million related to unamortized stock option compensation expense, which is expected to be recognized over a weighted-average period of approximately one and a half years. The Company's Consolidated Statements of Cash Flow reflects an add back to Net Cash Provided by Operating Activities of $11.0 million and $11.8 million in 2011 and 2010, respectively, for non cash compensation expense, primarily stock option expense. Net Cash Used in Financing Activities includes $12.1, $7.3 and $5.0 million in 2011, 2010 and 2009, respectively, of excess tax benefits on stock option exercised. The total tax benefit for 2011, 2010 and 2009 was $13.3, $8.5 and $5.8 million, respectively.

b. Restricted Stock Plan

During 2005, the Company instituted a program under which officers who, during a specified period of time, accumulate shares of the Company's Common Stock or stock equivalents with a value of up to 50% of their annual incentive compensation, will be awarded restricted shares having a fair market value of 20% of the amount of stock and stock equivalents that an officer accumulates. The restricted shares vest on the third anniversary of the date of grant. During the three year vesting period, officers holding these shares will have voting rights and receive dividends either in cash or through reinvestment in additional shares.

Activity for the three years ended December 31, 2011 are as follows:


(In millions)	2011		2010		2009
Shares issued		0.0		0.0		0.0
Total value granted	$	0.8	$	0.3	$	0.3
Compensation expense	$	0.4	$	0.3	$	0.4