Share-Based Compensation

6 Months Ended

Jun. 30, 2011

Share-Based Compensation [Abstract]

Share-Based Compensation

Note 5. Share-Based Compensation

During the three and six months ended June 30, 2011 and 2010, the Company expensed share-based compensation awards under the Goodrich Equity Compensation Plan and the Goodrich Corporation 2008 Global Employee Stock Purchase Plan for employees and under the Outside Director Deferral and Outside Director Phantom Share plans for non-employee directors. A detailed description of the awards under these plans is included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2010.

The compensation cost recorded for share-based compensation plans during the three months ended June 30, 2011 and 2010 was $28.6 million and $15 million, respectively. The increase from 2010 to 2011 was primarily due to changes in the Company’s share price for the performance units and Outside Director Phantom Share Plan, changes in the expected return on invested capital (ROIC) as compared to a target ROIC for the performance units and by a higher grant date fair value for the restricted stock units and stock options.

The compensation cost recorded for share-based compensation plans during the six months ended June 30, 2011 and 2010 was $46.5 million and $33.2 million, respectively. The increase from 2010 to 2011 was primarily due to a higher grant date fair value for the restricted stock units and stock options, changes in the expected ROIC as compared to a target ROIC for the performance units and changes in the Company’s share price for the performance units and Outside Director Phantom Share Plan.