Share-Based Compensation

9 Months Ended

Sep. 30, 2011

Share-Based Compensation [Abstract]

Share-Based Compensation

Note 6. Share-Based Compensation

During the three and nine months ended September 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 September 30, 2011 and 2010 was $30.9 million and $21 million, respectively. The increase from 2010 to 2011 was primarily due to increases in the Company’s share price for the performance units and Outside Director Phantom Share Plans and 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 nine months ended September 30, 2011 and 2010 was $77.4 million and $54.2 million, respectively. The increase from 2010 to 2011 was primarily due to increases in the Company’s share price for the performance units and Outside Director Phantom Share Plan and a higher grant date fair value for the restricted stock units and stock options.

The significant increase in the Company’s share price was primarily related to the Merger Agreement entered into by the Company with UTC. This increase in the share price resulted in approximately $15 million of additional compensation cost during the three and nine months ended September 30, 2011. The Company has updated its liability for its performance units utilizing its best estimate of the expected amounts to be paid out under the performance unit plans. See Note 1, “Goodrich Merger Agreement with United Technologies Corporation”.