SHARE-BASED COMPENSATION

6 Months Ended

Jun. 30, 2011

SHARE-BASED COMPENSATION

8.   SHARE-BASED COMPENSATION

The Company has two long-term incentive compensation plans. The first plan, which expired in February 2007, is a stock option plan which allowed grants for incentive stock options (ISOs) to employees and non-qualifying stock options (NQSOs) to employees and non-employee directors. Options granted before the plan’s expiration date remain outstanding in accordance with their terms. The second long-term incentive plan allows awards to Company employees for ISOs, NQSOs, restricted stock, restricted stock units, and stock appreciation rights. Non-employee directors are eligible for grants of NQSOs, restricted stock, and stock appreciation rights. As of June 30, 2011, approximately 15.2 million shares were available for future grants under this plan, and the only performance-based awards issued and outstanding were restricted stock awards.

Share-based awards granted to U.S.-based grantees are settled with authorized but unissued Company stock, while those issued to Japan-based grantees are settled with treasury shares.

The following table provides information on stock options outstanding and exercisable at June 30, 2011.

	Stock Option Shares (in thousands)	Weighted-Average   Remaining Term (in years)	Aggregate Intrinsic Value   (in millions)	Weighted-Average   Exercise Price Per Share
Outstanding	14,608	5.3	$97	$42.51
Exercisable	11,197	4.3	66	42.93

We received cash from the exercise of stock options in the amount of $13.0 million during the first six months of 2011, compared with $46 million in the first six months of 2010. The tax benefit realized as a result of stock option exercises and restricted stock releases was $11.9 million in the first six months of 2011, compared with $20 million in the first six months of 2010.

As of June 30, 2011, total compensation cost not yet recognized in our financial statements related to restricted-share-based awards was $32.4 million, of which $16.4 million (688 thousand shares) was related to restricted-share-based awards with a performance-based vesting condition. We expect to recognize these amounts over a weighted-average period of approximately 1.5 years. There are no other contractual terms covering restricted stock awards once vested.

For additional information on our long-term share-based compensation plans and the types of share-based awards, see Note 11 of the Notes to the Consolidated Financial Statements included in our annual report to shareholders for the year ended December 31, 2010.