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Stock-Based Compensation
9 Months Ended
Sep. 30, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stock-Based Compensation
Stock-Based Compensation

We issue stock-based incentive awards to our eligible employees and Directors under the 2002 Employee Stock Incentive Plan and a Director Deferred Stock Ownership Plan. No further awards may be granted under the 1993 Employee Stock Incentive Plan and any remaining outstanding options under the 1993 Employee Stock Incentive Plan expired in the first quarter of 2013. The 2002 Employee Stock Incentive Plan permits the granting of nonqualified stock options, stock appreciation rights, performance stock, restricted stock and other stock-based awards.

Stock-based compensation for the periods ended September 30 is as follows:
(in millions)
Three Months
 
Nine Months
 
2013
 
2012
 
2013
 
2012
Stock option expense
$
4

 
$
2

 
$
10

 
$
9

Restricted stock and unit awards expense
22

 
21

 
63

 
54

Total stock-based compensation expense 1
$
26

 
$
23

 
$
73

 
$
63


1
Included in total stock-based compensation expense are amounts related to employees at the Company's corporate offices who transferred to MHE of $1 million and $3 million for the three and nine months ended September 30, 2012, respectively.

As of September 30, 2013 and December 31, 2012, we issued 5.3 million and 8.4 million common shares, respectively, upon exercise of certain stock options outstanding.