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Stock-Based Compensation (Tables)
12 Months Ended
Dec. 31, 2012
Stock-Based Compensation  
Schedule of stock-based compensation expense by type of award

 

 

 

Year Ended December 31,

 

(In millions, except per share data)

 

2012

 

2011

 

2010

 

Non-qualified stock options

 

$

4.5

 

$

4.1

 

$

3.9

 

Restricted stock, service based (“RSUs”)

 

6.5

 

5.0

 

4.9

 

Restricted stock, performance based (“PRSUs”)

 

4.6

 

4.7

 

3.5

 

Employee stock purchase plan

 

0.2

 

0.1

 

0.1

 

Stock-based compensation expense

 

$

15.8

 

$

13.9

 

$

12.4

 

 

 

 

 

 

 

 

 

Tax benefit from stock options exercised during the period

 

$

6.8

 

$

8.5

 

$

3.9

 

Summary of option activity

 

 

 

Number of
Options
(In millions)

 

Weighted-
Average
Exercise Price

 

Weighted-Average
Remaining
Contractual Life
(in years)

 

Outstanding at December 31, 2009

 

4.1

 

$

10.67

 

5.06

 

Options granted

 

0.9

 

$

10.92

 

 

 

Options exercised

 

(0.4

)

$

8.54

 

 

 

Options expired or forfeited

 

(0.1

)

$

14.68

 

 

 

Outstanding at December 31, 2010

 

4.5

 

$

10.84

 

5.16

 

Options granted

 

0.6

 

$

19.19

 

 

 

Options exercised

 

(1.6

)

$

8.17

 

 

 

Options expired or forfeited

 

(0.1

)

$

12.93

 

 

 

Outstanding at December 31, 2011

 

3.4

 

$

13.55

 

6.45

 

Options granted

 

0.5

 

$

25.03

 

 

 

Options exercised

 

(0.6

)

$

10.41

 

 

 

Options expired or forfeited

 

 

$

21.82

 

 

 

Outstanding at December 31, 2012

 

3.3

 

$

15.67

 

6.26

 

Schedule of other stock option statistics

 

 

 

Year Ended December 31,

 

(In millions, except weighted average exercise price)

 

2012

 

2011

 

Aggregate intrinsic value of outstanding options

 

$

37.4

 

$

38.0

 

Aggregate intrinsic value of exercisable options

 

$

29.5

 

$

21.9

 

Total intrinsic value of options exercised

 

$

9.1

 

$

22.7

 

Total number of options exercisable

 

2.2

 

2.1

 

Weighted average exercise price of options exercisable

 

$

13.57

 

$

13.38

 

Total unrecognized compensation cost on nonvested options (a)

 

$

2.1

 

$

2.1

 

 

 

(a)                   Unrecognized compensation cost relates to nonvested stock options and is expected to be recognized over the remaining vesting period ranging from one year to three years.

Summary of information about outstanding and exercisable stock options

 

 

 

Options Outstanding

 

Options Exercisable

 

Range of

Exercise Prices

 

Number of
Options
Outstanding (a)

 

Weighted
Average
Remaining
Life (in Years)

 

Weighted
Average
Exercise
Price

 

Number of
Options
Exercisable (a)

 

Weighted
Average
Exercise
Price

 

$

6.68 – 10.90

 

1.4

 

6.30

 

$

9.35

 

1.1

 

$

8.98

 

$

14.51 – 21.11

 

1.3

 

5.66

 

$

18.44

 

0.9

 

$

17.71

 

$

22.00 – 25.84

 

0.6

 

7.41

 

$

24.18

 

0.2

 

$

22.03

 

$

6.68 – 25.84

 

3.3

 

6.26

 

$

15.67

 

2.2

 

$

13.57

 

 

 

(a)         in millions

Schedule of assumptions used in determining the estimated the fair value of stock options

 

 

 

2012

 

2011

 

2010

 

Risk-free interest rate

 

0.83

%

1.88

%

2.40

%

Expected option life (in years) Executive

 

5.44

 

4.84

 

5.51

 

Expected option life (in years) Non-Executive

 

4.45

 

4.71

 

4.40

 

Dividend yield

 

%

%

%

Volatility

 

45.76

%

44.08

%

49.20

%

Weighted-average fair value per option granted

 

$

10.24

 

$

7.65

 

$

4.95

 

Summary of the company's service based RSU activity

 

 

 

Number of
RSUs
(In millions)

 

Weighted-
Average
Grant Date
Fair Value

 

Outstanding at December 31, 2009

 

0.9

 

$

12.21

 

RSUs granted

 

0.4

 

$

11.41

 

RSUs issued

 

(0.3

)

$

12.91

 

Outstanding at December 31, 2010

 

1.0

 

$

11.76

 

RSUs granted

 

0.3

 

$

20.63

 

RSUs issued

 

(0.4

)

$

12.51

 

Outstanding at December 31, 2011

 

0.9

 

$

14.49

 

RSUs granted

 

0.3

 

$

25.26

 

RSUs issued

 

(0.4

)

$

12.10

 

Outstanding at December 31, 2012

 

0.8

 

$

18.90

 

Summary of the company's PRSU activity

 

 

 

Number of
PRSUs
(In millions)

 

Weighted-
Average
Grant Date
Fair Value

 

Outstanding at December 31, 2009

 

0.5

 

$

11.18

 

PRSUs granted

 

0.3

 

$

10.95

 

PRSUs issued

 

(0.1

)

$

17.03

 

PRSUs forfeited

 

(0.1

)

$

7.37

 

Outstanding at December 31, 2010

 

0.6

 

$

9.77

 

PRSUs granted

 

0.1

 

$

19.02

 

Outstanding at December 31, 2011

 

0.7

 

$

11.53

 

PRSUs granted

 

0.1

 

$

25.03

 

PRSUs additional performance shares

 

0.2

 

$

8.00

 

PRSUs issued

 

(0.5

)

$

8.28

 

Outstanding at December 31, 2012

 

0.5

 

$

16.93