Stock-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2012

Summary of Share Based Payment Other than Options Valuation Assumptions

The assumptions used to estimate the weighted-average fair values of the market-vesting restricted stock awards in 2012 and 2011 were as follows:

	Six Months Ended June  30,
	2012	2011
Expected volatility of stock price	49%	48%
Risk-free interest rate	0.38% - 0.42%	0.97% - 1.21%
Valuation period	3 years	3-4 years
Dividend yield	0.0%	0.0%

Stock Based Compensation Activity

The activity related to the Company’s restricted stock units (“RSUs”) and stock option plans consisted of (in thousands of shares):

	RSUs					Options
	Number of RSUs			Weighted Average Grant Price		Number of Options			Weighted Average Exercise Price
Balance at January 1, 2012		2,998		$	12.74		3,432		$	7.90
Granted at fair market value		1,650			14.37		—			—
Vested/exercised (a)		(1,242	)		12.33		(526	)		0.79
Canceled		(19	)		13.06		(760	)		27.19
Balance at June 30, 2012 (b) (c)		3,387			13.58		2,146			2.81

^(a)  During the six months ended June 30, 2012, 615,000 market-vesting and performance-based RSUs vested. Stock options exercised during the six months ended June 30, 2012 had an intrinsic value of $7 million.

^(b)  As of June 30, 2012, the Company’s outstanding RSUs had an aggregate intrinsic value of $51 million; aggregate unrecognized compensation expense related to RSUs amounted to $31 million; and the balance of RSUs at June 30, 2012 consists of 1,442,000 related to time-based awards and 1,945,000 related to market-vesting and performance-based awards. Approximately 10,000 time-based RSUs are eligible to vest in 2012, if applicable service criteria are satisfied.

^(c)  As of June 30, 2012, the Company’s outstanding stock options had aggregate intrinsic value of $27 million; there were 2 million “in-the-money” stock options; and aggregate unrecognized compensation expense related to unvested stock options amounted to $1 million. Approximately 2 million stock options are exercisable as of June 30, 2012.

Summary of Share Based Compensation Shares Authorized under Stock Option Plans by Exercise Price Range

The table below summarizes information regarding the Company’s outstanding stock options as of June 30, 2012 (in thousands of shares):

Range of Exercise Prices	Weighted Average Contractual Life (years)		Number of Options
Less than $5.00		6.6		1,850
$5.01 to $10.00		—		—
$10.01 to $15.00		7.6		160
$15.01 to $20.00		0.7		122
$20.01 to $25.00		—		—
$25.01 to $30.00		0.7		5
$30.01 and above		2.3		9
		6.3		2,146