STOCK-BASED COMPENSATION

3 Months Ended

Mar. 31, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-based compensation granted includes stock options, performance stock awards, restricted stock awards and deferred directors’ compensation. Stock-based compensation expense was as follows:



	Three Months Ended March 31,
	2014			2013
	($ in millions)
Stock-based compensation	$	2.9		$	2.7
Mark-to-market adjustments	(0.9		)	1.8
Total expense	$	2.0		$	4.5

The fair value of each stock option granted, which typically vests ratably over three years, but not less than one year, was estimated on the date of grant, using the Black-Scholes option-pricing model with the following weighted-average assumptions:



Grant date	2014			2013
Dividend yield	3.13		%	3.44		%
Risk-free interest rate	2.13		%	1.35		%
Expected volatility	42		%	43		%
Expected life (years)	7.0			7.0
Grant fair value (per option)	$	8.30		$	7.05
Exercise price	$	25.57		$	23.28
Shares granted	589,000			621,000

Dividend yield for 2014 and 2013 was based on a historical average. Risk-free interest rate was based on zero coupon U.S. Treasury securities rates for the expected life of the options. Expected volatility was based on our historical stock price movements, as we believe that historical experience is the best available indicator of the expected volatility. Expected life of the option grant was based on historical exercise and cancellation patterns, as we believe that historical experience is the best estimate of future exercise patterns.

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

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