Stock Plans

12 Months Ended

Dec. 31, 2011

Notes To Condensed Consolidated Financial Statements [Abstract]

Stock Plans [Text Block]

12. Stock Plans

Stock-based compensation expense was as follows:

	Years ended December 31,
	2011		2010		2009
Stock options	$	4,663	$	5,371	$	6,649
Restricted stock units		14,285		15,081		14,888
Employee stock purchase plans		-		-		224
Pre-tax stock-based compensation	$	18,948	$	20,452	$	21,761

The following table shows stock-based compensation expense as included in the Consolidated Statements of Income:
	Years ended December 31,
	2011		2010		2009
Cost of equipment sales	$	1,292	$	1,397	$	1,486
Cost of support services		557		602		640
Cost of business services		770		831		884
Selling, general and administrative		15,689		16,936		18,020
Research and development		640		686		731
Pre-tax stock-based compensation		18,948		20,452		21,761
Income tax		(6,170)		(7,265)		(7,458)
Stock-based compensation expense, net	$	12,778	$	13,187	$	14,303
Basic earnings per share impact	$	0.06	$	0.06	$	0.07
Diluted earnings per share impact	$	0.06	$	0.06	$	0.07

At December 31, 2011, $19 million of unrecognized compensation cost related to non-vested stock options and restricted stock units is expected to be recognized over a weighted-average period of 0.7years.

Stock Plans

Long-term incentive awards are provided to employees under the terms of our plans. The Executive Compensation Committee of the Board of Directors administers these plans. Awards granted under these plans may include stock options, restricted stock units, other stock-based awards, cash or any combination thereof.We settle employee stock compensation awards with treasury shares. Our stock-based compensation awards require a minimum requisite service period of one year for retirement eligible employees to vest.At December 31, 2011, there were 16,903,013 shares available for future grants under our stock plans.

Stock Options

Under our stock option plan, certain officers and employees are granted options at prices equal to the market value of our common shares at the date of grant. Options granted in 2008 generally become exercisable in four equal installments during the first four years following their grant and expire ten years from the date of grant. Options granted on or after 2009 generally become exercisable in three equal installments during the first three years following their grant and expire ten years from the date of grant.

The following tables summarize information about stock option activity during 2011:

	Shares	Per share weighted-average exercise price
Options outstanding at December 31, 2010	14,506,522	$37.38
Granted	1,312,910	$26.07
Exercised	(55,484)	$25.15
Cancelled	(1,266,537)	$37.61
Forfeited	(25,947)	$27.27
Options outstanding at December 31, 2011	14,471,464	$36.42
Options exercisable at December 31, 2011	11,478,630	$39.13

The options exercisable at December 31, 2011 had no intrinsic value.The intrinsic value of options exercised in 2011 was less than $1 million. No options were exercised during 2010 and 2009.

The following table summarizes information about stock options outstanding and exercisable at December 31, 2011:

	Options Outstanding			Options Exercisable
Range of per share exercise prices	Number	Per share weighted-average exercise price	Weighted-average remaining contractual life	Number	Per share weighted-average exercise price	Weighted-average remaining contractual life
$22.09 - $30.99	3,986,021	$24.23	8.0 years	1,370,704	$23.78	7.4 years
$31.00 - $36.99	3,207,738	$34.71	3.6 years	2,830,221	$34.42	3.3 years
$37.00 - $42.99	3,842,311	$41.12	2.4 years	3,842,311	$41.12	2.4 years
$43.00 - $48.03	3,435,394	$46.90	4.7 years	3,435,394	$46.90	3.7 years
	14,471,464	$36.42	4.5 years	11,478,630	$39.13	3.6 years

We estimate the fair value of stock options using a Black-Scholes valuation model. Key input assumptions used to estimate the fair value of stock options include the volatility of our stock, the risk-free interest rate and our dividend yield. Our estimates of stock volatility are based on historical price changes of our stock. The risk-free interest rate is based on U.S. treasuries with a term equal to the expected option term.The expected life, or holding period, of the award is based on historical experience.

We believe that the valuation technique and the approach utilized to develop the underlying assumptions are appropriate in estimating the fair value of our stock option grants. Estimates of fair value are not intended to predict actual future events or the value ultimately realized by employees who receive equity awards, and subsequent events are not indicative of the reasonableness of the original estimates of fair value.

The fair value of stock options granted and related assumptions are as follows:
	Years ended December 31,
	2011		2010		2009
Expected dividend yield		6.1%		6.1%		4.5%
Expected stock price volatility		26.1%		25.6%		21.4%
Risk-free interest rate		3.3%		3.2%		2.4%
Expected life – years		7.4		7.3		7.5
Weighted-average fair value per option granted		$3.45		$2.82		$3.04

Restricted Stock Units

Restricted stock units are granted to employees and entitle the holder to shares of common stock as the units vest, typically over a four year service period. The fair value of the units is determined on the grant date based on our stock price at that date less the present value of expected dividends. The following table summarizes information about restricted stock units during 2011:

	Units / Shares	Weighted-average grant date fair value
Restricted stock units outstanding at December 31, 2010	1,637,242	$25.55
Granted	662,049	$22.44
Vested	(543,688)	$26.89
Forfeited	(126,548)	$23.12
Restricted stock units outstanding at December 31, 2011	1,629,055	$22.33

The intrinsic value of restricted stock units outstanding at December 31, 2011 was $30 million. The intrinsic value of restricted stock units vested during 2011, 2010 and 2009was $13 million, $9 million and $5 million, respectively.

Employee Stock Purchase Plans (ESPP)

Substantially all U.S. and Canadian employees can purchase shares of our common stock at an offering price of 95% of the average price of our common stock on the New York Stock Exchange on the offering date.At no time will the exercise price be less than the lowest price permitted under Section 423 of the Internal Revenue Code. We may grant rights to purchase up to 5,108,794 common shares under the ESPP. We granted rights to purchase 258,667 shares, 318,556 shares and540,660 shares in 2011, 2010 and 2009, respectively.

Directors' Stock Plan

Under this plan, each non-employee director is granted 2,200 shares of restricted common stock annually. The shares carry full voting and dividend rights but, except as provided herein, may not be transferred or alienated until the later of (1) termination of service as a director, or, if earlier, the date of a change of control, or (2) the expiration of the six-month period following the grant of such shares. If a director terminates service as a director prior to the expiration of the six-month period following a grant of restricted stock, that award will be forfeited. The Directors' Stock Plan permits certain limited dispositions of restricted common stock to family members, family trusts or partnerships, as well as donations to charity after the expiration of the six-month holding period, provided the director retains a minimum of 7,500 shares of restricted common stock. We granted 22,000 shares to non-employee directors in 2011, and 26,400 shares in 2010 and 2009. Compensation expense, net of taxes, was less than $1 million in each of the years ended December 31, 2011, 2010 and 2009.