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Stock-Based Compensation (Tables)
9 Months Ended
Sep. 30, 2012
Fair Value of Options Granted Calculated Using Weighted Average Assumptions
The fair value of options granted during the three and nine month periods ended September 30, 2012 and 2011 were calculated using the following weighted-average assumptions:
 
 
Three Months Ended
 
Nine Months Ended
 
September 30,
2012
 
September 30,
2011
 
September 30,
2012
 
September 30,
2011
Options granted

 
50,000

 
46,950

 
108,550

Weighted average exercise price
$

 
$
48.70

 
$
41.27

 
$
48.26

Weighted-average grant date fair value

 
21.33

 
19.08

 
21.86

 
 
 
 
 
 
 
 
Assumptions:
 

 
 

 
 

 
 

Expected volatility

 
48.17
%
 
47.70
%
 
46.54
%
Expected term (in years)

 
5.0

 
5.9

 
5.6

Risk-free interest rate

 
1.90
%
 
1.43
%
 
2.30
%
Expected dividend yield

 

 

 

Summary of Activity Under Stock Option Plans
A summary of the activity under our stock option plans as of September 30, 2012 and changes during the three and nine month periods then ended, is presented below:

 
Options Outstanding
 
Weighted- Average Exercise Price Per Share
 
Weighted-Average Remaining Contractual Life in Years
 
Aggregate Intrinsic Value
Options outstanding at June 30, 2012
2,299,469

 
$
38.07

 
4.8
 
14,513,131

Options granted

 

 
 
 
 

Options exercised
(168,310
)
 
40.34

 
 
 
 

Options cancelled
(32,950
)
 
54.45

 
 
 
 

Options outstanding at September 30, 2012
2,098,209

 
38.74

 
4.6
 
15,874,392

Options exercisable at September 30, 2012
1,517,217

 
41.52

 
3.6
 
9,055,841

Options vested or expected to vest at September 30, 2012*
2,078,839

 
38.84

 
4.6
 
15,669,835

* In addition to the vested options, we expect a portion of the unvested options to vest at some point in the future.  Options expected to vest are calculated by applying an estimated forfeiture rate to the unvested options.
 
 
 
 
Options
Outstanding
 
Weighted-
Average
Exercise Price
Per Share
Options outstanding at December 31, 2011
2,401,809

 
$
37.54

Options granted
46,950

 
41.27

Options exercised
(284,801
)
 
39.99

Options cancelled
(65,749
)
 
43.31

Options outstanding at September 30, 2012
2,098,209

 
 

Performance-Based Restricted Stock
 
Restricted Stock Activities
 
Performance Based Restricted Stock Awards
Non-vested awards outstanding at December 31, 2011
101,730

Awards granted
22,120

Stock issued
(43,750
)
Awards forfeited
(6,642
)
Non-vested awards outstanding at September 30, 2012
73,458

Time Based Restricted Stock
 
Restricted Stock Activities
 
Time-Based Restricted Stock Awards
Non-vested awards outstanding at December 31, 2011
86,707

Awards granted
46,180

Stock issued
(13,020
)
Awards forfeited
(5,395
)
Non-vested awards outstanding at September 30, 2012
114,472

Deferred Stock Units
 
Restricted Stock Activities
 
Deferred Stock
Units
Non-vested awards outstanding at December 31, 2011
27,350

Awards granted
17,600

Stock issued
(14,800
)
Non-vested awards outstanding at September 30, 2012
30,150