Share-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2012

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

Compensation Expense for Company's Non-Qualified Stock Options, Non-Vested Stock Awards

The table below summarizes compensation expense for the Company’s non-qualified stock options based on the fair value method estimated using the Black-Scholes valuation model, and non-vested stock awards, including restricted stock units, and performance-based non-vested stock awards based on the fair value method for the years ended December 31, 2012, 2011 and 2010. The Company records compensation expense related to non-vested stock awards as a component of selling, general and administrative expense.



	Year Ended
(in millions)	Dec 31, 2012			Dec 31, 2011		Dec 31, 2010
Non-qualified stock option expense	$	4.9		$	4.8	$	4.2
Non-vested stock awards expense	1.7			2.8		4.2
Stock unit awards	4.5			3.1		0.9
Performance-based non-vested stock awards expense	1.4			1.0		—
Total pre-tax share-based compensation expense	$	12.5		$	11.7	$	9.3
Excess tax benefit (deficiency) on share-based compensation ⁽¹⁾	$	(0.6	)	$	1.0	$	(0.1	)


(1)	Cash inflows (outflows) recognized as financing and operating activities in the Company’s consolidated statement of cash flows

Schedule of Share-based Compensation, Stock Options, Activity

A summary of stock option activity for the year ended December 31, 2012 is as follows (options in thousands and aggregate intrinsic value in millions):



			Weighted Average		Weighted Average Remaining	Aggregate
	Options Outstanding		Exercise Price		Contractual Term	Intrinsic Value
Outstanding at December 31, 2011	1,553.4		$	32.92	6.8 years	$	4.7
Granted	353.0		32.50
Exercised	(14.0	)	7.53
Forfeited or Expired	(77.6	)	34.06
Outstanding as of December 31, 2012	1,814.8		$	32.99	5.9 years	$	9.5
Exercisable at December 31, 2012	1,260.1		$	32.80	4.7 years	$	8.9
Options expected to vest in the next twelve months	286.6		$	31.96	8.1 years	$	0.6

Schedule of Valuation Assumptions

The fair value of each option award is estimated on the date of grant using the Black-Scholes valuation model using the following weighted-average assumptions:



	Year Ended
	Dec 31, 2012			Dec 31, 2011			Dec 31, 2010
Risk-free interest rate ⁽¹⁾	1.0		%	2.4		%	2.3		%
Expected dividend yield ⁽²⁾	0			N/A			N/A
Expected option life ⁽³⁾	5.0 years			5.0 years			5.1 years
Expected stock price volatility ⁽⁴⁾	68.0		%	65.6		%	65.2		%
Weighted average fair value of options granted	$	18.20		$	24.11		$	13.91


(1)	Risk-free interest rate — This is the U.S. Treasury rate at the grant date having a term approximately equal to the expected life of the option. An increase in the risk-free interest rate will increase compensation expense.


(2)	Expected dividend yield — The Company has not made any dividend payments on common stock since 2002 and it does not have plans to pay dividends on common stock in the foreseeable future. Any dividends paid in the future will decrease compensation expense.


(3)	Expected option life — This is the period of time over which the options granted are expected to remain outstanding and is based on historical experience. Options granted have a maximum term of ten years. An increase in expected life will increase compensation expense.

(4)

Expected stock price volatility — This is a measure of the amount by which a price has fluctuated or is expected to fluctuate. The Company uses actual historical changes in the market value of the Company’s stock to calculate the volatility assumption as it is management’s belief that this is the best indicator of future volatility. An increase in the expected volatility will increase compensation expense.

Shares Authorized under Stock Option Plans, by Exercise Price Range

Additional information regarding options outstanding as of December 31, 2012 is as follows (options in thousands):



Range of Option Prices	Options Outstanding	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life	Options Exercisable	Weighted Average Exercise Price
$0 -$14	114.7	$	11.34	1.9	114.7	$	11.34
$14 - $28	840.2	$	21.72	5.6	719.5	$	21.05
$28 -$42	306.7	$	32.50	9.1	0.7	$	31.98
$42 - $56	284.0	$	45.20	6.7	156.0	$	47.11
$56 - $70	269.2	$	65.05	3.9	269.2	$	65.05

Schedule of Nonvested Restricted Stock Units Activity

A summary of all nonvested stock and restricted stock units activity for the year ended December 31, 2012, is as follows (shares in thousands):



	Shares Outstanding		Weighted Average Grant Date Fair Value
Balance, December 31, 2011	786.7		$	32.86
Granted	305.4		29.65
Vested	(166.0	)	42.30
Forfeited	(72.2	)	28.47
Balance, December 31, 2012	853.9		$	30.26

Schedule of Nonvested Share Activity

The weighted-average grant date fair value of all nonvested shares and restricted stock units granted, the total fair value (in millions) of all nonvested shares and restricted stock units granted, and the fair value (in millions) of all nonvested shares and restricted stock units that have vested during each of the past three years is as follows:



	Year Ended
	Dec 31, 2012		Dec 31, 2011		Dec 31, 2010
Weighted-average grant date fair value of nonvested shares granted	$	29.65	$	39.94	$	24.75
Fair value of nonvested shares granted	$	9.1	$	7.9	$	6.1
Fair value of shares vested	$	7.0	$	2.5	$	2.9

- Definition

Tabular disclosure of the allocation of equity-based compensation costs to a given line item on the balance sheet and income statement for the period. This may include the reporting line for the costs and the amount capitalized and expensed.

+ References+ Details

- Definition

Tabular disclosure of option exercise prices, by grouped ranges, including the upper and lower limits of the price range, the number of shares under option, weighted average exercise price and remaining contractual option terms.

+ References+ Details