STOCK-BASED COMPENSATION PLANS

The Company’s operating results for the three and nine months ended September 30, 2013 included long-term incentive plan expense of $3.3 and $10.7, respectively, compared to $5.3 and $15.8, respectively, for the same period in 2012. Long-term incentive plan expense includes expense related to discontinued operations of $1.4 in 2012 prior to completion of the sale of the Information Management business. Long-term incentive plan expense includes: (a) incentive plan expense that is paid in cash based on relative shareholder return and (b) stock compensation expense. Stock compensation expense for the three and nine months ended September 30, 2013 was $3.3 and $10.7, respectively, compared to $5.6 and $16.2, respectively, for the same period in 2012.

Stock Options

A summary of stock option activity for the nine months ended September 30, 2013 is presented below:



Shares in Millions Except Per Share Amounts	Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)	Weighted Average Fair Value at Date of Grant (per share)
Options outstanding at January 1, 2013	1.2		$	12.91	6.6	$	4.73
Options exercisable at January 1, 2013	0.3		$	11.86	0.8	$	3.99
Exercised	(0.3	)	12.22
Forfeited	(0.1	)	13.31
Options outstanding at September 30, 2013	0.8		$	13.12	7.9	$	3.74
Options exercisable at September 30, 2013	0.2		$	13.16	7.3	$	4.02

Stock compensation expense for the 2011 and 2012 stock option grants was $0.2 and $0.7, respectively, for the three and nine months ended September 30, 2013.

Restricted Stock Awards

During the nine months ended September 30, 2013 and 2012, the Company granted 1.1 shares and 1.5 shares, respectively, of restricted stock units. The weighted-average fair values of these grants were $16.35 and $12.97 per share, respectively. Included in these amounts were 0.4 shares and 0.6 shares, respectively, of performance-based restricted stock units granted at the fair value of $16.23 and $12.93 per share, respectively, equal to the Company’s share price at grant date, that vest upon the Company’s satisfaction of certain financial performance conditions.

The 2013 performance-based grants include 0.3 shares that provide for payout based upon the extent to which the Company achieves certain EPS targets, as determined by the Compensation and Benefits Committee of the Board of Directors, over a three-year period. Payout levels range from 50% to 200% of award shares earned. No payout can be earned if performance is below the minimum threshold level. As the targets for the second and third year have not yet been set, the key terms have not been effectively communicated to the recipients, and as such the expense related to these grants cannot be recognized until the key terms are established. These grants have been excluded from the table below. The remaining 0.1 of performance-based shares granted in 2013 vested immediately.

The 2012 performance-related grants provide for payout based upon the extent to which the Company achieves certain EBITDA targets, as determined by the Compensation and Benefits Committee of the Board of Directors for this award, over a two-year period. Payout levels range from 50% to 200% of award shares earned. No payout can be earned if performance is below the minimum threshold level. Compensation cost related to these 2012 grants is adjusted based upon expected performance as compared to defined targets.

The 2013 time-based grants are scheduled to vest 25% at the completion of year one after the grant date, 25% after year two and 50% after year three. The 2012 time-based grants are scheduled to vest 50% at the end of year two and 50% at the end of year three. The 2011 time-based grants vested 50% at the completion of year two after grant date with the remaining 50% scheduled to vest at the end of year three.

The total compensation cost related to non-vested time-based and performance-based restricted stock units not yet recognized as of September 30, 2013 was approximately $11.8 and $1.4, respectively, which is expected to be recognized over a weighted average of 1.0 years and 0.2 years, respectively. Changes to non-vested time-based and performance-based restricted stock and restricted stock units for the nine months ended September 30, 2013 were as follows:

Time-based Restricted Stock Units



Shares in Millions Except Per Share Amounts	Number of Shares		Weighted Average Fair Value at Date of Grant
Non-vested at December 31, 2012	1.6		$	13.04
Granted	0.6		16.35
Vested	(0.7	)	12.75
Forfeited	(0.1	)	14.01
Non-vested at September 30, 2013	1.4		$	14.62

Performance-based Restricted Stock Units



Shares in Millions Except Per Share Amounts	Number of Shares		Weighted Average Fair Value at Date of Grant
Non-vested at December 31, 2012	0.9		$	12.69
Granted	0.1		16.34
Vested	(0.7	)	13.22
Forfeited	—		—
Non-vested at September 30, 2013	0.3		$	12.90