Share-Based Compensation (Tables)

12 Months Ended

Sep. 30, 2012

Compensation Cost Relating to Share-Based Payments

The amounts and location of compensation cost relating to share-based payments included in consolidated statements of income is as follows:

	2012		2011		2010
Cost of products sold	$	17,864	$	14,440	$	15,128
Selling and administrative expense		59,201		49,536		54,423
Research and development expense		11,980		9,387		9,823
	$	89,045	$	73,363	$	79,374

Assumptions for Estimation of Fair Values of Stock Appreciation Rights Granted During Reporting Periods

The fair value was estimated on the date of grant using a lattice-based binomial option valuation model that uses the following weighted-average assumptions:

	2012	2011	2010
Risk-free interest rate	1.67%	2.40%	2.60%
Expected volatility	22.0%	24.0%	28.0%
Expected dividend yield	2.50%	2.14%	1.96%
Expected life	7.9 years	7.8 years	6.5 years
Fair value derived	$12.61	$16.80	$19.70

Summary of SARs Outstanding

A summary of SARs outstanding as of September 30, 2012 and changes during the year then ended is as follows:

	SARs			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value
Balance at October 1		9,027,037		$	72.14
Granted		1,431,558			72.12
Exercised		(351,857	)		65.28
Forfeited, canceled or expired		(324,726	)		75.42
Balance at September 30		9,782,012		$	72.28		6.52	$	68,123
Vested and expected to vest at September 30		9,418,066		$	72.23		6.46	$	66,275
Exercisable at September 30		6,142,551		$	71.56		5.55	$	49,643

Summary of Stock Options Outstanding

A summary of stock options outstanding as of September 30, 2012 and changes during the year then ended is as follows:

	Stock Options			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value
Balance at October 1		3,457,351		$	40.61
Exercised		(1,451,952	)		36.14
Forfeited, canceled or expired		(36,777	)		32.89
Balance at September 30		1,968,622		$	44.06		1.42	$	67,920
Vested at September 30		1,968,622		$	44.06		1.42	$	67,920
Exercisable at September 30		1,968,622		$	44.06		1.42	$	67,920

Summary of Performance-Based Restricted Stock Units Outstanding

A summary of performance-based restricted stock units outstanding as of September 30, 2012 and changes during the year then ended is as follows:

	Stock Units			Weighted Average Grant Date Fair Value
Balance at October 1		2,902,934		$	70.96
Granted		501,054			72.12
Distributed		(78,086	)		62.54
Forfeited or canceled		(1,140,514	)		63.84
Balance at September 30(A)		2,185,388		$	75.24
Expected to vest at September 30(B)		329,711		$	73.67

(A) Based on 200% of target payout.

(B) Net of expected forfeited units and units in excess of the expected performance payout of 131,872 and 1,723,805, respectively.

Summary of Time-Vested Restricted Stock Units Outstanding

A summary of time-vested restricted stock units outstanding as of September 30, 2012 and changes during the year then ended is as follows:

	Stock Units			Weighted Average Grant Date Fair Value
Balance at October 1		1,910,670		$	70.59
Granted		1,149,053			72.27
Distributed		(404,254	)		64.04
Forfeited or canceled		(265,341	)		68.00
Balance at September 30		2,390,128		$	72.79
Expected to vest at September 30		2,151,115		$	72.79