Share-Based Compensation

6 Months Ended

Mar. 31, 2014

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Note 6 – Share-Based Compensation

The Company grants share-based awards under the 2004 Employee and Director Equity-Based Compensation Plan (the “2004 Plan”), which provides long-term incentive compensation to employees and directors. The Company believes that such awards align the interests of its employees and directors with those of its shareholders.

The fair value of share-based payments is recognized as compensation expense in net income. For the three months ended March 31, 2014 and 2013, compensation expense charged to income was $25 million and $21 million, respectively. For the six months ended March 31, 2014 and 2013, compensation expense was $67 million and $58 million, respectively.

The amount of unrecognized compensation expense for all non-vested share-based awards as of March 31, 2014 was approximately $156 million, which is expected to be recognized over a weighted-average remaining life of approximately 2.2 years.

The fair values of stock appreciation rights granted during the annual share-based grants in November of 2013 and 2012, respectively, were estimated on the date of grant using a lattice-based binomial valuation model based on the following assumptions:


	2014			2013
Risk-free interest rate		2.31	%		1.33	%
Expected volatility		19.00	%		21.00	%
Expected dividend yield		2.00	%		2.60	%
Expected life		7.8 years			8.0 years
Fair value derived	$	19.90		$	12.08

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References+ Details