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Equity-Based Compensation
6 Months Ended
Jun. 30, 2011
Equity-Based Compensation Disclosure [Abstract]  
8. EQUITY-BASED COMPENSATION

8.  EQUITY-BASED COMPENSATION

 

Compensation expense recognized for equity-based plans is as follows (millions):

   Three Months Ended Six Months Ended
   6/30/11 6/30/10 6/30/11 6/30/10
              
 Restricted stock units           
  and performance stock units $ 33 $ 25 $ 102 $ 82
 Stock options   12   13   45   46
 Total impact on operating income $ 45 $ 38 $ 147 $ 128
              
 Tax benefit recognized $ 15 $ 15 $ 53 $ 49

For each of the six months ended June 30, 2011 and 2010, the Company granted approximately 5 million restricted stock units (“RSUs”) at a weighted-average grant date fair value per RSU of $36.09 and $27.04, respectively. For the six months ended June 30, 2011 and 2010, the Company granted approximately 0.1 million and 0.2 million target performance stock units (“PSUs”), respectively, at a weighted-average grant date fair value per target PSU of $45.89 and $30.65, respectively. Total unrecognized compensation cost related to unvested RSUs and target PSUs as of June 30, 2011, without taking into account expected forfeitures, is $234 million and is expected to be recognized over a weighted-average period between one and two years.

 

For the six months ended June 30, 2011 and 2010, the Company granted approximately 8 million and 10 million stock options, respectively, at a weighted-average grant date fair value per option of $9.02 and $6.35, respectively. Total unrecognized compensation cost related to unvested stock options as of June 30, 2011, without taking into account expected forfeitures, is $91 million and is expected to be recognized over a weighted-average period between one and two years. The table below presents the weighted-average values of the assumptions used to value the stock options at their grant date.

   Six Months Ended June 30,
   2011 2010
      
 Expected volatility 29.5% 29.5%
 Expected term to exercise from grant date 6.31 years 6.51 years
 Risk-free rate 2.8% 2.9%
 Expected dividend yield 2.6% 3.2%