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Capital Stock
9 Months Ended
Sep. 30, 2013
Capital [Abstract]  
Capital Stock
Capital Stock
Use of Capital – Dividends and Stock Repurchase Program
We regularly review the appropriate use of capital, including common stock repurchases, repurchases of debt and dividends to shareholders. The declaration and payment of any dividends or repurchases of our common stock or debt securities are at the discretion of our Board of Directors and depend upon our financial condition, results of operations, future liquidity needs, regulatory and capital requirements and other factors deemed relevant by our Board of Directors.
A summary of the cash dividend activity for the nine months ended September 30, 2013 and 2012 is as follows: 
Declaration Date
 
Record Date
 
Payment Date
 
Cash
Dividend
per Share
 
Total
Nine Months Ended September 30, 2013
 
 
 
 
 
 
 
 
February 20, 2013
 
March 8, 2013
 
March 25, 2013
 
$
0.3750

 
$
113.4

May 15, 2013
 
June 10, 2013
 
June 25, 2013
 
0.3750

 
112.7

July 23, 2013
 
September 10, 2013
 
September 25, 2013
 
0.3750

 
111.4

 
 
 
 
 
 
 
 
 
Nine Months Ended September 30, 2012
 
 
 
 
 
 
 
 
January 24, 2012
 
March 9, 2012
 
March 23, 2012
 
$
0.2875

 
$
95.8

May 16, 2012
 
June 8, 2012
 
June 25, 2012
 
0.2875

 
93.5

July 24, 2012
 
September 10, 2012
 
September 25, 2012
 
0.2875

 
90.7


Under our Board of Directors’ authorization, we maintain a common stock repurchase program. On September 25, 2013, the Board of Directors authorized a $3,500.0 increase to the common stock repurchase program. Repurchases may be made from time to time at prevailing market prices, subject to certain restrictions on volume, pricing and timing. The repurchases are effected from time to time in the open market, through negotiated transactions, including options and accelerated share repurchase agreements, and through plans designed to comply with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended. Our common stock repurchase program is discretionary as we are under no obligation to repurchase shares. We repurchase shares under the program when we believe it is a prudent use of capital. The excess cost of repurchased shares over par value is charged on a pro rata basis to additional paid-in capital and retained earnings.
A summary of share repurchases for the period October 1, 2013 through October 10, 2013 (subsequent to September 30, 2013) and for the nine months ended September 30, 2013 and 2012 is as follows:
 
October 1, 2013
Through
October 10, 2013
 
Nine Months Ended 
 September 30
 
 
2013
 
2012
Shares repurchased
0.9

 
15.6

 
28.6

Average price per share
$
85.28

 
$
74.86

 
$
63.85

Aggregate cost
$
72.7

 
$
1,170.4

 
$
1,828.8

Authorization remaining at the end of each period
$
4,093.8

 
$
4,166.5

 
$
2,504.9


Stock Incentive Plans
A summary of stock option activity for the nine months ended September 30, 2013 is as follows:
 
Number of
Shares
 
Weighted-
Average
Option Price
per Share
 
Weighted-
Average
Remaining
Contractual
Life (Years)
 
Aggregate
Intrinsic
Value
Outstanding at January 1, 2013
17.8

 
$
64.67

 
 
 
 
Granted
2.0

 
62.37

 
 
 
 
Exercised
(6.2
)
 
60.28

 
 
 
 
Forfeited or expired
(1.3
)
 
70.88

 
 
 
 
Outstanding at September 30, 2013
12.3

 
$
65.85

 
3.4
 
$
217.5

Exercisable at September 30, 2013
9.7

 
$
66.54

 
2.8
 
$
166.5


A summary of the status of nonvested restricted stock activity, including restricted stock units, for the nine months ended September 30, 2013 is as follows:
 
Restricted
Stock Shares
and Units
 
Weighted-
Average
Grant Date
Fair Value
per Share
Nonvested at January 1, 2013
2.6

 
$
63.87

Granted
2.4

 
62.69

Vested
(0.4
)
 
59.64

Forfeited
(0.5
)
 
64.61

Nonvested at September 30, 2013
4.1

 
$
63.50


Fair Value
We use a binomial lattice valuation model to estimate the fair value of all stock options granted. For a more detailed discussion of our stock incentive plan fair value methodology, see Note 15, “Capital Stock,” to our audited consolidated financial statements as of and for the year ended December 31, 2012 included in our 2012 Annual Report on Form 10-K.
The following weighted-average assumptions were used to estimate the fair values of options granted during the nine months ended September 30, 2013 and 2012:
 
2013
 
2012
Risk-free interest rate
1.25
%
 
1.41
%
Volatility factor
35.00
%
 
34.00
%
Quarterly dividend yield
0.600
%
 
0.400
%
Weighted-average expected life (years)
4.0

 
4.1


The following weighted-average fair values were determined for the nine months ended September 30, 2013 and 2012: 
 
2013
 
2012
Options granted during the period
$
14.60

 
$
16.51