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9. Share-based Compensation (Tables)
 12 Months Ended
Dec. 31, 2013
Share-based Compensation [Abstract]  
Stock Options Activity

Stock Options
The following table summarizes stock option activity:

 
 
Shares
 
Weighted-
Average
Exercise Price
 
Weighted-
Average
Remaining
Contractual
Term (in years)
 
Aggregate
Intrinsic
Value
(in millions)
Outstanding, January 1, 2011
 
1,057,819

 
$
57.12

 
 
 
 
Granted
 
58,500

 
$
99.49

 
 
 
 
Exercised
 
(220,372
)
 
$
42.44

 
 
 
 
Forfeited/expired
 
(7,197
)
 
$
62.98

 
 
 
 
Outstanding, December 31, 2011
 
888,750

 
$
63.50

 
 
 
 
Granted
 
55,250

 
$
107.32

 
 
 
 
Exercised
 
(181,707
)
 
$
44.66

 
 
 
 
Forfeited/expired
 
(15,000
)
 
$
87.78

 
 
 
 
Outstanding, December 31, 2012
 
747,293

 
$
70.83

 
 
 
 
Granted
 
55,050

 
$
117.67

 
 
 
 
Exercised
 
(159,450
)
 
$
54.16

 
 
 
 
Forfeited/expired
 
(13,250
)
 
$
91.32

 
 
 
 
Outstanding, December 31, 2013
 
629,643

 
$
78.72

 
4.53
 
$
28.3

Vested and expected to vest,
 
 
 
 
 
 
 
 
December 31, 2013
 
612,946

 
$
77.91

 
4.41
 
$
28.0

Exercisable, December 31, 2013
 
472,193

 
$
70.14

 
3.23
 
$
25.2
Stock Options Outstanding

The following summarizes information about stock options outstanding at December 31, 2013:

 
 
Options Outstanding
 
Options Exercisable
Range of
Exercise Prices
 
Number
Outstanding
 
Weighted-Average
Remaining
Contractual Term
(in years)
 
Weighted -Average
Exercise
Price
 
Number
Exercisable
 
Weighted -
Average
Exercise Price
$ 53.75 - $ 62.47
 
191,930

 
1.41
 
$
58.40

 
191,930

 
$
58.40

$ 63.00 - $ 75.38
 
178,413

 
3.53
 
$
69.87

 
168,313

 
$
69.56

$ 84.57 - $107.32
 
204,250

 
6.93
 
$
95.03

 
111,950

 
$
91.11

$117.00 - $122.36
 
55,050

 
9.71
 
$
117.67

 
—

 
$
—

Totals
 
629,643

 
 
 
 
 
472,193

 
 
Stock Options Valuation Assumptions

The weighted-average fair value of stock options granted was estimated using a Black-Scholes option-pricing model with the following weighted-average assumptions:

 
 
Year Ended December 31,
 
 
2013
 
2012
 
2011
Expected volatility
 
28
%
 
30
%
 
32
%
Risk-free interest rate
 
2.65
%
 
1.53
%
 
1.71
%
Expected life (in years)
 
8.9

 
9.0

 
8.6

Expected dividend
 
—

 
—

 
—

Weighted-average fair value of options granted
 
$
47.25

 
$
41.82

 
$
40.81
Resticted Stock Activity

The following table summarizes restricted stock activity:

 
 
Year Ended December 31,
 
 
2013
 
2012
 
2011
 
 
Restricted
Stock
Shares
 
Weighted-
Average
Grant-Date
Fair Value
 
Restricted
Stock
Shares
 
Weighted-
Average
Grant-Date
Fair Value
 
Restricted
Stock
Shares
 
Weighted-
Average
Grant-Date
Fair Value
Nonvested shares, at
 
 

 
 

 
 

 
 

 
 

 
 

  beginning of year
 
12,957

 
$
88.09

 
39,629

 
$
84.07

 
68,893

 
$
83.21

Vested
 
(12,610
)
 
$
88.09

 
(25,124
)
 
$
81.98

 
(26,179
)
 
$
81.98

Cancelled/forfeited
 
(347
)
 
$
88.00

 
(1,548
)
 
$
84.20

 
(3,085
)
 
$
82.63

Nonvested shares, at
 
 
 
 
 
 
 
 

 
 
 
 
end of year
 
—

 
$
—

 
12,957

 
$
88.09

 
39,629

 
$
84.07
Schedule of Share-based Compensation, Restricted Stock Units Award Activity

The following table summarizes restricted stock unit activity:
 
 
Restricted
Stock
Units
 
Weighted-
Average
Grant-Date
Fair Value
 
Weighted-Average
Remaining
Contractual Term
(in years)
 
Aggregate
Intrinsic Value
as of
December 31, 2013
(in millions)
Outstanding, January 1, 2011
 
242,222

 
$
80.61

 
 
 
 
Granted
 
127,920

 
$
98.25

 
 
 
 
Vested
 
(54,350
)
 
$
79.67

 
 
 
 
Forfeited
 
(16,430
)
 
$
80.70

 
 
 
 
Outstanding, December 31, 2011
 
299,362

 
$
88.31

 
 
 
 
Granted
 
138,840

 
$
107.32

 
 
 
 
Vested
 
(75,466
)
 
$
85.52

 
 
 
 
Forfeited
 
(14,235
)

$
89.31

 
 
 
 
Outstanding, December 31, 2012
 
348,501

 
$
96.45

 
 
 
 
Granted
 
144,445

 
$
117.09

 
 
 
 
Vested
 
(92,273
)
 
$
92.26

 
 
 
 
Forfeited
 
(25,243
)

$
96.08

 
 
 
 
Outstanding, December 31, 2013
 
375,430

 
$
105.44

 
2.13
 
$
46.4
Employee Stock Purchase Plan, Valuation Assumptions
The fair value of the employees’ purchase rights under the 2011 ESPP and the 1988 ESPP was estimated using a Black-Scholes model with the following weighted-average assumptions:

 
Year Ended December 31,
 
2013
 
 
 
2012
 
 
 
2011
Expected volatility
19
%
 
 
 
27
%
 
 
 
20
%
Risk-free interest rate
0.05
%
 
 
 
0.07
%
 
 
 
0.06
%
Expected life (in years)
0.25

 
 
 
0.25

 
 
 
0.25

Expected dividend
—

 
 
 
—

 
 
 
—

Weighted-average fair value
 
 
 
 
 
 
 
 
 
of purchase rights
$
21.76

 
 
 
$
20.70

 
 
 
$
20.35