XML 57 R38.htm IDEA: XBRL DOCUMENT v3.3.1.900
EMPLOYEE STOCK BENEFIT PLANS (Tables)
 12 Months Ended
Dec. 31, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Schedule of assumptions used in the valuations of stock options
The following assumptions were used in the valuations:
 
 
2015
 
2014
 
2013
Expected volatility
 
24.7
%
 
26.3
%
 
27.0
%
Risk-free interest rate
 
1.5
%
 
1.7
%
 
0.9
%
Dividend yield
 
1.6
%
 
1.8
%
 
1.9
%
Expected life
 
4.9 years

 
5.5 years

 
5.3 years
Schedule of stock option activity
Stock option activities were as follows:
 
 
Shares
(in thousands)
 
Weighted
Average
Exercise
Price of
Shares
 
Average
Remaining
Contractual
Term
(in years)
 
Aggregate
Intrinsic
Value
(in millions)
Balance—January 1, 2013
1,902
 
$
52.11

 
7.7
 
$
99.2

Granted
485
 
74.76

 
 
 
 
Exercised
(377)
 
36.06

 
 
 
$
17.6

Forfeited or expired
(51)
 
73.57

 
 
 
 
Balance—December 31, 2013
1,959
 
60.12

 
7.4
 
$
46.3

Granted
463
 
82.31

 
 
 
 
Exercised
(652)
 
56.79

 
 
 
$
23.5

Forfeited or expired
(46)
 
72.55

 
 
 
 
Balance—December 31, 2014
1,724
 
67.01

 
7.3
 
$
57.8

Granted
431
 
102.47

 
 
 
 
Exercised
(272)
 
59.54

 
 
 
$
9.5

Forfeited or expired
(100)
 
84.74

 
 
 
 
Balance—December 31, 2015
1,783
 
75.73

 
7.0
 
$
16.6

Vested—December 31, 2015
1,010
 
63.53

 
5.8
 
$
16.1

Vested and expected to vest—December 31, 2015
1,767
 
$
75.54

 
7.0
 
$
16.6
Summary of performance share awards activity
Information related to performance share awards activity is summarized as follows:
Grant Year
 
Performance Cycle
Measurement Date
 
Shares Granted
and Earned
(in thousands)
 
Weighted-
Average Grant-
Date Fair
Value
 
Performance
Shares
Outstanding at
December 31, 2015 (in thousands)
2015
 
Annually on 12/31
 
148
 
$
100.99

 
0
2014
 
Annually on 12/31
 
157
 
$
78.65

 
124
2013
 
Annually on 12/31
 
176
 
$
72.24

 
67
 
Summary of restricted stock unit activity
A summary of restricted stock unit activity is as follows:
 
 
Shares
(in thousands)
 
Weighted-
Average Grant
Date Fair
Value
Nonvested restricted stock units—January 1, 2013
514

 
$
50.24

Granted
133

 
74.85

Vested (includes cash settled)
(189
)
 
39.14

Forfeited
(35
)
 
62.68

Nonvested restricted stock units—December 31, 2013
423

 
61.59

Granted
235

 
83.91

Vested (includes cash settled)
(153
)
 
44.36

Forfeited
(17
)
 
76.11

Nonvested restricted stock units—December 31, 2014
488

 
77.21

Granted
205

 
101.11

Vested (includes cash settled)
(149
)
 
69.55

Forfeited
(47
)
 
83.97

Nonvested restricted stock units—December 31, 2015
497

 
88.81
Summary of stock-based compensation expense by award type

—The following table summarizes stock-based compensation expense related to stock options, performance share awards and restricted stock units for the years ended December 31, 2015, 2014 and 2013:
 
Years Ended December 31,
(Dollars in millions)
2015
 
2014
 
2013
Stock options
$
7.6

 
$
7.0

 
$
6.5

Performance share awards
5.8

 
12.7

 
16.1

Restricted stock units
13.0

 
10.7

 
10.0

Total pre-tax stock-based compensation expense
$
26.4

 
$
30.4

 
$
32.6

Net tax benefit related to stock-based compensation expense
$
(8.8
)
 
$
(10.5
)
 
$
(11.4
)
Schedule of stock-based compensation expense recognized in the consolidated statements of earnings
Stock-based compensation expense was recognized in the consolidated statements of earnings as follows:
 
Years Ended December 31,
(Dollars in millions) 
2015
 
2014
 
2013
Cost of products sold
$
2.7

 
$
3.0

 
$
3.0

Selling, general and administrative
21.3

 
24.4

 
26.6

Research and development
2.4

 
3.0

 
3.0

Total stock-based compensation expense
$
26.4

 
$
30.4

 
$
32.6