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Long-Term Incentive Employee Compensation (Tables)
 12 Months Ended
Dec. 31, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Long-Term Incentive Employee Compensation Costs
Long-term incentive employee compensation costs are primarily recorded within general and administrative expenses, and are reduced by an estimated forfeiture rate. These costs impacted our consolidated results of operations as follows:
 
2013

 
2012

 
2011

Share-based compensation expense, equity-based awards
$
13.3

 
$
12.9

 
$
23.3

Share-based compensation expense, liability-based awards
3.8

 
1.9

 
2.1

Total share-based compensation expense in operating income (loss)(a)
$
17.1

 
$
14.8

 
$
25.4

(a)
Share-based compensation expense incurred during 2013, 2012, and 2011 includes $0.2, $0.5 and $4.7, respectively, classified as a transformation cost in the Consolidated Statements of Operations related to the modification of equity awards. Also, included in 2011 is $8.3 of accelerated expense recognition primarily related to the retirement of Steven R. Loranger, our former Chairman, President and Chief Executive Officer.
Status of Stock Option and Restricted Stock Shares
A summary of the status of our NQOs as of December 31, 2013, 2012 and 2011 and changes during the years then ended is presented below.
 
2013
 
2012
 
2011
Stock Options
Shares

 
Weighted
Average
Exercise
Price

 
Shares

 
Weighted
Average
Exercise
Price

 
Shares

 
 
Weighted
Average
Exercise
Price

Outstanding – January 1
4.3

 
$
18.46

 
8.0

 
$
16.70

 
3.7

 
 
$
85.08

Granted
0.4

 
26.82

 
0.4

 
22.80

 
0.3

 
 
115.36

Exercised
(1.9
)
 
17.37

 
(3.8
)
 
15.35

 
(0.7
)
 
 
76.27

Cancelled or expired
(0.1
)
 
16.15

 
(0.3
)
 
17.21

 
(1.3
)
(b)  
 
92.76

Outstanding on Distribution Date before Equitable Adjustment
—

 
—

 
—

 
—

 
2.0

 
 
88.52

Outstanding on Distribution Date after Equitable Adjustment
—

 
—

 
—

 
—

 
8.0

 
 
16.18

November/December 2011 Activity:
 
 
 
 
 
 
 
 
 
 
 
 
Granted
—

 
—

 
—

 
—

 
0.7

 
 
20.28

Exercised
—

 
—

 
—

 
—

 
(0.7
)
 
 
13.87

Outstanding – December 31
2.7

 
$
20.46

 
4.3

 
$
18.46

 
8.0

 
 
$
16.70

Options exercisable – December 31
1.5

 
$
18.34

 
2.9

 
$
17.10

 
6.3

 
 
$
16.03

(b)
Includes 1.2 shares cancelled in connection with the Distribution of Exelis and Xylem, with a corresponding weighted average exercise price of $92.20.
Share-Based Compensation Summary of Stock Options
The following table summarizes information about ITT’s stock options at December 31, 2013:
 
Options Outstanding
 
Options Exercisable
Range of
Exercise
Prices
Number

 
Weighted
Average
Remaining
Contractual Life
(in years)
 
Weighted
Average
Exercise
Price

 
Aggregate
Intrinsic
Value

 
Number

 
Weighted
Average
Remaining
Contractual Life
(in years)

 
Weighted
Average
Exercise
Price

 
Aggregate
Intrinsic
Value

$12-$15
0.5

 
1.1
 
$
13.19

 
$
14.0

 
0.5

 
1.1

 
$
13.19

 
$
14.0

$15-$20
0.4

 
4.5
 
19.92

 
9.7

 
0.4

 
4.5

 
19.92

 
9.7

$20-$25
1.4

 
7.1
 
21.39

 
31.9

 
0.6

 
6.1

 
20.94

 
15.0

$25-$30
0.4

 
9.2
 
26.82

 
5.8

 
—

 
—

 
—

 
—

 
2.7

 
6.0
 
$
20.46

 
$
61.4

 
1.5

 
4.2

 
$
18.34

 
$
38.7
Weighted Average Assumptions
The following are weighted-average assumptions for 2013, 2012 and 2011:
 
2013

 
2012

 
November 7,
2011 Grants

 
2011
Grants Before
Distribution

Dividend yield
1.5
%
 
1.6
%
 
1.8
%
 
1.7
%
Expected volatility
29.9
%
 
34.1
%
 
39.3
%
 
24.7
%
Expected life (in years)
6.4

 
6.9

 
7.0

 
7.0

Risk-free rates
1.1
%
 
1.4
%
 
1.5
%
 
3.1
%
Weighted-average grant date fair value
$
6.62

 
$
6.71

 
$
6.97

 
$
29.70
Rollforward of Outstanding Restricted Stock
The table below provides a rollforward of outstanding RSUs, PSUs, and RSAs for each of the years ended December 31, 2013, 2012 and 2011.
 
2013
 
2012
 
2011
Restricted Stock and
Performance Units
Shares

 
Weighted
Average Grant
Date Fair Value

 
Shares

 
Weighted
Average Grant
Date Fair
Value

 
Shares

 
 
Weighted
Average
Grant Date
Fair Value

Outstanding – January 1
1.2

 
$
21.06

 
1.4

 
$
18.55

 
0.9

 
 
$
89.70

Granted
0.6

 
28.16

 
0.4

 
22.56

 
0.3

 
 
115.18

Lapsed
(0.4
)
 
20.25

 
(0.5
)
 
15.21

 
(0.3
)
 
 
99.53

Canceled
(0.1
)
 
22.68

 
(0.1
)
 
20.58

 
(0.6
)
(c)  
 
95.30

Outstanding on Distribution Date before equitable adjustment
—

 
—

 
—

 
—

 
0.3

 
 
93.42

Outstanding on Distribution Date after equitable adjustment
—

 
—

 
—

 
—

 
1.0

 
 
17.94

November/December 2011 Activity:
 
 
 
 
 
 
 
 
 
 
 
 
Granted
—

 
—

 
—

 
—

 
0.4

 
 
20.27

Outstanding – December 31
1.3

 
$
24.17

 
1.2

 
$
21.06

 
1.4

 
 
$
18.55

(c)
Includes a total of 0.5 RSUs and RSAs canceled in connection with the Distribution of Exelis and Xylem, with a corresponding weighted average grant date fair value of $95.14.
Number of Outstanding Equity Settled RSUs, Cash Settled RSUs and RSAs
The table below provides the number of the outstanding equity settled RSUs, PSU's, RSA's and cash settled RSUs as of December 31, 2013, 2012 and 2011.
 
2013

 
2012

 
2011

Equity settled RSUs
1.0

 
0.9

 
0.8

Cash settled RSUs
0.1

 
0.1

 
0.1

PSUs
0.2

 
—

 
—

RSAs
—

 
0.2

 
0.5