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Long-Term Incentive Employee Compensation (Tables)
 12 Months Ended
Dec. 31, 2011
Long-Term Incentive Employee Compensation [Abstract]  
Long-term incentive employee compensation costs
                               
     2011(a)   2010   2009

Share-based compensation expense, equity-based awards

     $ 23       $ 14       $ 16  

Share-based compensation expense, liability-based awards

       2         (4 )       2  
                               

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

       25         10         18  

Tax benefit

       8         3         6  
                               

Share-based compensation expense, net of tax

     $ 17       $ 7       $ 12  
                               

 

(a) Share-based compensation expense incurred during 2011 includes $13 classified as a Transformation cost in the Consolidated Income Statement related to the modification of equity awards.
Status of stock option and restricted stock shares
    2011

 

   2010   2009
STOCK OPTIONS   SHARES   WEIGHTED-
AVERAGE
EXERCISE
PRICE		   SHARES   WEIGHTED-
AVERAGE
EXERCISE
PRICE		   SHARES   WEIGHTED-
AVERAGE
EXERCISE
PRICE

Outstanding – January 1

       3.7       $ 85.08         4.0       $ 80.58         4.1       $ 79.66  

Granted

       0.3         115.36         0.4         106.60         0.4         67.18  

Exercised

       (0.7 )       76.27         (0.6 )       62.90         (0.4 )       52.64  

Cancelled or expired(a)

       (1.3 )       92.76         (0.1 )       97.56         (0.1 )       91.88  
                                                             

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

       8.0       $ 16.70         3.7       $ 85.08         4.0       $ 80.58  
                                                             

Options exercisable – December 31

       6.3       $ 16.03         3.0       $ 83.72         3.2       $ 78.98  
                                                             

 

(a) 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
                                 
   

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

$5-$10

   0.2   (b)   $  9.46   $  2   0.2   (b)   $  9.46   $  2

$10-$15

   2.9   2.2   12.98   18   2.6   1.9   13.04   16

$15-$20

   3.3   1.9   18.21   5   3.0   1.2   18.02   5

$20-$26

   1.6   7.2   21.19   –   0.5   2.2   22.04   –
                                 
    8.0   3.0   $16.70   $25   6.3   1.6   $16.03   $23
                                 

 

(b) The contractual life of the 0.2 options ended on January 2, 2012.
Weighted average assumptions
                                         
     November 7,
2011 Grants		   2011
Grants Before
Distribution		   2010   2009

Dividend yield

       1.79 %       1.73 %       1.88 %       2.54 %

Expected volatility

       39.30 %       24.74 %       27.06 %       38.77 %

Expected life (in years)

       7.0         7.0         7.0         4.7  

Risk-free rates

       1.51 %       3.05 %       3.06 %       2.20 %

Weighted-average grant date fair value

     $ 6.97       $ 29.70       $ 29.00       $ 19.20  
                                         
Rollforward of outstanding restricted stock
                                                             
    2011   2010   2009
RESTRICTED STOCK   SHARES   WEIGHTED-
AVERAGE
GRANT DATE
FAIR VALUE		   SHARES   WEIGHTED-
AVERAGE
GRANT DATE
FAIR VALUE		   SHARES   WEIGHTED-
AVERAGE
GRANT DATE
FAIR VALUE

Outstanding – January 1

       0.9       $ 89.70         0.8       $ 88.72         0.7       $ 103.92  

Granted

       0.3         115.18         0.3         106.50         0.3         67.76  

Lapsed

       (0.3 )       99.53         (0.2 )       108.88         (0.2 )       105.66  

Cancelled(c)

       (0.6 )       95.30         –         89.50         –         109.88  
                                                             

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

       1.4       $ 18.55         0.9       $ 89.62         0.8       $ 88.72  
                                                             

 

(c) Includes 0.5 RS cancelled in connection with the Distribution of Exelis and Xylem, with a corresponding weighted average grant date fair value of $95.14.