Share-Based Compensation

3 Months Ended

Dec. 31, 2013

Share-Based Compensation [Abstract]

Share-Based Compensation

11.       SHARE-BASED COMPENSATION

We have various share-based compensation programs, which include stock options, deferred stock units, and restricted stock.Under all programs, the terms of the awards are fixed at the grant date. We issue shares from treasury stock upon the exercise of stock options, the payout of deferred stock units, and the issuance of restricted stock awards. As of 31 December 2013, there were 5,618,492 shares available for future grant under our Long-Term Incentive Plan, which is shareholder approved.

During the three months ended 31 December 2013, we granted 778,928 stock options at a weighted-average exercise price of $107.69 and an estimated fair value of $28.72 per option. The fair value of these options was estimated using a Black Scholes option valuation model that used the following assumptions:

Expected volatility	29.8%–30.3	%
Expected dividend yield	2.5	%
Expected life (in years)	7.4–8.4
Risk-free interest rate	2.3%–2.7	%

In addition, we granted 188,578 deferred stock units at a weighted-average grant-date fair value of $107.75and 12,649 restricted shares at a weighted-average grant-date fair value of $107.69.

Share-based compensation cost recognized in the consolidated income statement is summarized below:
	Three Months Ended 31 December		2013		2012
	Before-Tax Share-Based Compensation Cost	$	11.8	$	10.1
	Income tax benefit		(4.3)		(3.6)
	After-Tax Share-Based Compensation Cost	$	7.5	$	6.5

Before-tax share-based compensation cost is primarily included in selling and administrative expense on our consolidated income statements. The amount of share-based compensation cost capitalized in 2014 and 2013 was not material.