Equity Incentive Program

6 Months Ended

Jun. 30, 2011

Equity Incentive Program [Abstract]

Equity Incentive Program

15. Equity Incentive Program

During the six months ended June 30, 2011, the Company issued stock appreciation rights (“SARs”) covering 1,524,329 shares and 44,751 performance shares. During the six months ended June 30, 2010, the Company issued SARs covering 2,306,440 shares and 68,446 performance shares.

The fair value of each SAR grant was estimated on the date of grant using the Black-Scholes option pricing model. The performance share awards are market condition awards and have been assessed at fair value on the date of grant using the Monte Carlo simulation model. The following assumptions were used in determining the fair value of the SARs and performance shares awarded during the respective periods:

	SARs						Performance Shares
	Six Months Ended June 30,						Six Months Ended June 30,
	2011			2010			2011			2010
Risk-free interest rate		2.68	%		2.77	%		1.34	%		1.37	%
Dividend yield		1.70	%		2.33	%		1.61	%		2.38	%
Expected life (years)		5.8			6.0			2.9			2.9
Volatility		33.56	%		31.93	%		40.48	%		39.98	%
Grant price	$	66.59		$	42.88			n/a			n/a
Fair value at date of grant	$	20.13		$	11.66		$	91.41		$	57.49

For the three months ended June 30, 2011 and 2010, after-tax stock-based compensation expense totaled $3,988 and $3,862, respectively. For the six months ended June 30, 2011 and 2010, after-tax stock-based compensation expense totaled $9,361 and $8,426, respectively. Stock-based compensation is reported within selling and administrative expenses in the accompanying Unaudited Condensed Consolidated Statement of Operations.