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Equity Incentive Program (Tables)

3 Months Ended

Mar. 31, 2012

Assumptions used in determining fair value of stock appreciation rights and performance shares awarded during the period

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
	Three Months Ended March 31,						Three Months Ended March 31,
	2012			2011			2012			2011
Risk-free interest rate		1.05	%		2.68	%		0.37	%		1.34	%
Dividend yield		2.03	%		1.70	%		2.03	%		1.61	%
Expected life (years)		5.7			5.8			2.9			2.9
Volatility		36.41	%		33.56	%		34.10	%		40.48	%
Grant price	$	65.38		$	66.59			n/a			n/a
Fair value at date of grant	$	18.51		$	20.13		$	71.98		$	91.41

Stock-based incentive plans compensation expense

Stock-based compensation is reported within selling and administrative expenses in the accompanying Unaudited Condensed Consolidated Statement of Earnings. The following table summarizes the Company’s compensation expense relating to all stock-based incentive plans:

	Three Months Ended March 31,
	2012			2011
Pre-tax compensation expense	$	8,574		$	8,033
Tax benefit		(3,107	)		(2,811	)
Total stock-based compensation expense, net of tax	$	5,467		$	5,222

- Definition

Tabular disclosure of components of a stock option or other award plan under which equity-based compensation is awarded to employees, typically comprised of the amount of unearned compensation (deferred compensation cost), compensation expense, and changes in the quantity and fair value of the shares (or other type of equity) granted, exercised, forfeited, and issued and outstanding pertaining to that plan. Disclosure may also include nature and general terms of such arrangements that existed during the period and potential effects of those arrangements on shareholders, effect of compensation cost arising from equity-based payment arrangements on the income statement, method of estimating the fair value of the goods or services received, or the fair value of the equity instruments granted, during the period, cash flow effects resulting from equity-based payment arrangements and, for registrants that accelerate vesting of out of the money share options, reasons for the decision to accelerate.

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