Stock Transactions And Stock-Based Compensation (Tables)

9 Months Ended

Sep. 27, 2013

Assumptions Used In The Black-Scholes Model To Value Options Granted

The following summarizes the assumptions used in the Black-Scholes model to value options granted during the nine months ended September 27, 2013:



Risk-free interest rate	0.98 – 2.33%
Weighted average volatility	23.6%
Dividend yield	0.2%
Expected years until exercise	6.0 to 8.5

Components Of Stock-Based Compensation Program

The following table summarizes the components of the Company’s stock-based compensation program recorded as expense ($ in millions):



	Three Months Ended						Nine Months Ended
	September 27, 2013			September 28, 2012			September 27, 2013			September 28, 2012
RSUs and restricted shares:
Pre-tax compensation expense	$	17.6		$	16.0		$	49.9		$	43.2
Income tax benefit	(5.2		)	(4.9		)	(15.0		)	(14.1		)
RSU and restricted share expense, net of income taxes	$	12.4		$	11.1		$	34.9		$	29.1
Stock options:
Pre-tax compensation expense	$	12.0		$	13.0		$	35.8		$	36.2
Income tax benefit	(3.7		)	(4.0		)	(11.0		)	(11.0		)
Stock option expense, net of income taxes	$	8.3		$	9.0		$	24.8		$	25.2
Total stock-based compensation:
Pre-tax compensation expense	$	29.6		$	29.0		$	85.7		$	79.4
Income tax benefit	(8.9		)	(8.9		)	(26.0		)	(25.1		)
Total stock-based compensation expense, net of income taxes	$	20.7		$	20.1		$	59.7		$	54.3

Option Activity Under The Company's Stock Plans

Option activity under the Company’s stock plans as of September 27, 2013 and changes during the nine months then ended were as follows (in thousands, except exercise price and number of years):



	Options		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in Years)	Aggregate Intrinsic Value
Outstanding as of December 31, 2012	27,372		$	37.94
Granted	3,609		64.43
Exercised	(4,317	)	31.12
Cancelled/forfeited	(866	)	44.41
Outstanding as of September 27, 2013	25,798		$	42.57	6	$	704,366
Vested and Expected to Vest as of September 27, 2013 ⁽¹⁾	25,028		$	42.15	6	$	693,732
Vested as of September 27, 2013	13,732		$	34.99	4	$	479,041


(1)	The “Expected to Vest” options are the net unvested options that remain after applying the pre-vesting forfeiture rate assumption to total unvested options.

RSU And Restricted Shares Activity

The following table summarizes information on unvested RSUs and restricted shares activity during the nine months ended September 27, 2013:



	Number of RSUs/Restricted Shares (in thousands)		Weighted Average Grant-Date Fair Value
Unvested as of December 31, 2012	5,585		$	43.29
Granted	1,531		64.54
Vested	(1,332	)	37.63
Forfeited	(450	)	44.86
Unvested as of September 27, 2013	5,334		$	50.67

- 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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