XML 50 R52.htm IDEA: XBRL DOCUMENT v2.4.0.6
Incentive Compensation Plans (Tables)
 12 Months Ended
Dec. 31, 2012
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract]  
Schedule of Stock-based Compensation Expense
The amount of stock-based compensation expense as reflected in salaries and related expenses in our Consolidated Statement of Operations, and the related tax benefit, are listed below.
 
Years ended December 31,
 
2012
 
2011
 
2010
Stock options
$
5.4

 
$
6.7

 
$
7.4

Stock-settled awards
14.9

 
21.9

 
32.7

Cash-settled awards
3.9

 
5.7

 
10.9

Performance-based awards
24.5

 
23.3

 
11.0

Employee stock purchase plan
0.6

 
0.7

 
0.5

Other 1
1.1

 
4.1

 
4.3

Stock-based compensation expense
$
50.4

 
$
62.4

 
$
66.8

Tax benefit
$
19.7

 
$
22.1

 
$
22.1

 
1
Represents charges recorded for severance expense related to stock-based compensation awards.
Schedule of Stock Options Activity
The following tables are a summary of stock option activity during 2012.
 
 
Options
 
Weighted-
Average
Exercise Price
(per option)
 
Weighted-
Average
Remaining
Contractual Term
(in years)
 
Aggregate
Intrinsic
Value
Stock options outstanding as of January 1, 2012
 
18.1

 
$12.10
 
 
 
 
Granted
 
0.6

 
11.65

 
 
 
 
Exercised
 
(1.2
)
 
9.43

 
 
 
 
Cancelled/expired
 
(3.0
)
 
25.20

 
 
 
 
Forfeited
 
(0.4
)
 
4.93

 
 
 
 
Stock options outstanding as of December 31, 2012
 
14.1

 
9.76

 
4.5
 
$
27.6

Stock options vested and expected to vest as of December 31, 2012
 
13.4

 
9.92

 
4.4
 
$
24.4

Stock options exercisable as of December 31, 2012
 
10.2

 
10.89

 
3.6
 
$
9.9

 
 
 
 
 
 
 
 
 
 
 
Options
 
Weighted-
Average Grant
Date Fair Value
(per option)
 
Weighted-
Average
Remaining
Contractual Term
(in years)
 
Aggregate
Intrinsic
Value
Non-vested as of January 1, 2012
 
5.0

 
$
3.31

 
 
 
 
Granted
 
0.6

 
4.24

 
 
 
 
Vested
 
(1.3
)
 
3.94

 
 
 
 
Forfeited
 
(0.4
)
 
2.88

 
 
 
 
Non-vested as of December 31, 2012
 
3.9

 
3.29

 
7.0
 
$
18.0
Summary of Stock Options Assumptions
The fair value of each option grant has been estimated with the following weighted-average assumptions.
 
 
Years ended December 31,
 
 
2012
 
2011
 
2010
Expected volatility 1
 
43.8
%
 
39.9
%
 
42.2
%
Expected term (years) 2
 
6.8

 
6.7

 
6.5

Risk free interest rate 3
 
1.3
%
 
2.8
%
 
3.0
%
Expected dividend yield 4
 
2.1
%
 
1.9
%
 
0.0
%
 
1 
The expected volatility used to estimate the fair value of stock options awarded is based on a blend of: (i) historical volatility of our common stock for periods equal to the expected term of our stock options and (ii) implied volatility of tradable forward put and call options to purchase and sell shares of our common stock.
2 
The estimate of our expected term is based on the average of (i) an assumption that all outstanding options are exercised upon achieving their full vesting date and (ii) an assumption that all outstanding options will be exercised at the midpoint between the current date (i.e., the date awards have ratably vested through) and their full contractual term. In determining the estimate, we considered several factors, including the historical option exercise behavior of our employees and the terms and vesting periods of the options.
3 
The risk free rate is determined using the implied yield currently available for zero-coupon U.S. government issuers with a remaining term equal to the expected term of the options.
4 
The expected dividend yield is calculated based on an annualized dividend of $0.24 per share in 2012 and 2011. No dividend yield was assumed in 2010 because we did not pay cash dividends on our common stock during that year.
Stock-based Compensation, Grants in Period, Weighted Average Grant Date Fair Value
Stock-based compensation awards expected to be settled in cash have been classified as liabilities in our Consolidated Balance Sheets as of December 31, 2012 and 2011.
 
 
Years ended December 31,
 
 
2012
 
2011
 
2010
Stock-Settled Awards:
 
 
 
 
 
 
Awards granted
 
0.9

 
0.8

 
3.7

Weighted-average grant-date fair value (per award)
 
$
11.43

 
$
11.94

 
$
8.47

Total fair value of vested awards distributed
 
$
63.5

 
$
63.1

 
$
36.4

Cash-Settled Awards:
 
 
 
 
 
 
Awards granted
 
0.1

 
0.0
 
0.6

Weighted-average grant-date fair value (per award)
 
$
10.94

 
$
8.96

 
$
8.50

Total fair value of vested awards distributed
 
$
11.1

 
$
10.4

 
$
4.8

Performance-Based Awards:
 
 
 
 
 
 
Awards granted
 
1.8

 
1.8

 
0.1

Weighted-average grant-date fair value (per award)
 
$
10.61

 
$
11.58

 
$
11.02

Total fair value of vested awards distributed
 
$
11.5

 
$
30.8

 
$
4.6
Schedule of Nonvested Stock Activity
A summary of the activity of our non-vested stock-settled awards, cash-settled awards, and performance-based awards during 2012 is presented below (performance-based awards are shown at 100% of the shares originally granted).
 
 
Stock-Settled Awards
 
Cash-Settled Awards
 
Performance-Based Awards
 
 
Awards
 
Weighted-
Average
Grant-Date
Fair Value
(per award)
 
Awards
 
Weighted-
Average
Grant-Date
Fair Value
(per award)
 
Awards
 
Weighted-
Average
Grant-Date
Fair Value
(per award)
Non-vested as of January 1, 2012
 
9.2

 
$
6.41

 
1.6

 
$
5.85

 
2.0

 
$
10.84

Granted
 
0.9

 
11.43

 
0.1

 
10.94

 
1.8

 
10.61

Vested
 
(5.7
)
 
4.88

 
(1.0
)
 
4.62

 
(1.0
)
 
8.50

Forfeited
 
(0.6
)
 
8.16

 
(0.2
)
 
6.54

 
(0.1
)
 
11.62

Non-vested as of December 31, 2012
 
3.8

 
9.55

 
0.5

 
8.62

 
2.7

 
11.57

Total unrecognized compensation expense remaining
 
$
6.6

 
 
 
$
0.8

 
 
 
$
11.9

 
 
Weighted-average years expected to be recognized over
 
0.8

 
 
 
0.4

 
 
 
1.8