Stock Compensation Plans

9 Months Ended

Sep. 30, 2011

Stock Compensation Plans [Abstract]

Stock Compensation Plans [Text Block]

STOCK COMPENSATION PLANS

As of September 30, 2011, the Company’s primary types of stock-based compensation were stock options and restricted stock. Stock-based compensation expense for the following periods was:

In millions	Three months ended September 30		Nine months ended September 30
	2011	2010	2011	2010
Stock options	$2	$2	$5	$4
Restricted stock	7	4	19	11
Total stock-based compensation (pre-tax)	9	6	24	15
Tax benefit	(2)	(2)	(7)	(5)
Total stock-based compensation (net of tax)	$7	$4	$17	$10

Stock-based compensation expense is recognized in the financial statements based upon fair value. Stock-based compensation expense was higher in the nine months ended September 30, 2011, as compared to the nine months ended September 30, 2010, due to changes in the quantity and value of awards granted.

The weighted average fair value of option grants was estimated based on the below weighted average assumptions and was $7.38 and $5.49 for the nine months ended September 30, 2011 and 2010, respectively. There were no stock options granted in the three months ended September 30, 2011.

	Three months ended September 30		Nine months ended September 30
	2011	2010	2011	2010
Dividend yield	—	—	—	—
Risk-free interest rate	—	1.60%	2.04%	2.31%
Expected volatility	—	43.8%	40.4%	46.9%
Expected holding period (years)	—	4.8	5.1	4.8

Expected volatility incorporates a blend of both historical volatility of the Company’s stock over a period equal to the expected term of the options and implied volatility from traded options on the Company’s stock, as management believes this is more representative of prospective trends. The Company uses historical data to estimate option exercise and employee terminations within the valuation model. The expected holding period represents the period of time that options are expected to be outstanding. The risk-free interest rate for periods within the contractual life of the option is based on the five-year U.S. Treasury yield curve in effect at the time of grant.

As of September 30, 2011, the total unrecognized compensation cost of $7 million related to unvested stock option grants is expected to be recognized over a weighted average period of approximately 1.9 years. As of September 30, 2011, the total unrecognized compensation cost of $54 million related to unvested restricted stock grants is expected to be recognized over a weighted average period of approximately 1.7 years.