5. Stock-Based Compensation

The Company has two share-based compensation plans under which a total of 5,265,000 shares may be issued under awards to key employees and non-employee directors.

The following table summarizes the impact of all stock-based compensation on the Company's consolidated statements of operations for the years ended December 31, 2011, 2010 and 2009.


*(in millions of dollars)*	2011		2010		2009
Advertising, selling, general and administrative expense	$	6.3	$	4.2	$	2.8
Restructuring charges		—		—		0.2

Operating income	$	6.3	$	4.2	$	3.0

There was no capitalization of stock based compensation expense.

Stock-based compensation by award type (including stock options, stock-settled appreciation rights ("SSARs"), restricted stock units ("RSUs") and performance stock units ("PSUs")) for the years ended December 31, 2011, 2010 and 2009 are as follows:


*(in millions of dollars)*	2011		2010		2009
Stock option compensation expense	$	0.6	$	0.4	$	0.8
SSAR compensation expense		0.2		0.2		0.2
RSU compensation expense		3.0		2.8		1.8
PSU compensation expense		2.5		0.8		0.2

Total stock-based compensation	$	6.3	$	4.2	$	3.0

Stock Options and SSAR Awards

The exercise price of each stock option and SSAR equals or exceeds the market price of the Company's stock on the date of grant. Options/SSARs can generally be exercised over a maximum term of up to seven years. Stock options/SSARs outstanding as of December 31, 2011 generally vest ratably over three years. During 2009, the Company granted only SSAR awards. There were no SSAR or option awards issued during 2010. During 2011, the Company granted only option awards. The fair value of each option/SSAR grant is estimated on the date of grant using the Black-Scholes option-pricing model using the weighted average assumptions as outlined in the following table:


	Year Ended December 31,
	2011			2009
Weighted average expected lives		4.5 years			4.5 years
Weighted average risk-free interest rate		1.65	%		2.1	%
Weighted average expected volatility		50.7	%		41.5	%
Expected dividend yield		0.0	%		0.0	%
Weighted average grant date fair value	$	3.85		$	0.24

The Company has utilized historical volatility for a pool of peer companies for a period of time that is comparable to the expected life of the option/SSAR to determine volatility assumptions. The risk-free interest rate assumption is based upon the average daily closing rates during the quarter for U.S. treasury notes that have a life which approximates the expected life of the option/SSAR. The dividend yield assumption is based on the Company's expectation of dividend payouts. The expected life of employee stock options/SSARs represents the weighted-average period the stock options/SSARs are expected to remain outstanding. The weighted average expected lives reflect the application of the simplified method.

A summary of the changes in stock options/SSARs outstanding under the Company's stock compensation plans during the year ended December 31, 2011 is presented below:


	Number Outstanding			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term		Aggregate Intrinsic Value
Outstanding at December 31, 2010		6,292,920		$	11.56
Granted		645,800		$	8.90
Exercised		(533,729	)	$	1.04
Lapsed		(296,535	)	$	11.05

Outstanding at December 31, 2011		6,108,456		$	12.23		2.8 years	$	16.2 million
Exercisable shares at December 31, 2011		4,686,445		$	14.57		2.4 years	$	8.9 million
Options/SSARs vested or expected to vest		5,988,270		$	12.40		2.7 years	$	15.5 million

The Company received cash of $0.1 million from the exercise of stock options for the year ended December 31, 2011 for which the aggregate intrinsic value of options exercised was $0.0 million. No stock options were exercised in 2010 and 2009. The aggregate intrinsic value of SSARs exercised during the years ended December 31, 2011, and 2010 totaled $3.0 million and $2.1 million, respectively. No SSARs were exercised in 2009. The fair value of options and SSARs vested during the years ended December 31, 2011, 2010 and 2009 was $0.6 million, $1.1 million and $1.7 million, respectively. As of December 31, 2011, the Company had unrecognized compensation expense related to stock options and SSARs of $1.9 million and $0.1 million, respectively. The unrecognized compensation expense related to stock options and SSARs will be recognized over a weighted-average period of 2.8 years and 0.6 years, respectively.

Stock Unit Awards

The ACCO Brands Corporation 2011 Amended and Restated Incentive Plan provides for stock based awards in the form of RSUs, PSUs, incentive and non-qualified stock options, and stock appreciation rights, any of which may be granted alone or with other types of awards and dividend equivalents. RSUs vest over a pre-determined period of time, generally three to four years from the date of grant. PSUs also vest over a pre-determined period of time, minimally three years, but are further subject to the achievement of certain business performance criteria in future periods. Based upon the level of achieved performance, the number of shares actually awarded can vary from 0% to 150% of the original grant.

There were 1,242,672 RSUs outstanding at December 31, 2011. All outstanding RSUs as of December 31, 2011 vest within four years of the date of grant. Also outstanding at December 31, 2011 were 1,153,520 PSUs. All outstanding PSUs as of December 31, 2011 vest at the end of their respective performance periods subject to achievement of the performance targets associated with such awards. Upon vesting, all of the remaining PSU awards will be converted into the right to receive one share of common stock of the Company for each unit that vests. The cost of these awards is determined using the fair value of the shares on the date of grant, and compensation expense is recognized over the period during which the employees provide the requisite service to the Company. The Company generally recognizes compensation expense for its PSU awards ratably over the performance period based on management's judgment of the likelihood that performance measures will be attained. The Company generally recognizes compensation expense for its RSU awards ratably over the service period. A summary of the changes in the stock unit awards outstanding under the Company's equity compensation plans during 2011 is presented below:


	Stock Units			Weighted Average Grant Date Fair Value
Unvested at December 31, 2010		1,136,158		$	14.41
Granted		1,624,316		$	8.73
Vested		(131,329	)	$	18.73
Forfeited and cancelled		(237,785	)	$	8.15

Unvested at December 31, 2011		2,391,360		$	8.80

The weighted-average grant date fair value of our stock unit awards was $8.73, $7.06, and $7.58 for the years ended December 31, 2011, 2010, and 2009, respectively. The fair value of stock unit awards that vested during the years ended December 31, 2011, 2010 and 2009 was $2.5 million, $1.3 million and $4.5 million, respectively. As of December 31, 2011, the Company had unrecognized compensation expense related to RSUs and PSUs of $4.9 million and $5.4 million, respectively. The unrecognized compensation expense related to RSUs and PSUs will be recognized over a weighted-average period of 3.0 years and 1.7 years, respectively. The Company will satisfy the requirement for delivering the common shares for stock-based plans by issuing new shares.