Share Plans (Tables)

12 Months Ended

Dec. 31, 2012

The following table summarizes stock option activity under all plans for the year ended December 31, 2012:


Options outstanding	Shares			Weighted- average exercise price		Weighted- average remaining contractual life		Aggregate intrinsic value
Beginning balance		7,837,696		$	32.50
Grants assumed in Merger		2,791,678			28.04
Granted		834,918			36.05
Exercised		(2,740,778	)		29.60
Forfeited		(83,994	)		32.64
Expired		(234,774	)		38.88


Ending balance		8,404,746		$	32.13		5.3	$	128,370,687


Options exercisable as of December 31, 2012		6,931,146		$	31.99		4.7	$	105,758,171
Options expected to vest as of December 31, 2012		1,422,898		$	32.92		8.1	$	21,763,738

Assumptions Used in Calculating Estimated Fair Value of Stock Option Award

We estimated the fair value of each stock option award on the date of grant using a Black-Scholes option pricing model, modified for dividends and using the following weighted average assumptions:


	December 31
	2012				2011		2010
	Assumed in Merger		Granted by Pentair plans		Granted by Pentair plans		Granted by Pentair plans
Risk-free interest rate		0.02 - 0.68%		0.96%		1.51%		2.45%
Expected dividend yield		2.12%		2.48%		2.32%		2.30%
Expected share price volatility		33.00%		36.50%		35.50%		35.00%
Expected term (years)		0.1 - 5.1		5.7		5.5		5.5

Restricted Share and Restricted Stock Award Activity

The following table summarizes restricted share and restricted stock activity under all plans for the year ended December 31, 2012:


Restricted shares and restricted stock units outstanding	Shares			Weighted average grant date fair value
Beginning balance		1,250,082		$	30.49
Grants assumed in Merger		978,756			38.85
Granted		863,310			41.56
Vested		(1,420,511	)		33.17
Forfeited		(78,359	)		37.22


Ending balance		1,593,278		$	38.97