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Treasury Stock
6 Months Ended
Jun. 30, 2012
Treasury Stock Disclosure [Abstract]  
Treasury Stock
12. TREASURY STOCK
Stock Repurchase Programs
The Company’s Board of Directors authorized an ongoing stock repurchase program with a total repurchase authority granted to the Company of $3.4 billion, of which $400.0 million was approved in July 2012. The Company may use the approved dollar authority to repurchase stock at any time until the approved amount is exhausted. The objective of the Company’s stock repurchase program is to improve stockholders’ returns. At June 30, 2012, approximately $86.6 million was available to repurchase common stock pursuant to the stock repurchase program. All shares repurchased are recorded as treasury stock. A portion of the funds used to repurchase stock over the course of the program was provided by proceeds from employee stock option exercises and the related tax benefit.
The Company is authorized to make open market purchases of its common stock using general corporate funds. Additionally, from time to time, the Company may enter into structured stock repurchase arrangements with large financial institutions using general corporate funds in order to lower the average cost to acquire shares. These programs include terms that require the Company to make up-front payments to the counterparty financial institution and result in the receipt of stock during or at the end of the term of the agreement or the receipt of either stock or cash at the maturity of the agreement, depending on market conditions. As of June 30, 2012, the Company did not have any prepaid notional amounts outstanding under structured stock repurchase programs and it did not make any up-front payments to financial institutions related to structured stock repurchase agreements in 2012.
During the three months ended June 30, 2012, the Company did not make any open market purchases of its stock and during the six months ended June 30, 2012, the Company expended approximately $100.0 million on open market purchases, repurchasing 1,378,600 shares of outstanding common stock at an average price of $72.53.
During the three months ended June 30, 2011, the Company expended approximately $100.0 million on open market purchases, repurchasing 1,208,400 shares of outstanding common stock at an average price of $82.72. During the six months ended June 30, 2011, the Company expended approximately $199.9 million on open market purchases, repurchasing 2,660,500 shares of outstanding common stock at an average price of $75.14.
Shares for Tax Withholding
During the three months ended June 30, 2012, the Company withheld 12,821 shares from stock units that vested, totaling $1.0 million, to satisfy minimum tax withholding obligations that arose on the vesting of stock units. During the six months ended June 30, 2012, the Company withheld 195,871 shares from stock units that vested, totaling $15.1 million, to satisfy minimum tax withholding obligations that arose on the vesting of stock units. These shares are reflected as treasury stock in the Company’s condensed consolidated balance sheets and the related cash outlays do not reduce the Company’s total stock repurchase authority.
During the three months ended June 30, 2011, the Company withheld 39,145 shares from stock units that vested, totaling $3.3 million, to satisfy minimum tax withholding obligations that arose on the vesting of stock units. During the six months ended June 30, 2011, the Company withheld 163,740 shares from stock units that vested, totaling $12.1 million, to satisfy minimum tax withholding obligations that arose on the vesting of stock units. These shares are reflected as treasury stock in the Company’s condensed consolidated balance sheets and the related cash outlays do not reduce the Company’s total stock repurchase authority.