Stock-Based Compensation

9 Months Ended

Sep. 30, 2011

Share-based Compensation [Abstract]

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION

The following table summarizes the components of stock-based compensation expense:

	Three Months Ended
	September 30
(in Millions)	2011		2010
Stock-based compensation expense	$	13	$	9
Tax benefit	5		4
Stock-based compensation cost capitalized in property, plant and equipment	1		1

	Nine Months Ended
	September 30
(in Millions)	2011		2010
Stock-based compensation expense	$	42	$	38
Tax benefit	16		15
Stock-based compensation cost capitalized in property, plant and equipment	3		2

Stock Options

The following table summarizes our stock option activity for the nine months ended September 30, 2011:

	Number of Options		Weighted Average Exercise Price Per Share		(in Millions) Aggregate Intrinsic Value
Options outstanding at January 1, 2011	4,827,457		$	41.09
Granted	—		$	—
Exercised	(1,541,690	)	$	40.52
Forfeited or expired	(21,963	)	$	43.41
Options outstanding at September 30, 2011	3,263,804		$	41.34	$	26
Options exercisable at September 30, 2011	2,597,318		$	42.30	$	18

As of September 30, 2011, the weighted average remaining contractual life for the exercisable shares was 4.42 years. As of September 30, 2011, 666,486 options were non-vested. During the nine months ended September 30, 2011, 687,061 options vested.

The intrinsic value of options exercised for the nine months ended September 30, 2011 was $14 million. Total option expense recognized was $1 million and $3 million for the nine months ended September 30, 2011 and 2010, respectively.

Restricted Stock Awards

The following summarizes stock awards activity for the nine months ended September 30, 2011:

	Restricted Stock		Weighted Average Grant Date Fair Value Per Share
Balance at January 1, 2011	757,414		$	37.32
Grants	381,840		$	47.98
Forfeitures	(65,592	)	$	40.84
Vested and issued	(339,138	)	$	38.25
Balance at September 30, 2011	734,524		$	42.22

Performance Share Awards

The following summarizes performance share activity for the nine months ended September 30, 2011:

	Performance Shares
Balance at January 1, 2011	1,527,253
Grants	611,844
Forfeitures	(66,357	)
Payouts	(467,688	)
Balance at September 30, 2011	1,605,052

Unrecognized Compensation Cost

As of September 30, 2011, the Company had $56 million of total unrecognized compensation cost related to non-vested stock incentive plan arrangements. These costs are expected to be recognized over a weighted-average period of 1.27 years.