Stock-Based Compensation

3 Months Ended

Mar. 31, 2012

Share-based Compensation [Abstract]

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION

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

	Three Months Ended
	March 31
	2012		2011
	(In millions)
Stock-based compensation expense	$	17	$	18
Tax benefit	6		7
Stock-based compensation cost capitalized in property, plant and equipment	1		1

Stock Options

The following table summarizes our stock option activity for the three months ended March 31, 2012:

					(In millions)
	Number of Options		Weighted Average Exercise Price		Aggregate Intrinsic Value
Options outstanding at January 1, 2012	2,764,670		$	41.25
Granted	—		$	—
Exercised	(686,031	)	$	39.82
Forfeited or expired	(17,067	)	$	41.10
Options outstanding at March 31, 2012	2,061,572		$	41.73	$	26
Options exercisable at March 31, 2012	1,860,228		$	41.49	$	24

As of March 31, 2012, the weighted average remaining contractual life for the exercisable shares is 4.78 years. As of March 31, 2012, 201,344 options were non-vested. During the three months ended March 31, 2012, 332,026 options vested.

The intrinsic value of options exercised for the three months ended March 31, 2012 was $10 million. Total option expense recognized was $0.3 million and $0.5 million for the three months ended March 2012 and 2011, respectively.

Restricted Stock Awards

The following table summarizes the Company’s restricted stock awards activity for the three months ended March 31, 2012:

	Restricted Stock		Weighted Average Grant Date Fair Value
Balance at January 1, 2012	726,224		$	42.25
Grants	154,970		$	53.22
Forfeitures	(2,704	)	$	40.95
Vested and issued	(178,297	)	$	28.51
Balance at March 31, 2012	700,193		$	48.04

Performance Share Awards

The following table summarizes the Company’s performance share activity for the three months ended March 31, 2012:

	Performance Shares
Balance at January 1, 2012	1,608,733
Grants	537,866
Forfeitures	(12,438	)
Payouts	(504,755	)
Balance at March 31, 2012	1,629,406

Unrecognized Compensation Costs

As of March 31, 2012, there was $84 million of total unrecognized compensation cost related to non-vested stock incentive plan arrangements. That cost is expected to be recognized over a weighted-average period of 1.67 years.