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Stock-Based Compensation
 6 Months Ended
Jun. 30, 2012
Share-based Compensation [Abstract]  
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION

The following table summarizes the components of stock-based compensation (in millions):
 
Three Months Ended
 
Six Months Ended
 
June 30
 
June 30
 
2012
 
2011
 
2012
 
2011
Stock-based compensation expense
$
23

 
$
11

 
$
40

 
$
29

Tax benefit
9

 
4

 
15

 
11

Stock-based compensation cost capitalized in property, plant and equipment
1

 
1

 
2

 
2



Stock Options

The following table summarizes our stock option activity for the six months ended June 30, 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
(1,119,489
)
 
$
40.36

 
 
Forfeited or expired
(16,114
)
 
$
41.93

 
 
Options outstanding at June 30, 2012
1,629,067

 
$
41.86

 
$
24

Options exercisable at June 30, 2012
1,427,723

 
$
41.56

 
$
21



As of June 30, 2012, the weighted average remaining contractual life for the exercisable shares is 4.58 years. As of June 30, 2012, 201,344 options were non-vested. During the six months ended June 30, 2012, 332,026 options vested.

The intrinsic value of options exercised for the six months ended June 30, 2012 was $17 million. Total option expense recognized was $0.5 million and $1 million for the six months ended June 30, 2012 and 2011, respectively.

Restricted Stock Awards

The following table summarizes the Company’s restricted stock awards activity for the six months ended June 30, 2012:

 
Restricted
Stock
 
Weighted Average
Grant Date
Fair Value
Balance at January 1, 2012
726,224

 
$
42.25

Grants
156,470

 
$
53.26

Forfeitures
(4,904
)
 
$
43.78

Vested and issued
(241,508
)
 
$
33.64

Balance at June 30, 2012
636,282

 
$
48.05



Performance Share Awards

The following table summarizes the Company’s performance share activity for the six months ended June 30, 2012:

 
Performance Shares
Balance at January 1, 2012
1,608,733

Grants
557,891

Forfeitures
(32,203
)
Payouts
(504,755
)
Balance at June 30, 2012
1,629,666



Unrecognized Compensation Costs

As of June 30, 2012, there was $80 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 1.46 years.