Stock-Based Compensation

6 Months Ended

Jun. 30, 2011

Stock-Based Compensation [Abstract]

STOCK-BASED COMPENSATION

NOTE 12 — STOCK-BASED COMPENSATION

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

	Three Months Ended
	June 30
(in Millions)	2011		2010
Stock-based compensation expense	$	11	$	13
Tax benefit		4		5
Stock-based compensation cost capitalized in property, plant and equipment		1		1

	Six Months Ended
	June 30
(in Millions)	2011		2010
Stock-based compensation expense	$	29	$	29
Tax benefit		11		11
Stock-based compensation cost capitalized in property, plant and equipment		2		2

Stock Options

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

				Weighted		(in Millions)
				Average		Aggregate
	Number of			Exercise Price		Intrinsic
	Options			Per Share		Value
Options outstanding at January 1, 2011		4,827,457		$	41.09
Granted		—		$	—
Exercised		(1,450,974	)	$	40.55
Forfeited or expired		(21,288	)	$	43.47
Options outstanding at June 30, 2011		3,355,195		$	41.30	$	29.72
Options exercisable at June 30, 2011		2,688,709		$	42.23	$	21.33

As of June 30, 2011, the weighted average remaining contractual life for the exercisable shares was 4.59 years. As of June 30, 2011, 666,486 options were non-vested. During the six months ended June 30, 2011, 687,061 options vested.

The intrinsic value of options exercised for the six months ended June 30, 2011 was $14 million. Total option expense recognized was $1 million and $2 million for the six months ended June 30, 2011 and 2010, respectively.

Restricted Stock Awards

The following summarizes stock awards activity for the six months ended June 30, 2011:

				Weighted Average
				Grant Date
	Restricted			Fair Value
	Stock			Per Share
Balance at January 1, 2011		757,414		$	37.32
Grants		380,840		$	47.98
Forfeitures		(18,692	)	$	38.24
Vested and issued		(263,237	)	$	39.60
Balance at June 30, 2011		856,325		$	41.42

Performance Share Awards

The following summarizes performance share activity for the six months ended June 30, 2011:

	Performance Shares
Balance at January 1, 2011		1,527,253
Grants		597,372
Forfeitures		(12,096	)
Payouts		(467,688	)
Balance at June 30, 2011		1,644,841

Unrecognized Compensation Cost

As of June 30, 2011, the Company had $68 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 1.53 years.