Share-Based Compensation Plans (Tables)

12 Months Ended

Dec. 31, 2013

Amounts Recognized for Share-Based Compensation

Amounts recognized for share-based compensation for the following years ended December 31 are:

	2013			2012			2011
(dollars in millions)
Total cost of share-based compensation plans	$	61.5		$	52.0		$	55.4
Amounts capitalized in inventory and fixed assets		(1.8	)		(1.5	)		(1.5	)
Amounts charged against income for amounts previously capitalized in inventory and fixed assets		1.8			1.6			1.6
Amounts charged against income	$	61.5		$	52.1		$	55.5
Amount of related income tax benefit recognized in income	$	21.5		$	18.8		$	18.7

Total Stock Option Activity and Amounts

Summarized information regarding total stock option activity and amounts for the year ended December 31, 2013 is as follows:

Options	Number of Options			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (years)		Aggregate Intrinsic Value (millions)
Outstanding - January 1		6,284,738		$	82.83
Granted		843,616			134.42
Exercised		(1,781,789	)		76.03
Canceled/forfeited		(116,996	)		90.18
Outstanding - December 31		5,229,569		$	93.30		6.7	$	214.4
Exercisable		3,326,580		$	83.19		5.3	$	168.8

Assumptions Used To Estimate Fair Value of Stock Option Grants

The assumptions used to estimate the fair value of the company’s stock option grants for the following years ended December 31 are:

	2013			2012			2011
Dividend yield		0.7	%		0.8	%		0.8	%
Risk-free interest rate		1.6	%		0.9	%		1.03	%
Expected option life in years		6.5			7.0			7.0
Expected volatility		21	%		21	%		23	%
Option fair value	$	29.83		$	20.22		$	19.82

Activity in Nonvested Restricted Stock and Unit Awards

The activity in the nonvested restricted stock and unit awards for the year ended December 31, 2013 is as follows:

	Number of Shares			Weighted Average Grant Date Fair Value
Outstanding - January 1		1,055,625		$	87.76
Granted		189,031			134.73
Vested		(322,075	)		88.44
Forfeited		(50,948	)		96.94
Outstanding - December 31		871,633		$	98.34

Activity in Nonvested Restricted Stock Unit Awards

The activity in the nonvested restricted stock unit awards for the year ended December 31, 2013 is as follows:

	Number of Shares			Weighted Average Grant Date Fair Value
Outstanding - January 1		534,157		$	85.17
Granted		143,288			100.13
Vested		(107,177	)		87.16
Forfeited		(59,782	)		88.36
Outstanding - December 31		510,486		$	89.58

Activity in Management Stock Purchase Program

The activity in the MSPP for the year ended December 31, 2013 is as follows:

	Number of Shares			Weighted Average Grant Date Fair Value
Outstanding - January 1		212,167		$	30.76
Purchased		51,524			36.34
Vested		(50,300	)		33.17
Forfeited		(6,928	)		31.87
Outstanding - December 31		206,463		$	31.53

Weighted Average Assumptions Used

The company values the ESPP purchases utilizing the Black-Scholes model. The weighted average assumptions used for the following years ended December 31 are:

	2013			2012			2011
Dividend yield		0.8	%		0.9	%		0.8	%
Risk-free interest rate		0.11	%		0.11	%		0.16	%
Expected life in years		0.5			0.5			0.5
Expected volatility		16	%		26	%		17	%
Fair value	$	20.08		$	21.21		$	19.63

Management Stock Purchase Plan

Weighted Average Assumptions Used

The assumptions used for the following years ended December 31 are:

	2013			2012			2011
Dividend yield		0.8	%		0.9	%		0.8	%
Risk-free interest rate		0.10	%		0.16	%		0.12	%
Expected life in years		0.6			0.6			0.6
Expected volatility		15	%		20	%		16	%
Fair value	$	37.20		$	38.33		$	38.25