Annual report pursuant to Section 13 and 15(d)

STOCK-BASED COMPENSATION (Tables)

v2.4.0.8
STOCK-BASED COMPENSATION (Tables)
 12 Months Ended
Dec. 31, 2013
Share-based Compensation [Abstract]  
Restricted Stock Units Outstanding, Including Reinvested Dividends
As of December 31, 2013, we had the following Restricted Units outstanding, including reinvested dividends, that were granted under our Management Incentive Award and Long-Term Incentive Performance Award:
 
Shares
(in thousands)
 
Weighted
Average
Grant Date
Fair Value
 
Weighted Average Remaining
Contractual Term
(in years)
 
Aggregate Intrinsic
Value (in millions)
Nonvested at January 1, 2013
14,644

 
$
68.71

 
 
 
 
Vested
(7,577
)
 
64.73

 
 
 
 
Granted
5,461

 
80.18

 
 
 
 
Reinvested Dividends
437

 
N/A

 
 
 
 
Forfeited / Expired
(217
)
 
72.12

 
 
 
 
Nonvested at December 31, 2013
12,748

 
$
74.60

 
1.47
 
$
1,340

Restricted Units Expected to Vest
12,330

 
$
74.57

 
1.45
 
$
1,296

Options to Purchase Shares of Class A Common Stock Issued and Outstanding
The following is an analysis of options to purchase shares of class A common stock issued and outstanding:
 
 
Shares
(in thousands)
 
Weighted
Average
Exercise
Price
 
Weighted Average Remaining
Contractual Term
(in years)
 
Aggregate Intrinsic
Value (in millions)
Outstanding at January 1, 2013
10,595

 
$
72.04

 
 
 
 
Exercised
(5,524
)
 
70.85

 
 
 
 
Granted
178

 
82.93

 
 
 
 
Forfeited / Expired
(37
)
 
63.34

 
 
 
 
Outstanding at December 31, 2013
5,212

 
$
73.73

 
3.00
 
$
163

Options Vested and Expected to Vest
5,212

 
$
73.73

 
3.00
 
$
163

Exercisable at December 31, 2013
4,759

 
$
73.52

 
2.53
 
$
150

Fair Value of Employee Stock Options Granted as Determined by Black-Scholes Valuation Model Assumptions
The fair value of each option grant is estimated using the Black-Scholes option pricing model. The weighted average assumptions used, by year, and the calculated weighted average fair values of options, are as follows:
 
2013
 
2012
 
2011
Expected dividend yield
2.75
%
 
2.77
%
 
2.77
%
Risk-free interest rate
1.38
%
 
1.63
%
 
2.90
%
Expected life in years
7.5

 
7.5

 
7.5

Expected volatility
24.85
%
 
25.06
%
 
24.26
%
Weighted average fair value of options granted
$
15.50

 
$
14.88

 
$
15.92

Summarized Information about Stock Options Outstanding and Exercisable
The following table summarizes information about stock options outstanding and exercisable at December 31, 2013:
 
Options Outstanding
 
Options Exercisable
Exercise Price Range
Shares
(in thousands)
 
Average Life
(in years)
 
Average
Exercise
Price
 
Shares
(in thousands)
 
Average
Exercise
Price
$50.01 - $60.00
185

 
5.35
 
$
55.83

 
150

 
$
55.83

$60.01 - $70.00
144

 
6.35
 
67.18

 
97

 
67.18

$70.01 - $80.00
3,380

 
2.68
 
71.70

 
3,170

 
71.43

$80.01 - $90.00
1,503

 
3.10
 
81.13

 
1,342

 
80.91

 
5,212

 
3.00
 
$
73.73

 
4,759

 
$
73.52