Annual report pursuant to Section 13 and 15(d)

STOCK-BASED COMPENSATION (Tables)

v2.4.0.6
STOCK-BASED COMPENSATION (Tables)
 12 Months Ended
Dec. 31, 2012
Share-based Compensation [Abstract]  
Restricted Stock Units Outstanding, Including Reinvested Dividends
As of December 31, 2012, we had the following Restricted Units outstanding, including reinvested dividends:
 
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, 2012
15,839

 
$
62.98

 
 
 
 
Vested
(8,914
)
 
63.99

 
 
 
 
Granted
7,423

 
77.21

 
 
 
 
Reinvested Dividends
568

 
N/A

 
 
 
 
Forfeited / Expired
(272
)
 
67.51

 
 
 
 
Nonvested at December 31, 2012
14,644

 
$
68.71

 
1.57
 
$
1,080

Restricted Units Expected to Vest
14,172

 
$
68.61

 
1.55
 
$
1,045

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, 2012
13,199

 
$
70.18

 
 
 
 
Exercised
(2,778
)
 
63.50

 
 
 
 
Granted
187

 
76.94

 
 
 
 
Forfeited / Expired
(13
)
 
82.74

 
 
 
 
Outstanding at December 31, 2012
10,595

 
$
72.04

 
3.03
 
$
34

Options Vested and Expected to Vest
10,595

 
$
72.04

 
3.03
 
$
34

Exercisable at December 31, 2012
10,115

 
$
72.09

 
2.79
 
$
32

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:
 
2012
 
2011
 
2010
Expected dividend yield
2.77
%
 
2.77
%
 
2.70
%
Risk-free interest rate
1.63
%
 
2.90
%
 
3.30
%
Expected life in years
7.5

 
7.5

 
7.5

Expected volatility
25.06
%
 
24.26
%
 
23.59
%
Weighted average fair value of options granted
$
14.88

 
$
15.92

 
$
14.83

Summarized Information about Stock Options Outstanding and Exercisable
The following table summarizes information about stock options outstanding and exercisable at December 31, 2012:
 
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
211

 
6.35
 
$
55.83

 
133

 
$
55.83

$60.01 - $70.00
1,337

 
1.20
 
62.98

 
1,257

 
62.72

$70.01 - $80.00
6,858

 
3.19
 
71.47

 
6,536

 
71.27

$80.01 - $90.00
2,189

 
3.33
 
80.92

 
2,189

 
80.92

 
10,595

 
3.03
 
$
72.04

 
10,115

 
$
72.09