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
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract]  
Total Stock-Based Compensation Expense
Total stock-based compensation expense in our Consolidated Statements of Income during the twelve months ended December 31, 2013, 2012 and 2011, was as follows:
 
 
 
Twelve Months Ended December 31,
 
(in millions)
 
2013
 
2012
 
2011
 
 
 
 
 
 
 
 
 
 
 
 
Cost of services
 
$
4.2
 
$
3.9
 
$
3.6
 
Selling, general and administrative expenses
 
 
28.0
 
 
24.1
 
 
20.8
 
Stock-based compensation expense, before income taxes
 
$
32.2
 
$
28.0
 
$
24.4
 
Assumptions Used to Estimate Fair Value of Stock Options Granted
The fair value for stock options granted during the twelve months ended December 31, 2013, 2012 and 2011, was estimated at the date of grant, using the binomial model with the following weighted-average assumptions:
 
 
 
Twelve Months Ended December 31,
 
 
 
2013
 
 
2012
 
 
2011
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Dividend yield
 
 
1.5
%
 
 
1.8
%
 
 
1.8
%
Expected volatility
 
 
25.8
%
 
 
31.9
%
 
 
32.7
%
Risk-free interest rate
 
 
1.3
%
 
 
0.6
%
 
 
1.2
%
Expected term (in years)
 
 
4.9
 
 
 
4.9
 
 
 
4.8
 
Weighted-average fair value of stock options granted
 
$
11.95
 
 
$
10.67
 
 
$
7.85
 
Changes in Outstanding Options and Weighed-Average Exercise Price Per Share
The following table summarizes changes in outstanding stock options during the twelve months ended December 31, 2013, as well as stock options that are vested and expected to vest and stock options exercisable at December 31, 2013: 
 
 
 
 
 
 
 
 
 
Weighted-Average
 
 
 
 
 
 
 
 
 
Weighted-Average
 
Remaining
 
Aggregate
 
 
 
Shares
 
Exercise Price
 
Contractual Term
 
Intrinsic Value
 
 
 
(in thousands)
 
 
 
 
(in years)
 
(in millions)
 
Outstanding at December 31, 2012
 
 
4,748
 
$
34.64
 
 
 
 
 
 
 
Granted (all at market price)
 
 
346
 
$
60.15
 
 
 
 
 
 
 
Exercised
 
 
(1,469)
 
$
32.58
 
 
 
 
 
 
 
Forfeited and cancelled
 
 
(95)
 
$
44.24
 
 
 
 
 
 
 
Outstanding at December 31, 2013
 
 
3,530
 
$
37.85
 
 
6.3
 
$
110.3
 
Vested and expected to vest at December 31, 2013
 
 
3,256
 
$
37.76
 
 
6.3
 
$
102.0
 
Exercisable at December 31, 2013
 
 
2,495
 
$
34.45
 
 
5.4
 
$
86.4
 
 
The following table summarizes changes in outstanding options and the related weighted-average exercise price per share for the twelve months ended December 31, 2012 and 2011:
 
 
 
December 31,
 
 
 
2012
 
2011
 
 
 
Shares
 
Weighted-
Average Price
 
Shares
 
Weighted-
Average Price
 
 
 
(Shares in thousands)
 
(Shares in thousands)
 
Outstanding at the beginning of the year
 
 
6,715
 
$
31.82
 
 
6,526
 
$
30.63
 
Granted (all at market price)
 
 
501
 
$
47.04
 
 
1,298
 
$
32.94
 
Exercised
 
 
(2,352)
 
$
29.37
 
 
(947)
 
$
25.02
 
Forfeited and cancelled
 
 
(116)
 
$
31.85
 
 
(162)
 
$
32.99
 
Outstanding at the end of the year
 
 
4,748
 
$
34.64
 
 
6,715
 
$
31.82
 
Exercisable at end of year
 
 
3,061
 
$
33.34
 
 
4,289
 
$
31.71
 
Summary of Changes in Nonvested Stock and Weighted-Average Grant Date Fair Value
The following table summarizes changes in our nonvested stock during the twelve months ended December 31, 2013, 2012 and 2011 and the related weighted-average grant date fair value:
 
 
 
 
 
 
Weighted-Average
 
 
 
 
 
 
Grant Date
 
 
 
Shares
 
Fair Value
 
 
 
(in thousands)
 
 
 
 
Nonvested at December 31, 2010
 
 
1,310
 
$
31.54
 
Granted
 
 
513
 
$
34.07
 
Vested
 
 
(340)
 
$
34.34
 
Forfeited
 
 
(52)
 
$
30.70
 
Nonvested at December 31, 2011
 
 
1,431
 
$
31.79
 
Granted
 
 
685
 
$
44.59
 
Vested
 
 
(440)
 
$
29.02
 
Forfeited
 
 
(60)
 
$
33.31
 
Nonvested at December 31, 2012
 
 
1,616
 
$
37.95
 
Granted
 
 
621
 
$
57.82
 
Vested
 
 
(479)
 
$
33.05
 
Forfeited
 
 
(63)
 
$
40.99
 
Nonvested at December 31, 2013
 
 
1,695
 
$
46.50