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Stock-Based Compensation (Tables)
 9 Months Ended
Sep. 30, 2012
Pre-Tax Compensation Expense and Related Income Tax Benefit for Stock-Based Incentives
Pre-tax compensation expense and the related income tax benefit for these stock-based incentives were as follows, in millions:

 

     Three Months  Ended
September 30,		     Nine Months  Ended
September 30,		  
     2012      2011     2012      2011  

Long-term stock awards

    $ 9       $ 9      $ 28       $ 28   

Stock options

      3         6        12         17   

Phantom stock awards and stock appreciation rights

      2         (5 )      8         (3 ) 
  

 

 

     

 

 

    

 

 

     

 

 

  

Total

    $ 14       $ 10      $ 48       $ 42   

Income tax benefit (36 percent tax rate – before valuation allowance)

    $ 5       $ 4      $ 18       $ 16   
Company's Long-Term Stock Award Activity
     The Company’s long-term stock award activity was as follows, shares in millions:

 

     Nine Months Ended
September 30,		  
     2012      2011  

Unvested stock award shares at January 1

      10         10   

Weighted average grant date fair value

    $ 17       $ 19   

Stock award shares granted

      1         2   

Weighted average grant date fair value

    $ 12       $ 13   

Stock award shares vested

      2         2   

Weighted average grant date fair value

    $ 18       $ 20   

Stock award shares forfeited

      1         —     

Weighted average grant date fair value

    $ 17       $ 18   

Unvested stock award shares at September 30

      8         10   

Weighted average grant date fair value

    $ 16       $ 17   
Company's Stock Option Activity
     The Company’s stock option activity was as follows, shares in millions:

 

                 
     Nine Months Ended
September 30,		  
     2012     2011  

Option shares outstanding, January 1

      36        37   

Weighted average exercise price

    $ 21      $ 21   
     

Option shares granted, including restoration options

      1        2   

Weighted average exercise price

    $ 12      $ 13   
     

Option shares exercised

      1        —     

Aggregate intrinsic value on date of exercise (A)

    $ 4  million    $ 1  million 

Weighted average exercise price

    $ 9      $ 8   
     

Option shares forfeited

      3        3   

Weighted average exercise price

    $ 18      $ 22   
     

Option shares outstanding, September 30

      33        36   

Weighted average exercise price

    $ 21      $ 21   

Weighted average remaining option term (in years)

      5        6   
     

Option shares vested and expected to vest, September 30

      33        36   

Weighted average exercise price

    $ 21      $ 21   

Aggregate intrinsic value (A)

    $ 39  million    $ —    million 

Weighted average remaining option term (in years)

      5        6   
     

Option shares exercisable (vested), September 30

      25        24   

Weighted average exercise price

    $ 24      $ 24   

Aggregate intrinsic value (A)

    $ 17  million    $ —    million 

Weighted average remaining option term (in years)

      4        4   
                    

 

(A) Aggregate intrinsic value is calculated using the Company’s stock price at each respective date, less the exercise price (grant date price) multiplied by the number of shares.
Weighted Average Grant Date Fair Value of Option Shares Granted and Assumptions Used to Estimate those Values Using Black-Scholes Option Pricing Model
     The weighted average grant date fair value of option shares granted in the period and the assumptions used to estimate those values using a Black-Scholes option pricing model were as follows:

 

     Nine Months  Ended
September 30,		  
     2012     2011  

Weighted average grant date fair value

    $ 4.44      $ 5.10   

Risk-free interest rate

      1.09 %      2.72 % 

Dividend yield

      2.57 %      2.34 % 

Volatility factor

      50.97 %      49.00 % 

Expected option life

      6 years        6 years