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9. Share-based Compensation (Tables)
 12 Months Ended
Dec. 31, 2012
Share-based Compensation [Abstract]  
Stock Options Activity

Stock Options
The following table summarizes stock option activity.

 
 
Shares
 
Weighted-
Average
Exercise Price
 
Weighted-
Average
Remaining
Contractual
Term (in years)
 
Aggregate
Intrinsic
Value
(in millions)
Outstanding, January 1, 2010
 
1,206,374

 
$
50.78

 
 
 
 
Granted
 
58,500

 
$
84.57

 
 
 
 
Exercised
 
(200,125
)
 
$
26.81

 
 
 
 
Forfeited/expired
 
(6,930
)
 
$
61.08

 
 
 
 
Outstanding, December 31, 2010
 
1,057,819

 
$
57.12

 
 
 
 
Granted
 
58,500

 
$
99.49

 
 
 
 
Exercised
 
(220,372
)
 
$
42.44

 
 
 
 
Forfeited/expired
 
(7,197
)
 
$
62.98

 
 
 
 
Outstanding, December 31, 2011
 
888,750

 
$
63.50

 
 
 
 
Granted
 
55,250

 
$
107.32

 
 
 
 
Exercised
 
(181,707
)
 
$
44.66

 
 
 
 
Forfeited/expired
 
(15,000
)
 
$
87.78

 
 
 
 
Outstanding, December 31, 2012
 
747,293

 
$
70.83

 
4.32
 
$
25.7

Vested and expected to vest,
 
 
 
 
 
 
 
 
December 31, 2012
 
732,875

 
$
70.28

 
4.23
 
$
25.6

Exercisable, December 31, 2012
 
584,943

 
$
64.06

 
3.20
 
$
24.0
Stock Options Outstanding

The following summarizes information about stock options outstanding at December 31, 2012:

 
 
Options Outstanding
 
Options Exercisable
Range of
Exercise Prices
 
Number
Outstanding
 
Weighted-Average
Remaining
Contractual Term
(in years)
 
Weighted -Average
Exercise
Price
 
Number
Exercisable
 
Weighted -
Average
Exercise Price
$ 35.50 - $ 56.40
 
202,473

 
1.42
 
$
53.69

 
202,473

 
$
53.69

$ 57.49 - $ 63.00
 
225,870

 
2.92
 
$
61.20

 
225,870

 
$
61.20

$ 74.27 - $ 88.48
 
210,200

 
6.05
 
$
80.82

 
145,900

 
$
80.29

$ 98.04 - $107.32
 
108,750

 
9.28
 
$
103.44

 
10,700

 
$
99.44

Totals
 
747,293

 
 
 
 
 
584,943

 
 
Stock Options Valuation Assumptions

The weighted-average fair value of stock options granted was estimated using a Black-Scholes option-pricing model with the following weighted-average assumptions:

 
 
Year Ended December 31,
 
 
2012
 
2011
 
2010
Expected volatility
 
30
%
 
32
%
 
35
%
Risk-free interest rate
 
1.53
%
 
1.71
%
 
2.40
%
Expected life (in years)
 
9.0

 
8.6

 
8.7

Expected dividend
 
—

 
—

 
—

Weighted-average fair value of options granted
 
$
41.82

 
$
40.81

 
$
38.19
Resticted Stock Activity

The following table summarizes restricted stock activity:

 
 
Year Ended December 31,
 
 
2012
 
2011
 
2010
 
 
Restricted
Stock
Shares
 
Weighted-
Average
Grant-Date
Fair Value
 
Restricted
Stock
Shares
 
Weighted-
Average
Grant-Date
Fair Value
 
Restricted
Stock
Shares
 
Weighted-
Average
Grant-Date
Fair Value
Nonvested shares, at
 
 

 
 

 
 

 
 

 
 

 
 

  beginning of year
 
39,629

 
$
84.07

 
68,893

 
$
83.21

 
101,247

 
$
82.86

Vested
 
(25,124
)
 
$
81.98

 
(26,179
)
 
$
81.98

 
(28,518
)
 
$
81.94

Cancelled/forfeited
 
(1,548
)
 
$
84.20

 
(3,085
)
 
$
82.63

 
(3,836
)
 
$
83.47

Nonvested shares, at
 
 
 
 
 
 
 
 

 
 
 
 
end of year
 
12,957

 
$
88.09

 
39,629

 
$
84.07

 
68,893

 
$
83.21
Schedule of Share-based Compensation, Restricted Stock Units Award Activity

The following table summarizes restricted stock unit activity:
 
 
Restricted
Stock
Units
 
Weighted-
Average
Grant-Date
Fair Value
 
Weighted-Average
Remaining
Contractual Term
(in years)
 
Aggregate
Intrinsic Value
as of
December 31, 2012
(in millions)
Outstanding, January 1, 2010
 
163,198

 
$
77.01

 
 
 
 
Granted
 
126,330

 
$
84.57

 
 
 
 
Vested
 
(33,825
)
 
$
78.41

 
 
 
 
Forfeited
 
(13,481
)
 
$
79.71

 
 
 
 
Outstanding, December 31, 2010
 
242,222

 
$
80.61

 
 
 
 
Granted
 
127,920

$
—

$
98.25

 
 
 
 
Vested
 
(54,350
)
$
—

$
79.67

 
 
 
 
Forfeited
 
(16,430
)
$
0.08

$
80.70

 
 
 
 
Outstanding, December 31, 2011
 
299,362

$
—

$
88.31

 
 
 
 
Granted
 
138,840

$
—

$
107.32

 
 
 
 
Vested
 
(75,466
)
$
—

$
85.52

 
 
 
 
Forfeited
 
(14,235
)
$
0.08

$
89.31

 
 
 
 
Outstanding, December 31, 2012
 
348,501

$
—

$
96.45

 
2.17
 
$
36.6
Employee Stock Purchase Plan, Valuation Assumptions
The fair value of the employees’ purchase rights under the 2011 ESPP and the 1988 ESPP was estimated using a Black-Scholes model with the following weighted-average assumptions:

 
Year Ended December 31,
 
2012
 
 
 
2011
 
 
 
2010
Expected volatility
27
%
 
 
 
20
%
 
 
 
23
%
Risk-free interest rate
0.07
%
 
 
 
0.06
%
 
 
 
0.15
%
Expected life (in years)
0.25

 
 
 
0.25

 
 
 
0.25

Expected dividend
—

 
 
 
—

 
 
 
—

Weighted-average fair value
 
 
 
 
 
 
 
 
 
of purchase rights
$
20.70

 
 
 
$
20.35

 
 
 
$
18.27