Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2013

Pre-Tax Stock-Based Compensation Expense

Pre-tax stock-based compensation expense was as follows:



(In millions)	2013		2012		2011
Stock option awards	$	8.3	$	12.5	$	14.1
Restricted stock units		10.8		10.0		1.6
Performance awards		6.7		3.3		—
Director awards		0.9		1.1		—
Total pre-tax expense		26.7		26.9		15.7
Tax benefit		9.7		9.7		5.3
Total after tax expense	$	17.0	$	17.2	$	10.4

Restricted Stock Units Activity

A summary of activity with respect to restricted stock units outstanding under the Plans related to Home & Security and our Former Parent employees for the year ended December 31, 2013 was as follows:



	Number of Restricted Stock Units			Weighted-Average Grant-Date Fair Value
Non-vested at December 31, 2012		1,767,268		$	14.49
Granted		389,350			34.83
Vested		(730,421	)		13.85
Cancelled		(128,901	)		17.24
Non-vested at December 31, 2013		1,297,296		$	20.68

Black-Scholes Option Pricing Model Assumptions used to Estimate Fair Value of Options

The fair value of Home & Security options granted subsequent to the Separation and our Former Parent’s stock options granted to Home & Security employees prior to the Separation was estimated at the date of grant using a Black-Scholes option pricing model with the assumptions shown in the following table:



	Home & Security Grants						Former Parent Grants

	2013		2012		2011		2011
Current expected dividend yield		1.5%		1.5%		1.5%		2.0%
Expected volatility		32.0%		35.0%		39.0%		33.2%
Risk-free interest rate		1.1%		1.2%		1.2%		2.3%
Expected term		6.0 years		6.0 years		6.5 years		5.5 years

Stock Option Activity

A summary of Home & Security stock option activity related to Home & Security and our Former Parent employees for the year ended December 31, 2013 was as follows:



	Options			Weighted- Average Exercise Price
Outstanding at December 31, 2012		13,070,134		$	13.14
Granted		727,200			33.25
Exercised		(3,770,311	)		13.48
Expired/forfeited		(377,463	)		16.60
Outstanding at December 31, 2013		9,649,560		$	14.39

Options Outstanding and Exercisable

Options outstanding and exercisable at December 31, 2013 were as follows:



	Options Outstanding^(a)						Options Exercisable^(b)

Range Of Exercise Prices	Options Outstanding		Weighted- Average Remaining Contractual Life		Weighted- Average Exercise Price		Options Exercisable		Weighted- Average Exercise Price
$9.00 to $11.99		2,788,572		3.0	$	9.71		2,788,572	$	9.71
12.00 to 14.00		4,590,316		6.9		13.07		2,557,659		13.21
14.01 to 40.96		2,270,672		6.5		22.82		968,430		17.69
		9,649,560		5.8	$	14.39		6,314,661	$	12.35

^(a)	At December 31, 2013, the aggregate intrinsic value of options outstanding was $302.1 million.

^(b)	At December 31, 2013, the weighted-average remaining contractual life of options exercisable was 4.5 years and the aggregate intrinsic value of options exercisable was $210.6 million.

Summarizes Information of Performance Share Awards

The following table summarizes information about performance share awards as of December 31, 2013, as well as activity during the year then ended, based on the target award amounts in the performance share award agreements:



	Number of Performance Share Awards			Weighted-Average Grant-Date Fair Value
Non-vested at December 31, 2012		328,100		$	19.47
Granted		210,500			34.40
Cancelled		(39,100	)		24.38
Non-vested at December 31, 2013		499,500		$	25.38