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STOCKHOLDERS' EQUITY AND BENEFIT PLANS | 6 Months Ended
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Jun. 30, 2012
STOCKHOLDERS' EQUITY AND BENEFIT PLANS | 6. STOCKHOLDERS’ EQUITY AND BENEFIT PLANS Common Stock Repurchase Programs. Purchases of the Company’s common stock are made from time to time, subject to market conditions and at prevailing market prices, through the open market. Repurchased shares of common stock are recorded at cost and become authorized but unissued shares which may be issued in the future for general corporate and other purposes. The Company may terminate or limit its stock repurchase program at any time. In the event the repurchased shares are cancelled, the Company accounts for retirements by allocating the repurchase price to common stock, additional paid-in capital and retained earnings. The repurchase price allocation is based upon the equity contribution associated with historical issuances. These repurchase programs were conducted pursuant to Rule 10b-18 of the Exchange Act. During the period from the announcement of the Company’s $750 million buyback authorization in August 2010 until the end of the Second Quarter, the Company has repurchased approximately $568.3 million of its common stock, representing approximately 7.5 million shares. During the Year To Date Period, the Company effectively retired 7.5 million shares of common stock repurchased under its repurchase programs during the 2010, 2011 and 2012 fiscal years. The effective retirement of common stock repurchased decreased common stock by $75,000, additional paid in capital by $48.4 million, retained earnings by $520.4 million and treasury stock by $568.9 million. The following table reflects the Company’s common stock repurchase activity for the periods indicated (in millions):
|  |  |  |  |  |  | For the 13 Weeks Ended June 30, 2012 |  |  | For the 26 Weeks Ended June 30, 2012 |
Fiscal year authorized |  | Dollar value authorized |  |  | Termination date |  | Number of shares repurchased |  |  | Dollar value repurchased |  |  | Number of shares repurchased |  |  | Dollar value repurchased |
2010 |  | $ | 30.0 |  |  | None |  |  | 0.0 |  |  | $ | 0.0 |  |  |  | 0.0 |  |  | $ | 0.0 |
2010 |  | $ | 750.0 |  |  | December 2013 |  |  | 0.7 |  |  | $ | 58.9 |  |  |  | 1.3 |  |  | $ | 118.2 |
Stock-Based Compensation Plans. The Company accounts for stock-based compensation in accordance with the provisions of ASC 718, Compensation-Stock Compensation (“ASC 718”), using the Black-Scholes option pricing model to determine the fair value of stock options and stock appreciation rights at the date of grant. The Company’s current stock-based compensation plans include: (i) stock options and restricted stock for its international employees, (ii) stock options and restricted stock units for its non-employee directors and (iii) stock appreciation rights, restricted stock and restricted stock units for its U.S.-based employees. There have been no significant changes to the Company’s stock-based compensation plans since the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2011. The following table summarizes stock options and stock appreciation rights activity during the Second Quarter:
Stock Options and Stock Appreciation Rights |  | Shares |  |  | Weighted- Average Exercise Price |  |  | Weighted- Average Remaining Contractual Term (Years) |  |  | Aggregate Intrinsic Value |
|  | IN THOUSANDS |  |  |  |  |  |  |  |  | IN THOUSANDS |
Outstanding at March 31, 2012 |  |  | 1,193 |  |  | $ | 61.03 |  |  |  | 6.6 |  |  | $ | 84,641 |
Granted |  |  | 12 |  |  |  | 131.46 |  |  |  |  |  |  |  |  |
Exercised |  |  | (4 | ) |  |  | 28.84 |  |  |  |  |  |  |  | 240 |
Forfeited or expired |  |  | 0 |  |  |  | 0.00 |  |  |  |  |  |  |  |  |
Outstanding at June 30, 2012 |  |  | 1,201 |  |  |  | 61.81 |  |  |  | 6.3 |  |  |  | 34,152 |
Exercisable at June 30, 2012 |  |  | 543 |  |  |  | 37.36 |  |  |  | 4.5 |  |  |  | 22,989 |
Nonvested at June 30, 2012 |  |  | 658 |  |  |  | 82.02 |  |  |  | 7.9 |  |  |  | 11,162 |
Expected to vest |  |  | 593 |  |  | $ | 82.02 |  |  |  | 7.9 |  |  | $ | 10,180 |
The aggregate intrinsic value in the table above is before income taxes and is based on (i) the exercise price for outstanding and exercisable options/rights at June 30, 2012 and (ii) the fair market value of the Company’s common stock on the exercise date for options/rights that were exercised during the Second Quarter. Stock Options and Stock Appreciation Rights Outstanding and Exercisable. The following table summarizes information with respect to stock options and stock appreciation rights outstanding and exercisable at June 30, 2012:
Stock Options and Stock Appreciation Rights Outstanding |  |  | Stock Options and Stock Appreciation Rights Exercisable |
Range of Exercise Prices |  | Number of Shares |  |  | Weighted- Average Exercise Price |  |  | Weighted- Average Remaining Contractual Term (Years) |  |  | Number of Shares |  |  | Weighted- Average Exercise Price |
|  | IN THOUSANDS |  |  |  |  |  |  |  |  | IN THOUSANDS |  |  |  |
$11.66 - $13.15 |  |  | 20 |  |  | $ | 11.70 |  |  |  | 0.7 |  |  |  | 20 |  |  | $ | 11.70 |
$13.15 - $26.29 |  |  | 323 |  |  |  | 18.77 |  |  |  | 4.3 |  |  |  | 232 |  |  |  | 20.67 |
$26.29 - $39.44 |  |  | 310 |  |  |  | 34.46 |  |  |  | 5.8 |  |  |  | 177 |  |  |  | 33.57 |
$39.44 - $52.58 |  |  | 32 |  |  |  | 43.12 |  |  |  | 5.5 |  |  |  | 32 |  |  |  | 43.12 |
$65.73 - $78.88 |  |  | 4 |  |  |  | 69.53 |  |  |  | 8.5 |  |  |  | 1 |  |  |  | 69.53 |
$78.88 - $92.02 |  |  | 202 |  |  |  | 81.23 |  |  |  | 8.2 |  |  |  | 47 |  |  |  | 81.23 |
$92.02 - $105.17 |  |  | 6 |  |  |  | 93.29 |  |  |  | 8.8 |  |  |  | 2 |  |  |  | 93.29 |
$118.31 - $131.46 |  |  | 304 |  |  |  | 127.35 |  |  |  | 8.3 |  |  |  | 32 |  |  |  | 121.73 |
Total |  |  | 1,201 |  |  | $ | 61.81 |  |  |  | 6.3 |  |  |  | 543 |  |  | $ | 37.36 |
Restricted Stock and Restricted Stock Units. The following table summarizes restricted stock and restricted stock unit activity during the Second Quarter:
Restricted Stock and Restricted Stock Units |  | Number of Shares |  |  | Weighted-Average Grant-Date Fair Value |
|  | IN THOUSANDS |  |  |  |
Nonvested at March 31, 2012 |  |  | 269 |  |  | $ | 66.60 |
Granted |  |  | 23 |  |  |  | 88.01 |
Vested |  |  | (16 | ) |  |  | 69.10 |
Forfeited |  |  | (1 | ) |  |  | 88.11 |
Nonvested at June 30, 2012 |  |  | 275 |  |  |  | 68.19 |
Expected to vest |  |  | 249 |  |  | $ | 68.19 |
The total fair value of restricted stock and restricted stock units vested during the Second Quarter was approximately $1.2 million.

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- Definition Tabular disclosure of components of a stock option or other award plan under which equity-based compensation is awarded to employees, typically comprised of the amount of unearned compensation (deferred compensation cost), compensation expense, and changes in the quantity and fair value of the shares (or other type of equity) granted, exercised, forfeited, and issued and outstanding pertaining to that plan. Disclosure may also include nature and general terms of such arrangements that existed during the period and potential effects of those arrangements on shareholders, effect of compensation cost arising from equity-based payment arrangements on the income statement, method of estimating the fair value of the goods or services received, or the fair value of the equity instruments granted, during the period, cash flow effects resulting from equity-based payment arrangements and, for registrants that accelerate vesting of out of the money share options, reasons for the decision to accelerate. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 123R -Paragraph 64, 65, A240 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. + Details
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