11. STOCK BASED COMPENSATION PLANS The Corporation has outstanding stock options and non- vested common stock (restricted stock) under its Amended and Restated 1995 Long-Term Incentive Plan. Generally, stock options vest one year from the date of grant and the exercise price equals or exceeds the market price on the date of grant. Outstanding nonvested common stock gener- ally vests five years from the date of grant. The Corporation’s stock option activity in 2003, 2002 and 2001 consisted of the following: Exercise prices for employee stock options at December 31, 2003 ranged from $45.76 to $84.61 per share. The weighted-average remaining contractual life of employee stock options is 6 years. The Corporation uses the Black-Scholes model to estimate the fair value of employee stock options for pro forma dis- closure of the effects on net income and earnings per share. The Corporation used the following weighted-average assumptions in the Black-Scholes model for 2003, 2002 and 2001, respectively: risk-free interest rates of 3.6%, 4.2% and 4.1%; expected stock price volatility of .288, .262 and .244; dividend yield of 2.6%, 1.9% and 2.0%; and an expected life of seven years. The Corporation’s net income Foreign currency gains (losses) from continuing operations before income taxes amounted to $(6) million in 2003, $26 million in 2002 and $(22) million in 2001.  The balances in accumulated other comprehensive income related to foreign currency translation were reductions in stockholders’ equity of $94 million at December 31, 2003 and $107 million at December 31, 2002. The Corporation has funded noncontributory defined bene- fit pension plans for substantially all of its employees. In addition, the Corporation has an unfunded supplemental pension plan covering certain employees. The unfunded would have been reduced by approximately $1 million in 2003 and $14 million in 2002 and 2001 if option expenses were recorded using the fair value method. The weighted-average fair value per share of options granted for which the exercise price equaled the market price on the date of grant were $12.60 in 2003, $19.63 in 2002 and $16.20 in 2001. Total compensation expense for nonvested common stock was $11 million in 2003, $7 million in 2002 and $12 million in 2001. Awards of nonvested common stock were as follows: 12. FOREIGN CURRENCY TRANSLATION 13. PENSION PLANS Weighted- average Options exercise price (thousands) per share Outstanding at January 1, 2001 4,295 $57.47 Granted 1,674 60.91 Exercised (1,053) 56.28 Forfeited (42) 61.79 Outstanding at December 31, 2001 4,874 58.87 Granted 46 66.45 Exercised (492) 57.81 Forfeited (53) 59.79 Outstanding at December 31, 2002 4,375 59.06 Granted 65 47.07 Forfeited (283) 64.08 Outstanding at December 31, 2003 4,157 $58.54 Exercisable at December 31, 2001 3,216 $57.85 Exercisable at December 31, 2002 4,329 58.99 Exercisable at December 31, 2003 4,092 58.72 Shares of nonvested Weighted- common stock average awarded price on date (thousands) of grant Granted in 2001 108 $67.25 Granted in 2002 21 66.29 Granted in 2003 765 46.73 At December 31, 2003, the number of common shares reserved for issuance under the 1995 Long-Term Incentive Plan is as follows (in thousands): Future awards 479 Stock options outstanding 4,157 Stock appreciation rights 4 Total 4,640 48