Stock Plans (Tables)

6 Months Ended

Jun. 30, 2020

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Schedule of Stock Options Activity

Stock option activity is reflected below:

	Shares Subject to Option		Weighted- Average Exercise or Grant Price Per Share	Average Remaining Contractual Term	Aggregate Intrinsic Value
Balance at January 1, 2020	33,855,948		$36.19	5 years	$	640	million
Annual grant to eligible employees	2,280,440		59.04
Additional options issued	130,280		49.14
Total options granted	2,410,720		58.51
Options exercised (1)	(4,929,885	)	29.38		$	133	million
Options canceled	(387,998	)	42.55
Balance at June 30, 2020	30,948,785		38.93	6 years	$	396	million

(1)

Cash received from options exercised was $23 million in the three months and $142 million in the six months ended June 30, 2020. The actual tax benefit realized and recorded in the provision for income taxes for the tax deductions from the option exercises totaled $1 million in the three months and $18 million in the six months ended June 30, 2020.

Performance Share Units and Other Stock-Based Awards

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Schedule of Performance Share Units and Stock-Based Awards Activity

Our performance share unit, deferred stock unit and historically granted restricted stock activity is reflected below:

	Number of Shares		Grant Date	Weighted-Average Fair Value Per Share (3)	Weighted-Average Aggregate Fair Value (3)
Balance at January 1, 2020	5,661,945			$46.90
Annual grant to eligible employees:			Feb. 20, 2020
Performance share units	825,230			65.83
Deferred stock units	545,550			59.04
Additional shares granted (1)	354,041		Various	57.13
Total shares granted	1,724,821			61.90	$	107	million
Vested (2)	(1,689,895	)		43.02	$	73	million
Forfeited	(319,574	)		45.85
Balance at June 30, 2020	5,377,297			52.99

(1) Includes performance share units and deferred stock units.

(2) The actual tax benefit/(expense) realized and recorded in the provision for income taxes for the tax deductions from the shares vested totaled less than $1 million in the three months and $3 million in the six months ended June 30, 2020.

(3)

The grant date fair value of performance share units is determined based on the Monte Carlo simulation model for the market-based total shareholder return component and the closing market price of the Company’s stock on the grant date for performance-based components. The Monte Carlo simulation model incorporates the probability of achieving the total shareholder return market condition. Compensation expense is recognized using the grant date fair values regardless of whether the market condition is achieved, so long as the requisite service has been provided.