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Stock Plans and Share-Based Compensation (Tables)
 12 Months Ended
Dec. 31, 2019
Share-based Payment Arrangement [Abstract]  
Schedule of Share-Based Compensation and Related Income Tax Benefit Total pre-tax expense and income tax benefits associated with share-based compensation are shown in the table below. Income tax benefits include impacts from option exercises and the vesting of other equity awards. Modifications to the terms of awards (see Equity Award Modifications below) impacted share-based compensation expense in 2017.
 
Fiscal Years
(Dollars in Millions)
2019
2018
2017
Share-Based Compensation Expense
 
 
 
Performance Units
$
42

$
28

$
49

Stock Options
18

13

22

Restricted Stock Units and Awards
8

6

15

Stock Awards for Directors
2

2

3

Employee Stock Purchase Plan
4

2

—

Total Share-based Compensation Expense
$
74

$
51

$
89

Income Tax Benefit
$
43

$
26

$
42
Schedule of Assumptions and Inputs Used to Estimate Fair Value of Performance Units
The fair value of the performance units awarded during the years ended December 2019 and 2018 were calculated using a Monte-Carlo simulation model with the following weighted-average assumptions:

Weighted-average assumptions used:
2019
2018
Annual dividend yield
1.4
%
1.6
%
Risk-free interest rate
2.4
%
2.3
%
Annualized volatility
27.4
%
29.1
%
Expected life (in years)
2.8

2.9
Schedule of Performance Unit Grant and Vesting Information
Performance unit grant and vesting information is summarized as follows:
 
Fiscal Years
 
2019
 
2018
 
2017
Weighted-average grant date fair value
$
66.18

 
$
55.57

 
$
49.50

Fair value of units vested in fiscal year ending (in millions)
$
17

 
$
14

 
$
26
Schedule of Performance Unit Activity Related to Outstanding Long-term Incentive Plans and Corresponding Fair Value
The performance unit activity related to the outstanding long-term incentive plans and corresponding fair value is summarized as follows:
 
Performance Units Outstanding
(in Thousands)
 
Weighted-Average Fair Value at Grant Date
Unvested at December 31, 2018
722

 
$
52.58

Granted
337

 
66.18

Forfeited
(75
)
 
57.20

Vested
(341
)
 
49.52

Unvested at December 31, 2019
643

 
$
60.58
Schedule of Assumptions and Inputs Used to Estimate Fair Value of Stock Options
Assumptions and inputs used to estimate fair value of stock options are summarized as follows:
 
Fiscal Years
 
2019
2018
2017
Weighted-average grant date fair value
$
17.87

$
14.65

$
12.84

 
 
 
 
Stock options valuation assumptions:
 
 
 
Annual dividend yield
1.3
%
1.5
%
1.5
%
Risk-free interest rate
2.4
%
2.6
%
2.2
%
Annualized volatility
25.7
%
27.0
%
27.1
%
Expected life (in years)
6.1

6.5

6.3

Other pricing model inputs:
 
 
 
Weighted-average grant-date market price of CSX stock (strike price)
$
70.01

$
54.19

$
49.63
Schedule of Stock Option Activity
The stock option activity is summarized as follows:
 
Stock Options Outstanding
(in Thousands)
Weighted-Average Exercise Price
Weighted-Average Remaining Contractual Life
(in Years)
Aggregate Intrinsic Value
(in Millions)
Outstanding at December 31, 2018
4,673

$
34.89

 
 
Granted
1,187

70.01

 
 
Forfeited
(212
)
55.35

 
 
Exercised
(1,853
)
24.48

 
 
Outstanding at December 31, 2019
3,795

$
49.78

7.5
$
87

Exercisable at December 31, 2019
1,026

$
24.60

6.0
$
49
Schedule of Intrinsic Value and Cash Proceeds of Options Exercises There were no significant exercises during 2017 or 2018. Additional information on stock option exercises in 2019 is summarized as follows:

(Dollars in Millions)
2019
Intrinsic value of stock options exercised
$
87

Cash received from option exercises
$
45
Schedule of Restricted Stock Grant and Vesting Information
Restricted stock grant and vesting information is summarized as follows:
 
Fiscal Years
 
2019
 
2018
 
2017
Weighted-average grant date fair value
$
69.19

 
$
62.60

 
$
48.35

Fair value of units and awards vested during fiscal year ended (in millions)
$
7

 
$
9

 
$
8
Schedule of Outstanding Restricted Stock Units and Awards
The restricted stock activity related to the outstanding long-term incentive plans and other awards and corresponding fair value is summarized as follows:
 
Restricted Stock Units and Awards Outstanding
(in Thousands)
 
Weighted-Average Fair Value at Grant Date
Unvested at December 31, 2018
684

 
$
39.30

Granted
88

 
69.19

Forfeited
(30
)
 
53.28

Vested
(315
)
 
24.21

Unvested at December 31, 2019
427

 
$
57.29