Stock-Based Compensation

6 Months Ended

Jun. 30, 2018

Stock-Based Compensation

Stock-Based Compensation

6. Stock-Based Compensation: Stock-based compensation cost is measured at grant date, based on the fair value of the award, and is recognized over the employee requisite service period. The following table presents total stock-based compensation cost included in income from continuing operations.

	Three Months Ended June 30,						Six Months Ended June 30,
(Dollars in millions)	2018			2017			2018			2017
Cost	$	21		$	23		$	41		$	46
Selling, general and administrative	88			98			169			189
Research, development and engineering	16			15			32			29
Pre-tax stock-based compensation cost	$	125		$	136		$	242		$	265
Income tax benefits	(24		)	(38		)	(59		)	(86		)
Total net stock-based compensation cost	$	102		$	97		$	183		$	178

Pre-tax stock-based compensation cost for the three months ended June 30, 2018 decreased $10 million compared to the corresponding period in the prior year. This was due to decreases related to restricted stock units ($7 million), performance share units ($2 million), and the conversion of stock-based awards previously issued by acquired entities ($1 million).

Pre-tax stock-based compensation cost for the six months ended June 30, 2018 decreased $23 million compared to the corresponding period in the prior year. This was due to decreases related to restricted stock units ($12 million), performance share units ($8 million), and the conversion of stock-based awards previously issued by acquired entities ($3 million).

As of June 30, 2018, the total unrecognized compensation cost of $965 million related to non-vested awards was expected to be recognized over a weighted-average period of approximately 2.7 years.

There was no significant capitalized stock-based compensation cost at June 30, 2018 and 2017.