Stock-Based Compensation

3 Months Ended

Mar. 31, 2019

7. 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.

(Dollars in millions)
For the three months ended March 31:	2019			2018
Cost	$	20		$	20
Selling, general and administrative	74			81
Research, development and engineering	19			16

Pre-tax stock-based compensation cost	$	113		$	116
Income tax benefits	(25		)	(35		)

Total net stock-based compensation cost	$	88		$	81

Pre-tax stock-based compensation cost for the three months ended March 31, 2019 decreased $3 million compared to the corresponding period in the prior year. This was due to decreases related to performance share units, the conversion of stock-based compensation previously issued by acquired entities and stock options, partially offset by an increase in restricted stock units. All changes were immaterial.

As of March 31, 2019, the total unrecognized compensation cost of $671 million related to non-vested awards was expected to be recognized over a weighted-average period of approximately 2.5 years.

There was no significant capitalized stock-based compensation cost at March 31, 2019 and 2018.