Stock-Based Compensation

6 Months Ended

Jun. 30, 2019

Stock-Based Compensation

Stock-Based Compensation

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.

	Three Months Ended June 30,				Six Months Ended June 30,
(Dollars in millions)	2019		2018		2019		2018
Cost	$	22	$	21	$	42	$	41
Selling, general and administrative		93		88		167		169
Research, development and engineering		21		16		39		32
Pre-tax stock-based compensation cost	$	135	$	125	$	248	$	242
Income tax benefits		(29)		(24)		(54)		(59)
Total net stock-based compensation cost	$	106	$	102	$	194	$	183

Pre-tax stock-based compensation cost for the three months ended June 30, 2019 increased $10 million compared to the corresponding period in the prior year. This was due to an increase related to restricted stock units ($13 million), partially offset by decreases in performance share units ($1 million), stock options ($1 million) and the conversion of stock-based compensation previously issued by acquired entities ($1 million).

Pre-tax stock-based compensation cost for the six months ended June 30, 2019 increased $7 million compared to the corresponding period in the prior year. This was due to an increase related to restricted stock units ($16 million), partially offset by decreases in performance share units ($5 million), stock options ($2 million) and the conversion of stock-based compensation previously issued by acquired entities ($2 million).

As of June 30, 2019, the total unrecognized compensation cost of $1.0 billion related to non-vested awards was expected to be recognized over a weighted-average period of approximately 2.8 years.

There was no significant capitalized stock-based compensation cost at June 30, 2019 and 2018.