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Stock-Based Compensation (Tables)
12 Months Ended
Dec. 31, 2022
Stock-Based Compensation  
Stock-based compensation cost included in income from continuing operations

($ in millions)

For the year ended December 31:

    

2022

    

2021

    

2020

Cost

$

164

$

145

$

126

SG&A expense

566

555

550

RD&E expense

258

218

197

Pre-tax stock-based compensation cost

987

919

873

Income tax benefits

(249)

(223)

(198)

Net stock-based compensation cost

$

738

$

695

$

675

Summary of Restricted Stock Units activity

RSUs

PSUs

 

Weighted-Average

Weighted-Average

 

    

Grant Price

    

Number of Units

    

Grant Price

    

Number of Units

 

Balance at January 1, 2020

$

123

11,326,628

$

126

2,856,450

Awards granted

115

10,651,955

117

1,582,666

Awards released

126

(3,781,240)

137

(630,974)

Awards canceled/forfeited/performance adjusted

121

(1,300,639)

125

(256,642)

*

Balance at December 31, 2020

$

117

16,896,704

$

120

3,551,500

**

Awards granted

125

9,566,307

129

1,561,120

Awards released

120

(4,582,159)

129

(581,397)

Awards canceled/forfeited/performance adjusted

119

(2,072,800)

124

(453,178)

*

Kyndryl separation - adjustment

660,089

120,428

Kyndryl separation - cancellation

119

(1,429,661)

119

(469,616)

Balance at December 31, 2021

$

116

19,038,480

$

118

3,728,857

**

Awards granted

112

11,447,966

110

1,237,019

Awards released

114

(7,013,530)

114

(679,601)

Awards canceled/forfeited/performance adjusted

116

(2,420,002)

116

(720,197)

*

Balance at December 31, 2022

$

115

21,052,914

$

117

3,566,078

**

*

Includes adjustments of (362,247), (223,397) and (70,089) PSUs for 2022, 2021 and 2020, respectively, because final performance metrics were above or below specified targets.

**

Represents the number of shares expected to be issued based on achievement of grant date performance targets. The actual number of shares issued will depend on final performance against specified targets over the vesting period.

Summary of Performance Share Units activity

RSUs

PSUs

 

Weighted-Average

Weighted-Average

 

    

Grant Price

    

Number of Units

    

Grant Price

    

Number of Units

 

Balance at January 1, 2020

$

123

11,326,628

$

126

2,856,450

Awards granted

115

10,651,955

117

1,582,666

Awards released

126

(3,781,240)

137

(630,974)

Awards canceled/forfeited/performance adjusted

121

(1,300,639)

125

(256,642)

*

Balance at December 31, 2020

$

117

16,896,704

$

120

3,551,500

**

Awards granted

125

9,566,307

129

1,561,120

Awards released

120

(4,582,159)

129

(581,397)

Awards canceled/forfeited/performance adjusted

119

(2,072,800)

124

(453,178)

*

Kyndryl separation - adjustment

660,089

120,428

Kyndryl separation - cancellation

119

(1,429,661)

119

(469,616)

Balance at December 31, 2021

$

116

19,038,480

$

118

3,728,857

**

Awards granted

112

11,447,966

110

1,237,019

Awards released

114

(7,013,530)

114

(679,601)

Awards canceled/forfeited/performance adjusted

116

(2,420,002)

116

(720,197)

*

Balance at December 31, 2022

$

115

21,052,914

$

117

3,566,078

**

*

Includes adjustments of (362,247), (223,397) and (70,089) PSUs for 2022, 2021 and 2020, respectively, because final performance metrics were above or below specified targets.

**

Represents the number of shares expected to be issued based on achievement of grant date performance targets. The actual number of shares issued will depend on final performance against specified targets over the vesting period.

Summary of total fair value of RSUs and PSUs granted and vested

($ in millions)

For the year ended December 31:

    

2022

    

2021

    

2020

RSUs

Granted

$

1,288

$

1,195

$

1,220

Vested

801

549

478

PSUs

Granted

$

136

$

201

$

186

Vested

77

75

86

Schedule of weighted-average assumptions used for estimation of fair value of stock options

For the year ended December 31:

    

2022

Expected term (years)

6.3

Expected volatility

25.5

%

Risk-free rate

2.0

%

Dividend yield

5.3

%

Summary of option activity

Weighted-Average

Number of Shares

    

Exercise Price

    

Under Option

Balance at January 1, 2022

$

135

1,549,732

Options granted

125

5,044,353

Options exercised

Options forfeited/cancelled/expired

125

(319,560)

Balance at December 31, 2022

$

128

6,274,525

Vested and exercisable at December 31, 2022

$

135

1,549,732