Stock-Based Compensation

3 Months Ended

Mar. 31, 2023

Stock-Based Compensation

Stock-Based Compensation

17. Stock-Based Compensation:

Stock-based compensation cost for stock awards and stock options 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:	2023		2022
Cost	$	46	$	40
Selling, general and administrative		149		136
Research, development and engineering		74		57
Pre-tax stock-based compensation cost	$	268	$	234
Income tax benefits		(67)		(57)
Total net stock-based compensation cost	$	201	$	177

Pre-tax stock-based compensation cost for the three months ended March 31, 2023 increased $35 million compared to the corresponding period in the prior year, including increases in Employees Stock Purchase Plan (ESPP) ($19 million) as a result of ESPP being considered compensatory effective April 1, 2022 and stock options ($14 million) due to the conversion of stock options previously issued by acquired entities and stock options granted by the company as part of its executive compensation programs.

Total unrecognized compensation cost related to non-vested awards at March 31, 2023 was $1.7 billion and is expected to be recognized over a weighted-average period of approximately 2.6 years.