XML 37 R18.htm IDEA: XBRL DOCUMENT v3.24.0.1
Stock-Based Compensation
 12 Months Ended
Dec. 31, 2023
Share-Based Payment Arrangement [Abstract]  
Shareholders' Equity and Share-based Payments STOCKHOLDERS' EQUITY
Preferred Stock
We are authorized to issue up to 15,000,000 shares of preferred stock at $1.00 par value. At December 31, 2023, no shares of preferred stock have been issued.
Stock Award Plan
We have a stock-based compensation plan under which stock options, SSARs, restricted stock, restricted stock units, and performance stock units may be granted. At December 31, 2023, approximately four million shares were available under the current plan for these awards.
Year ended December 31,
(Dollars in millions)
2023
2022
2021
Total stock-based compensation expense (cost of sales, selling, general and administrative, and other operating credits and charges, net)$13 $19 $16 
Income tax benefit related to stock-based compensation$2 $8 $3 
Impact on cash flow due to taxes paid related to net share settlement of equity awards$(12)$(16)$(7)
We recognize the compensation costs on a straight-line basis over the requisite service period of the award, which is generally the vesting term of three years.
SSARs
Prior to January 1, 2018, we granted SSARs to key employees under the Company's then-current stock award plan. On exercise, we generally issue these shares from treasury. The SSARs were granted at market price at the date of grant. The SSARs became exercisable over three years and expire ten years after the date of grant. All outstanding SSARs were vested as of December 31, 2023.
Restricted Stock Units and Performance Stock Units
We grant time-vested restricted stock units and performance stock units (PSUs) to certain key employees and time-vested restricted stock units to non-employee directors under our stock award plan. Restricted stock units (RSUs) vest ratably over a three-year vesting period for employees and vest in full on the first anniversary of the grant date for non-employee directors. Certain of these awards are eligible to receive dividend equivalent shares. The grant date fair value of these awards approximates market value of the shares. PSUs vest based upon the attainment of certain performance and market metrics over a three-year cumulative performance period. Awards based upon the achievement of the performance goals are earned ratably from 0% to 200%. If the performance goals are met at the end of the performance period, the award may be adjusted based on LP's three-year total shareholder return (TSR) performance relative to a capital market peer group. This TSR modifier can increase or decrease the award by 20%, although the TSR modifier cannot cause the award to exceed the maximum of 200%.
Summary of Stock Awards Outstanding
The following table summarizes stock awards as of December 31, 2023, as well as activity during the last year.
Stock Options / SSARSRestricted Stock Units and Performance Stock Units
Number of AwardsWeighted
Average
Exercise Price		Number of AwardsWeighted Average Grant Date Fair Value
Outstanding at December 31, 2022
182,989 $17.59 645,504 $48.49 
Granted— — 590,817 54.97 
Exercised(42,278)17.87 — — 
Vested— — (468,148)38.97 
Forfeited/cancelled— — (200,182)62.60 
Outstanding at December 31, 2023
140,711 $17.50 567,991 $62.59 
Vested and expected to vest at December 31, 20231
140,711 $17.50 
Exercisable at December 31, 2023
140,711 $17.50 
Unrecognized compensation costs (in millions)$— $10 
To be recognized over weighted-average period of years01
    
1Expected to vest based upon historical forfeiture rate.
In October 2023, LP modified the performance vesting criteria of approximately 105,000 and 75,000 PSU awards outstanding that were granted in 2021 and 2022, respectively. The original awards were canceled, and the modified awards were considered granted on the modification date. Stock-based compensation expense related to these modified awards will be recognized over the remaining vesting period based on the expected number of awards to vest using fair values per share of between $49.36 and $53.47. Stock-based compensation expense related to 2021 PSU modification was $4 million for the year ended December 31, 2023.
The aggregate intrinsic value of the stock options and SSARs is the total pre-tax intrinsic value (the difference between our closing stock price on the last trading day of a fiscal year and the exercise price, multiplied by the number of in-the-money options and SSARs) that would have been received by the holders had all holders exercised their awards on the last day of such fiscal year. This amount changes based on the market value of our stock, as reported by the New York Stock Exchange. The intrinsic value of SSARs and stock options exercised in the years ended December 31, 2023, 2022, and 2021 was $3 million, $4 million, and $8 million, respectively.
The total fair value of awards vested during the years ended December 31, 2023, 2022, and 2021, was $31 million, $42 million, and $20 million, respectively.
Share Repurchases
On May 4, 2021, our Board of Directors authorized a share repurchase program (First 2021 Share Repurchase Program) under which we had the ability to repurchase shares of our common stock totaling up to $1 billion. On November 2, 2021, our Board of Directors authorized an additional share repurchase plan under which we had the ability to repurchase shares of our common stock totaling up to $500 million (Second 2021 Share Repurchase Program).
On May 3, 2022, we announced that our Board of Directors authorized a share repurchase program (2022 Share Repurchase Program) under which we may repurchase shares of our common stock totaling up to $600 million.
During 2021, we paid $1.3 billion to repurchase approximately 21 million shares of our common stock at an average price of $61.52 per share through market purchases. During 2022, we paid $900 million to repurchase approximately 14 million shares of our common stock through market purchases at an average price of $62.37 per share. No purchases were made under the 2022 Share Repurchase Program during 2023.
There are no amounts remaining under the First 2021 Share Repurchase Program or the Second 2021 Share Repurchase Program as of December 31, 2023. There is $200 million remaining under the 2022 Share Repurchase Program as of December 31, 2023.
Employee Stock Purchase Plan
Our employee stock purchase plan (ESPP) provides our participating employees an opportunity to obtain shares of our common stock at a discount (through payroll deductions over six-month periods). At December 31, 2023, two million shares of common stock were reserved for issuance under the ESPP.