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Stock-Based Compensation
 12 Months Ended
Dec. 31, 2019
Share-based Payment Arrangement [Abstract]  
Stock-Based Compensation 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, 2019, 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 are granted. At December 31, 2019, approximately 3 million shares were available under the current plan for these awards.
 
Year ended December 31,
Dollar amounts in millions
2019
 
2018
 
2017
Total stock-based compensation expense (costs of sales, selling, general and administrative and other operating credits and charges, net)
$
9

 
$
8

 
$
10

Income tax benefit related to stock-based compensation
$
1

 
$
3

 
$
1

Impact on cash flow due to taxes paid related to net share settlement of equity awards
$
(5
)
 
$
(9
)
 
$
(6
)

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. On exercise, we generally issue these shares from treasury. The SSARs are granted at market price at the date of grant. SSARs become exercisable over three years and expire ten years after the date of grant. Fair values are estimated using the Black-Scholes option-pricing model. The following table summarizes the grant-date fair value of options and SSARs and the assumptions used to develop the fair value estimates for options and SSARs granted during the year ended December 31, 2017:
Weighted average grant-date fair value of options
$
8.02

Risk-free interest rate
2.1
%
Expected volatility
41.0
%
Expected life (in years)
6



The Company’s estimate of expected volatility for stock options and SSARs is based upon our historical stock prices. We base the risk-free interest rate on U.S. Treasury issues with an equivalent term. The expected life is an estimate of the number of years an award is expected to be outstanding and was determined based on the historical experience of other awards.
Restricted Shares, Restricted Stock Units, and Performance Stock Units
We grant time-vested restricted stock units and performance stock units to certain key employees and directors under our stock award plan. Generally, time-vested restricted stock units granted prior to January 1, 2020, are subject to cliff-vesting for a period of three years from the date of grant for employees and one year for directors. Performance stock units vest based upon the attainment of certain performance metrics over a three-year cumulative performance period. Certain of these awards are eligible to receive dividend equivalent shares. The market value of these awards approximates the grant date fair value of the awards. For awards based upon the achievement of the performance goals, the awards are earned ratably from 0% to 200%. If the performance goals are met at the end of the performance period, the award is adjusted to reflect 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, 2019, as well as activity during the last year. 
 
Stock Options / SSARS
 
Restricted stock
 
Restricted Stock Units and Performance Stock Units
 
Number of Awards
 
Weighted
Average
Exercise Price
 
Number of Awards
 
Weighted Average Grant Date Fair Value
 
Number of Awards
 
Weighted Average Grant Date Fair Value
Outstanding at December 31, 2018
1,141,686

 
$
15.50

 
240,174

 
$
17.43

 
956,614

 
$
23.17

Granted
—

 
—

 
—

 
—

 
674,059

 
24.16

Exercised
(497,076
)
 
15.38

 
—

 
—

 
—

 
—

Vested
—

 
—

 
(156,680
)
 
15.81

 
(356,161
)
 
18.57

Forfeited
(4,089
)
 
19.14

 
(4,526
)
 
19.14

 
(135,265
)
 
24.79

Outstanding at December 31, 2019
640,521

 
$
15.56

 
78,968

 
$
20.05

 
1,139,247

 
$
24.82

Vested and expected to vest at December 31, 2019(1)
640,521

 
$
15.56

 
75,020

 
$
20.05

 
1,048,862

 
$
24.82

Exercisable at December 31, 2019
570,473

 
$
15.13

 
—

 
—

 
—

 
$
—

Unrecognized compensation costs (in millions)
 
 
$
—

 
 
 
$
—

 
 
 
$
13

To be recognized over weighted-average period of years
 
 
0.1

 
 
 
0.1

 
 
 
1.5

 _______________
(1) 
Expected to vest based upon historical forfeiture rate

The aggregate intrinsic value of the stock options and SSARs represented in the above table is the total pre-tax intrinsic value (the difference between our closing stock price on the last trading day of 2019 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 December 31, 2019. This amount, $9 million, changes based on the market value of our stock, as reported by the New York Stock Exchange.

The intrinsic value of SSARs exercised in the years ended December 31, 2019, 2018, and 2017 was $13 million, $35 million, and $26 million, respectively. The total fair value of awards vested during the years ended December 31, 2019, 2018 and 2017, was $11 million, $8 million and $7 million, respectively.

Share Repurchase Program

In February 2019, we announced that our Board of Directors authorized a $600 million share repurchase program. We entered into an accelerated share repurchase (ASR) agreement with Goldman Sachs & Co. LLC to repurchase $400 million of our common stock. Under the ASR agreement, we received a delivery of approximately 16 million shares at an average price of $24.43 per share for the entire ASR program.

Additionally, we repurchased approximately nine million shares of our common stock at an average price of $26.60 per share through market purchases during 2019, thereby using all of the remaining capacity of the $600 million share repurchase program.

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 three-month periods). At December 31, 2019, two million shares of common stock were reserved for issuance under the ESPP provisions.