Stock-Based Compensation

6 Months Ended

Jun. 30, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

We issue stock-based incentive awards to our eligible employees and Directors under the 2002 Employee Stock Incentive Plan and a Director Deferred Stock Ownership Plan. The 2002 Employee Stock Incentive Plan permits the granting of nonqualified stock options, stock appreciation rights, performance stock, restricted stock and other stock-based awards.

Stock-based compensation for the periods ended June 30 is as follows:



(in millions)	Three Months				Six Months
	2016		2015		2016		2015
Stock option expense ¹	$	2	$	3	$	4	$	9
Restricted stock and unit awards expense	18		16		30		28
Total stock-based compensation expense	$	20	$	19	$	34	$	37


¹	There were a minimal amount of stock options granted in 2015. During 2015, the Company stopped granting stock options.

During the six months ended June 30, 2016, the Company granted 0.5 million shares of restricted stock and unit awards, which had a weighted average grant date fair value of $99.43 per share. Total unrecognized compensation expense related to unvested restricted stock and unit awards as of June 30, 2016 was $81 million, which is expected to be recognized over a weighted average period of 1.9 years.

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

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