XML 51 R32.htm IDEA: XBRL DOCUMENT v3.8.0.1
Stock-Based Compensation (Tables)
 12 Months Ended
Dec. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Schedule of Number of Common Shares Reserved for Issuance
The number of common shares reserved for issuance are as follows: 
(in millions)
December 31,
 
2017
 
2016
Shares available for granting under the 2002 Plan
33.8
 
33.5
Options outstanding
2.1
 
3.8
Total shares reserved for issuance 1
35.9
 
37.3
1
Shares reserved for issuance under the Director Deferred Stock Ownership Plan are not included in the total, but are less than 0.1 million.
Schedule of Stock-based Compensation Expense
Stock-based compensation expense and the corresponding tax benefit are as follows: 
(in millions)
Year Ended December 31,
 
2017
 
2016
 
2015
Stock option expense
$
3

 
$
7

 
$
14

Restricted stock and unit awards expense
96

 
69

 
64

Total stock-based compensation expense
$
99

 
$
76

 
$
78

 
 
 
 
 
 
Tax benefit
$
38

 
$
29

 
$
29
Schedule of Assumptions Used in Valuing the Options Granted
We use a lattice-based option-pricing model to estimate the fair value of options granted. The following assumptions were used in valuing the options granted: 
 
Year Ended
 
December 31, 2015
Risk-free average interest rate
0.2 - 1.9%

Dividend yield
1.4%

Volatility
21 - 39%

Expected life (years)
6.3

Weighted-average grant-date fair value per option
$
27.57
Schedule of Stock Option Activity
Stock option activity is as follows: 
(in millions, except per award amounts)
Shares

Weighted average exercise price

Weighted-average remaining years of contractual term

Aggregate intrinsic value
Options outstanding as of December 31, 2016
3.8

 
$
43.36

 
 
 
 
Exercised
(1.7
)
 
$
113.04

 
 
 
 
Forfeited and expired 1
—

 
$
72.35

 
 
 
 
Options outstanding as of December 31, 2017
2.1

 
$
44.09

 
3.5
 
$
270

Options exercisable as of December 31, 2017
2.1

 
$
44.08

 
3.5
 
$
270

1 There are less 0.1 million shares forfeited and expired.
(in millions, except per award amounts)
Shares

Weighted-average grant-date fair value
Nonvested options outstanding as of December 31, 2016
0.2

 
$
23.42

Vested
(0.2
)
 
$
23.40

Forfeited 1
—

 
$
24.22

Nonvested options outstanding as of December 31, 2017
—

 
$
27.52

Total unrecognized compensation expense related to nonvested options 2
$
—

 
 
Weighted-average years to be recognized over
0.1

 
 
1 
There are less than 0.1 million shares forfeited.
2 
There is less than $1 million of unrecognized compensation expense related to nonvested options.
Schedule of Stock Option Exercises
Information regarding our stock option exercises is as follows: 
(in millions)
Year Ended December 31,
 
2017
 
2016
 
2015
Net cash proceeds from the exercise of stock options
$
75

 
$
88

 
$
86

Total intrinsic value of stock option exercises
$
118

 
$
95

 
$
94

Income tax benefit realized from stock option exercises
$
64

 
$
41

 
$
49
Schedule of Restricted Stock and Unit Activity
Restricted stock and unit activity for performance and non-performance awards is as follows: 
(in millions, except per award amounts)
Shares
 
Weighted-average grant-date fair value
Nonvested shares as of December 31, 2016
1.0

 
$
106.31

Granted
0.8

 
$
147.12

Vested
(1.0
)
 
$
156.16

Forfeited 1
—

 
$
107.96

Nonvested shares as of December 31, 2017
0.8

 
$
124.91

Total unrecognized compensation expense related to nonvested awards
$
66

 
 
Weighted-average years to be recognized over
1.6

 
 
1 
There are less than 0.1 million shares forfeited.

 
Year Ended December 31,
 
2017
 
2016
 
2015
Weighted-average grant-date fair value per award
$
147.12

 
$
93.01

 
$
77.06

Total fair value of restricted stock and unit awards vested
$
147

 
$
99

 
$
155

Tax benefit relating to restricted stock activity
$
36

 
$
26

 
$
24