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Employee Stock Compensation Plans (Tables)
12 Months Ended
Dec. 31, 2019
Share-based Payment Arrangement [Abstract]  
Share-based Payment Arrangement, Cost by Plan [Table Text Block] As of December 31, 2019, the Company’s stock-based compensation consisted of restricted stock units, employee stock purchase plan and stock options. The Company recorded stock-based compensation expense for the years ended December 31 as follows:
In millions
2019
 
2018
 
2017
Restricted stock units
$
94

 
$
65

 
$
73

Employee stock purchase plan
4

 
4

 
4

Stock options
9

 
4

 

Stock-based compensation expense
107

 
73

 
77

Tax benefit
(12)

 
(10)

 
(22
)
Total stock-based compensation (net of tax)
$
95

 
$
63

 
$
55


Share-based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity [Table Text Block]
The following table reports restricted stock unit activity during the year ended December 31, 2019:
Shares in thousands
 
Number of Units
 
Weighted Average Grant-Date Fair Value per Unit
Unvested shares as of January 1
 
5,966

 
$
28.69

Shares granted
 
1,828

 
$
24.31

Shares vested
 
(2,907
)
 
$
26.68

Shares forfeited
 
(431
)
 
$
28.74

Unvested shares as of December 31
 
4,456

 
$
28.18



Stock-based compensation expense is recognized in the financial statements based upon fair value. The total fair value of units vested and distributed in the form of NCR common stock was $86 million in 2019, $90 million in 2018, and $87 million in 2017. As of December 31, 2019, there was $78 million of unrecognized compensation cost related to unvested restricted stock unit grants. The unrecognized compensation cost is expected to be recognized over a remaining weighted-average period of 0.8 years. The weighted average grant date fair value for restricted stock unit awards granted in 2018 and 2017 was $26.25 and $46.95, respectively.

The following table represents the composition of restricted stock unit grants in 2019:
Shares in thousands
 
Number of Units
 
Weighted Average Grant-Date Fair Value
Service-based units
 
894

 
$
27.02

Performance-based units
 
934

 
$
21.72

Total restricted stock units
 
1,828

 
$
24.31


Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] During the years ended December 31, 2019 and 2018, the Company granted stock options and the weighted average fair value of option grants was estimated based on the below weighted average assumptions, which was $8.07 and $9.80, respectively. The stock options were granted with a 7 year contractual term that will vest over 4 years.

 
For the year ended December 31, 2019
For the year ended December 31, 2018
Dividend yield


Risk-free interest rate
2.50
%
2.50
%
Expected volatility
34.79
%
34.88
%
Expected holding period - years
3.9 years

3.8 years


Share-based Payment Arrangement, Option, Activity [Table Text Block]
The following table summarizes the Company’s stock option activity for the year ended December 31, 2019:
Shares in thousands
 
Shares Under Option
 
Weighted Average Exercise Price per Share
 
Weighted Average Remaining Contractual Term (in years)
 
Aggregate Intrinsic Value
(in millions)
Outstanding as of January 1
 
2,606

 
$
29.08

 
 
 
 
Granted
 
2,131

 
$
26.45

 
 
 
 
Exercised
 
(99
)
 
$
16.07

 
 
 
 
Forfeited or expired
 
(79
)
 
$
32.57

 
 
 
 
Outstanding as of December 31
 
4,559

 
$
28.08

 
5.62
 
$
32.30

Fully vested and expected to vest as of December 31
 
3,860

 
$
28.09

 
5.79
 
$
27.30

Exercisable as of December 31
 
699

 
$
27.99

 
4.67
 
$
5.01