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Stock-Based Compensation (Tables)
 12 Months Ended
Dec. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Summary of Share-Based Payment Award Stock Options Valuation Assumptions
The weighted average assumptions used in the Monte Carlo simulation model to calculate the fair value of the Company’s stock unit awards are outlined in the table below.
 
2016
 
2015
 
2014
Expected volatility of stock price
46%
 
37%
 
40%
Risk-free interest rate
0.98%
 
0.74%
 
0.83%
Valuation period
3 years
 
3 years
 
3 years
Dividend yield
0%
 
0%
 
0%
Annual Activity of RSUs
Annual activity related to stock units and cash units, consisted of (in thousands of shares):
 
 
 Time-Based RSUs
 
Performance-Based and Market Based RSUs
 
Cash Unit Awards
 
 
Number of Shares
 
Weighted
Average
Grant Date
Fair Value
 
Number of Shares
 
Weighted
Average
Grant Date
Fair Value
 
Number of Units
 
Weighted
Average
Grant Date
Fair Value
Outstanding at January 1, 2016
819

 
$
43.34

 
941

 
$
35.18

 
111

 
$
18.04

 
Granted (a)
587

 
25.92

 
528

 
23.33

 
—

 
—

 
Vested (b)
(491
)
 
38.17

 
(487
)
 
25.13

 
(111
)
 
18.04

 
Forfeited/expired
(37
)
 
37.47

 
(59
)
 
28.58

 
—

 
—

Outstanding at December 31, 2016 (c)
878

 
$
34.83

 
923

 
$
34.11

 
—

 
$
—

__________
(a) 
Reflects the maximum number of stock units assuming achievement of all performance-, market- and time-vesting criteria and does not include those for non-employee directors, which are discussed separately below. The weighted-average fair value of time-based RSUs and performance-based and market-based RSUs granted in 2015 was $54.70 and $55.51, respectively, and the weighted-average fair value of time-based RSUs and performance-based and market-based RSUs granted in 2014 was $42.05 and $42.03, respectively.
(b) 
The total fair value of RSUs vested during 2016, 2015 and 2014 was $31 million, $25 million and $15 million, respectively. The total grant date fair value of cash units vested during the years 2016 and 2015 was $2 million, in each period.
(c) 
The Company’s outstanding time-based RSUs and performance-based and market-based RSUs had aggregate intrinsic value of $32 million and $34 million, respectively. Aggregate unrecognized compensation expense related to time-based RSUs and performance-based and market-based RSUs amounted to $26 million and will be recognized over a weighted average vesting period of 1.1 years. The Company assumes that substantially all outstanding awards will vest over time.
Summary of Share Based Compensation Shares Authorized Under Stock Option Plans by Exercise Price Range
The annual stock option activity consisted of (in thousands of shares):
 
 
Number of Options
 
Weighted
Average
Exercise
Price
 
Aggregate Intrinsic Value (in millions)
 
Weighted
Average
Remaining Contractual Term (years)
Outstanding at January 1, 2016
827

 
$
2.87

 
$
28

 
3.3
 
Granted (a)
—

 
—

 


 
 
 
Exercised (b)
(17
)
 
0.79

 
1

 
 
 
Forfeited/expired
—

 
—

 


 
 
Outstanding and exercisable at December 31, 2016
810

 
$
2.91

 
$
27

 
2.3
__________ 
(a) 
No stock options were granted during 2015 or 2014.
(b) 
Stock options exercised during 2015 and 2014 had intrinsic values of $1 million and $6 million, respectively, and the cash received from the exercise of options was insignificant in 2016, 2015 and 2014.