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Stock-Based Compensation (Tables)
 12 Months Ended
Dec. 31, 2017
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
Expected volatility of stock price
 
 
46%
 
37%
Risk-free interest rate
 
 
0.98%
 
0.74%
Valuation period
 
 
3 years
 
3 years
Dividend yield
 
 
0%
 
0%
Annual Activity of RSUs
Annual activity related to stock units consisted of (in thousands of shares):
 
 
 
Number of Shares
 
Weighted
Average
Grant Date
Fair Value
 
Weighted Average Remaining Contractual Term (years)
 
Aggregate Intrinsic Value (in millions)
Time-based RSUs
 
 
 
 
 
 
 
 
Outstanding at January 1, 2017
878

 
$
34.83

 
 
 
 
 
 
Granted (a)
914

 
35.32

 
 
 
 
 
 
Vested (b)
(470
)
 
37.12

 
 
 
 
 
 
Forfeited
(162
)
 
33.07

 
 
 
 
 
Outstanding and expected to vest at December 31, 2017 (c)
1,160

 
$
34.54

 
0.9
 
$
51

Performance-based and market-based RSUs
 
 
 
 
 
 
 
 
Outstanding at January 1, 2017
923

 
$
34.11

 
 
 
 
 
 
Granted (a)
572

 
35.21

 
 
 
 
 
 
Vested (b)
(146
)
 
36.55

 
 
 
 
 
 
Forfeited
(355
)
 
37.82

 
 
 
 
 
Outstanding at December 31, 2017
994

 
$
33.06

 
1.4
 
$
44

 
Outstanding and expected to vest at December 31, 2017 (c)
97

 
$
36.64

 
2.2
 
$
4

__________
(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 2016 was $25.92 and $23.33, respectively, and 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.
(b) 
The total fair value of RSUs vested during 2017, 2016 and 2015 was $23 million, $31 million and $25 million, respectively. The total grant date fair value of cash units vested during the year 2016 was $2 million.
(c) 
Aggregate unrecognized compensation expense related to time-based RSUs and performance-based and market-based RSUs amounted to $31 million and will be recognized over a weighted average vesting period of 1.0 year.
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
 
Weighted
Average
Remaining Contractual Term (years)
 
Aggregate Intrinsic Value (in millions)
Outstanding at January 1, 2017
810

 
$
2.91

 
2.3
 
$
27

 
Granted (a)
—

 
—

 

 
—

 
Exercised (b)
(537
)
 
0.79

 

 
21

 
Forfeited/expired
—

 
—

 

 


Outstanding and exercisable at December 31, 2017
273

 
$
7.08

 
1.7
 
$
10

__________ 
(a) 
No stock options were granted during 2016 or 2015.
(b) 
Stock options exercised during 2016 and 2015 had intrinsic values of $1 million in each period, and the cash received from the exercise of options was insignificant in 2017, 2016 and 2015.