Stock-Based Compensation

9 Months Ended

Sep. 30, 2019

Share-based Payment Arrangement [Abstract]

The Company recorded stock-based compensation expense of $6 million and $7 million ($5 million and $5 million, net of tax) during the three months ended September 30, 2019 and 2018, respectively, and $18 million ($14 million, net of tax) during the nine months ended September 30, 2019 and 2018, in each period.

The activity related to restricted stock units (“RSUs”) 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, 2019		838		$	38.67
		Granted ^(a)	606		34.17
		Vested ^(b)	(502	)	36.00
		Forfeited	(56	)	38.76
	Outstanding and expected to vest at September 30, 2019 ^(c)		886		$	37.10	1.3	$	25
Performance-based and market-based RSUs
	Outstanding at January 1, 2019		1,169		$	35.14
		Granted ^(a)	570		34.56
		Vested	—		—
		Forfeited	(430	)	24.85
	Outstanding at September 30, 2019		1,309		$	38.27	1.6	$	37
	Outstanding and expected to vest at September 30, 2019 ^(c)		524		$	39.31	1.9	$	15

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^(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. The weighted-average fair value of time-based RSUs and performance-based RSUs granted during the nine months ended September 30, 2018 was $48.41 and $48.52, respectively.


^(b)	The total fair value of RSUs vested during September 30, 2019 and 2018 was $18 million and $20 million, respectively.


^(c)	Aggregate unrecognized compensation expense related to time-based RSUs and performance-based RSUs amounted to $36 million and will be recognized over a weighted average vesting period of 1.5 years.

The 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, 2019		57		$	0.79	0.1	$	1
	Granted	—		—			—
	Exercised ^(a)	(57	)	0.79			1
	Forfeited/expired	—		—			—
Outstanding and exercisable at September 30, 2019		—		$	—	—	$	—

__________

^(a)

Stock options exercised during the nine months ended September 30, 2018 had an aggregate intrinsic value of $8 million and the cash received was $2 million.