Stock-Based Compensation

3 Months Ended

Mar. 31, 2024

Share-Based Payment Arrangement [Abstract]

We recorded stock-based compensation expense of $7 million and $8 million ($5 million and $6 million, net of tax) during the three months ended March 31, 2024 and 2023, respectively.

As part of our declaration and payment of a special cash dividend in December 2023, we granted additional restricted stock units (“RSUs”) to our award holders with unvested shares as a dividend equivalent, which has been deferred until, and will not be paid unless, the shares of stock underlying the award vest.

The activity related to 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, 2024		290	$	161.87
		Granted (a)	120	113.10
		Vested (b)	(90)	125.57
		Forfeited	(1)	180.27
	Outstanding and expected to vest at March 31, 2024 (c)		319	$	153.71	1.6	$	39
Performance-based RSUs
	Outstanding at January 1, 2024		411	$	128.77
		Granted (a)	144	113.10
		Vested (b)	(222)	68.54
		Forfeited	(1)	154.07
	Outstanding at March 31, 2024		332	$	162.12	2.1	$	41
	Outstanding and expected to vest at March 31, 2024 (c)		199	$	156.64	2.1	$	24

________

(a)Reflects the maximum number of stock units assuming achievement of all performance- 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 three months ended March 31, 2023 was $208.84.

(b)The total fair value of RSUs vested during the three months ended March 31, 2024 and 2023 was $27 million and $17 million, respectively.

(c)Aggregate unrecognized compensation expense related to time-based RSUs and performance-based RSUs amounted to $57 million and will be recognized over a weighted average vesting period of 1.8 years.