Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2022

Share-Based Payment Arrangement [Abstract]

Summary of Share-Based Compensation Expense Income Tax Benefit Awards Issued Under Incentive Plans

Stock-based compensation expense of awards issued under the Company’s incentive plans, and the income tax benefit of awards vested and exercised, are as follows:

	Year Ended December 31,
(In millions)	2022		2021		2020
Restricted stock units - employees and non-employee directors	$	31	$	6	$	2
Restricted stock awards	20		6		—
Performance share awards (1)	22		41		40
Deferred performance shares	2		1		(1)
Dividend equivalents	11		3		2
Total stock-based compensation expense	$	86	$	57	$	43
Income tax benefit	$	20	$	24	$	10

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(1) In accordance with the Merger Agreement, the Company recognized approximately $18 million of stock-based compensation expense in the fourth quarter of 2021 associated with the acceleration of vesting of certain performance share awards. In the third quarter of 2022, the Company recognized approximately $7 million of stock-based compensation expense associated with the acceleration of vesting of certain employee performance awards.

Summary of Restricted Stock Award / Unit Activity

The following table is a summary of restricted stock unit award activity:

	Year Ended December 31, 2022
	Shares	Weighted- Average Grant Date Fair Value per Unit
Outstanding at beginning of period	1,286,471	$	21.00
Granted	2,249,405	24.81
Vested	(316,322)	22.75
Forfeited	(31,410)	25.25
Outstanding at end of period	3,188,144	$	23.47

The following table is a summary of restricted stock unit award activity:

	Year Ended December 31, 2022
	Shares	Weighted- Average Grant Date Fair Value per Unit
Outstanding at beginning of period	245,898	$	20.41
Granted	45,472	35.19
Vested	—	—
Forfeited	—	—
Outstanding at end of period	291,370	$	22.72

The following table is a summary of restricted stock award activity:

	Year Ended December 31, 2022
	Shares	Weighted- Average Grant Date Fair Value per Share
Outstanding at beginning of period	3,019,183	$	22.25
Granted	—	—
Vested	(813,812)	22.25
Forfeited	(136,397)	22.25
Outstanding at end of period	2,068,974	$	22.25

Schedule of Performance Share Awards Activity

The following table is a summary of activity for Employee Performance Share Awards:

	Year Ended December 31, 2022
	Shares	Weighted- Average Grant Date Fair Value per Share
Outstanding at beginning of period	1,858,104	$	18.93
Granted	—	—
Vested	(1,775,790)	18.88
Forfeited	(9,000)	17.20
Outstanding at end of period	73,314	$	20.46

The following table is a summary of activity for the TSR Performance Share Awards:

	Year Ended December 31, 2022
	Shares	Weighted- Average Grant Date Fair Value per Unit (1)
Outstanding at beginning of period	—	$	—
Granted	1,161,599	17.89
Vested	—	—
Forfeited	—	—
Outstanding at end of period	1,161,599	$	17.89

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(1)The grant date fair value figures in this table represent the fair value of the equity component of the performance share awards.

Assumptions Used to Determine Grant Date Fair Value of Equity and Liability Component

The following table reflects certain balance sheet information of outstanding TSR Awards:

	December 31,
(In millions)	2022		2021
Other non-current liabilities	$	3	$	—

The following table reflects certain cash payments related to the vesting of TSR Awards:

	Year Ended December 31,
(In millions)	2022		2021		2020
Cash payments for TSR awards	$	—	$	—	$	14

The following assumptions were used to determine the grant date fair value of the equity component of the TSR Performance Share Awards for the respective periods:

	Year Ended December 31,
	2022			2021			2020
Fair value per performance share award granted during the period	$	9.01		$	16.07		$	13.79
Assumptions
Stock price volatility	42.6		%	39.8		%	29.5		%
Risk free rate of return	4.4		%	0.2		%	1.4		%

The following assumptions were used to determine the fair value of the liability component of the TSR Performance Share Awards for the respective periods:

	December 31,
	2022		2021				2020
Fair value per performance share award at the end of the period	$14.92		$	—			$10.37 - $10.81
Assumptions
Stock price volatility	42.6	%	—			%	42.4% - 52.4%
Risk free rate of return	4.4	%	—		%		0.1%

The following table reflects the aggregate fair value of awards and units that vested during the respective period:

	December 31,
(In millions)	2022		2021		2020
Restricted stock units - employees and non-employee directors	$	9	$	11	$	—
Restricted stock awards	22		7		—
Performance share awards	45		84		25
	$	76	$	102	$	25

The following table reflects the unrecognized stock-based compensation and the related weighted-average recognition period associated with the unvested awards and units as of December 31, 2022:

	Unrecognized Stock-Based Compensation (In Millions)		Weighted-Average Period For Recognition (Years)
Restricted stock units - employees and non-employee directors	$	48	2.2
Restricted stock awards	21		1.4
Performance share awards	15		1.9
	$	84

Summary of Option Activity

The following table is a summary of activity for the Stock Option Awards:

	Year Ended December 31, 2022
	Shares	Weighted- Average Strike Price
Outstanding at beginning of period	1,355,352	$	17.35
Granted	—	—
Exercised	(780,606)	16.29
Forfeited or Expired	(38,137)	28.67
Outstanding at end of period(1)	536,609	$	18.08
Exercisable at end of period(1)	536,609	$	18.08

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(1)The intrinsic value of a stock option is the amount by which the current market value of the underlying stock exceeds the exercise price of the stock option. The aggregate intrinsic value of stock options outstanding and exercisable at December 31, 2022 was $4 million and $4 million, respectively. The weighted-average remaining contractual term is 2.6 years.