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Stock Incentive and Purchase Plans (Tables)
 12 Months Ended
Dec. 31, 2023
Stock Incentive and Purchase Plans [Abstract]  
Schedule of Employee Service Share-based Compensation, Allocation of Recognized
The following presents the impact of stock-based compensation on our consolidated statements of operations:
 Year Ended December 31,
(in millions, except per share data)202320222021
Cost of products sold$12 $12 $11 
Selling, general and administrative expenses179 167 147 
Research and development expenses42 41 36 
 233 220 194 
Income tax (benefit) expense(35)(32)(29)
 $198 $188 $165 
Net impact per common share - basic$0.14 $0.13 $0.12 
Net impact per common share - assuming dilution$0.14 $0.13 $0.12 
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions
We use the Black-Scholes option-pricing model to calculate the grant-date fair value of stock options granted to employees under our stock incentive plans. We calculated the fair value for options granted using the following estimated weighted-average assumptions:
 Year Ended December 31,
 202320222021
Options granted (in thousands)
2,934 3,287 3,822 
Weighted-average exercise price$47.43 $44.02 $37.69 
Weighted-average grant-date fair value$16.83 $13.64 $10.77 
Black-Scholes Assumptions   
Expected volatility26 %28 %29 %
Expected term (in years, weighted)
6.36.15.9
Risk-free interest rate3.62%-4.75%1.42%-3.87%0.66%-1.20%
Schedule of Share-based Compensation, Restricted Stock Units Award Activity Information related to non-vested stock awards is as follows:
Non-Vested
Stock Award Units
(in thousands)
Weighted Average
Grant-Date
Fair Value
Balance as of December 31, 20209,987 $34 
Granted4,240 39 
Vested(1)
(3,823)31 
Forfeited(658)36 
Balance as of December 31, 20219,745 $37 
Granted3,854 45 
Vested(1)
(3,482)36 
Forfeited(680)44 
Balance as of December 31, 20229,438 $41 
Granted3,958 49 
Vested(1)
(3,624)39 
Forfeited(485)44 
Balance as of December 31, 20239,287 $45 
(1) The number of shares vested includes shares withheld on behalf of employees to satisfy statutory tax withholding requirements.
Schedule of Share-based Compensation, Employee Stock Purchase Plan, Activity
Information related to shares issued or to be issued in connection with the employee stock purchase plan based on employee contributions and the range of purchase prices is as follows:
Year Ended December 31,
202320222021
Shares issued or to be issued (in thousands)
2,623 2,850 2,578 
Range of purchase prices$39.11 -$45.51 $31.68 -$32.31 $29.98 -$36.11 
Expense recognized (in millions)
$29 $28 $24 
Schedule of Unrecognized Compensation
We expect to recognize the following future expense for awards outstanding as of December 31, 2023:
 Unrecognized
 Compensation Cost
(in millions) (1)
Weighted Average Remaining
Vesting Period
(in years)
Stock options$40  
Non-vested stock awards203  
 $243 1.7
(1) Amounts presented represent compensation cost, net of estimated forfeitures.
Market-based awards, valuation assumptions
We determined the fair value of the market-based RSU awards to be approximately $13 million for 2023, $12 million for 2022 and $11 million for 2021. We determined these fair values based on Monte Carlo simulations as of the date of grant, utilizing the following assumptions:
 202320222021
AwardsAwardsAwards
Stock price on date of grant$47.28 $44.19 $37.50 
Measurement period (in years)
2.92.92.9
Risk-free rate4.31 %1.71 %0.20 %
Free Cash Flow Performance-based DSU Awards, Fair Value Assumptions
The following table presents our assumptions used in determining the fair value of our ONSG and AFCF awards currently expected to vest as of December 31, 2023:
2023 ONSG2022 AFCF2021 AFCF
Fair value, net of forfeitures to date (in millions)
$20 $7 $12 
Achievement of target payout(1)
200 %88 %131 %
Stock price used in determining fair value$47.28 $46.27 $42.48 
(1) Company's estimate of target payout as of December 31, 2023.
Share-based Compensation, Stock Options, Activity
Information related to stock options under stock incentive plans are as follows:
Stock Options
(in thousands)
Weighted
Average
Exercise Price
Weighted Average
Remaining
Contractual Life
(in years)
Aggregate
Intrinsic
Value
(in millions)
Outstanding as of December 31, 202023,122 $24 
Granted3,822 38 
Exercised(4,796)13 
Cancelled/forfeited(699)26 
Outstanding as of December 31, 202121,448 $29 
Granted3,287 44 
Exercised(2,745)17 
Cancelled/forfeited(502)34 
Outstanding as of December 31, 202221,489 $32 
Granted2,934 47 
Exercised(3,325)25 
Cancelled/forfeited(249)44 
Outstanding as of December 31, 202320,850 $36 5.8462 
Exercisable as of December 31, 202313,532 31 4.5359 
Expected to vest as of December 31, 20237,052 44 8.199 
Total vested and expected to vest as of December 31, 202320,584 $36 5.8$458