XML 60 R37.htm IDEA: XBRL DOCUMENT v3.25.0.1
Stock Incentive and Purchase Plans (Tables)
 12 Months Ended
Dec. 31, 2024
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)202420232022
Cost of products sold$14 $12 $12 
Selling, general and administrative expenses206 179 167 
Research and development expenses46 42 41 
 266 233 220 
Income tax (benefit) expense(39)(35)(32)
 $227 $198 $188 
Net impact per common share - basic$0.15 $0.14 $0.13 
Net impact per common share - assuming dilution$0.15 $0.14 $0.13 
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,
 202420232022
Options granted (in thousands)
2,443 2,934 3,287 
Weighted-average exercise price$65.00 $47.43 $44.02 
Weighted-average grant-date fair value$23.30 $16.83 $13.64 
Black-Scholes Assumptions   
Expected volatility24 %26 %28 %
Expected term (in years, weighted)
6.36.36.1
Risk-free interest rate4.16%-4.20%3.62%-4.75%1.42%-3.87%
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, 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 
Granted3,322 66 
Vested(1)(3,717)43 
Forfeited(349)50 
Balance as of December 31, 20248,544 $54 
(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,
202420232022
Shares issued or to be issued (in thousands)
2,409 2,623 2,850 
Range of purchase prices$49.16 -$64.95 $39.11 -$45.51 $31.68 -$32.31 
Expense recognized (in millions)
$34 $29 $28 
Schedule of Unrecognized Compensation
We expect to recognize the following future expense for awards outstanding as of December 31, 2024:
 Unrecognized
 Compensation Cost
(in millions) (1)
Weighted Average Remaining
Vesting Period
(in years)
Stock options$44  
Non-vested stock awards227  
 $271 1.7
(1) Amounts presented represent compensation cost, net of estimated forfeitures.
Market-based awards, valuation assumptions
The aggregate fair value of these awards as determined based on Monte Carlo simulations as of the respective grant dates, and the related assumptions used in the valuations, are as follows:
 202420232022
AwardsAwardsAwards
Fair value (in millions)
$16 $13 $12 
Stock price on date of grant$64.99 $47.28 $44.19 
Measurement period (in years)
2.92.92.9
Risk-free rate4.23 %4.31 %1.71 %
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, 2024:
2024 ONSG
2023 ONSG
2022 AFCF
Fair value, net of forfeitures to date (in millions)
$22 $20 $7 
Achievement of target payout(1)
200 %200 %88 %
Stock price used in determining fair value$64.99 $47.28 $46.27 
(1) Company's estimate of target payout as of December 31, 2024.
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, 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 
Granted2,443 65 
Exercised(3,866)28 
Cancelled/forfeited(243)50 
Outstanding as of December 31, 202419,183 $41 5.7$931 
Exercisable as of December 31, 202412,660 35 4.5688 
Expected to vest as of December 31, 20246,313 52 8.1236 
Total vested and expected to vest as of December 31, 202418,972 $41 5.7$924