XML 74 R58.htm IDEA: XBRL DOCUMENT v3.24.0.1
Share-Based Compensation (Tables)
 12 Months Ended
Dec. 31, 2023
Share-Based Payment Arrangement [Abstract]  
Valuation assumptions
Year Ended December 31,
202320222021
Dividend yield— %— %— %
Expected volatility25.1 %24.0 %24.2 %
Risk free interest rate4.1 %2.0 %1.0 %
Expected option life6.0 years6.0 years6.0 years
Option activity
A summary of stock option and SAR activity under the Company’s Long Term Incentive and Share Award Plans during 2023 is presented below:
Year Ended December 31, 2023
Number of
Options / SARs		Weighted Average Exercise PriceWeighted Average Contractual TermAggregate Intrinsic Value
Outstanding, beginning of year14,420,901 $28.17 
Granted479,760 $69.24 
Exercised(2,355,729)$20.66 
Forfeited or expired(8,339)$48.38 
Outstanding, end of year12,536,593 $31.14 4.10$541 
Exercisable, end of year11,205,102 $28.68 3.61$511 
Weighted average grant date fair value
Year Ended December 31,
202320222021
Weighted average grant date fair value$23.50 $13.26 $9.22 
Aggregate intrinsic value of Options/SARs exercised (in millions)$116 $113 $47 
Unvested restricted share and unit activity
A summary of restricted share and restricted unit activity under the Company’s Long Term Incentive and Share Award Plans for 2023 is presented below:
Number of Restricted
Common
Shares
Number of Restricted
Unit
Awards
Unvested Shares:
Unvested balance, beginning of year2,165,554 517,293 
Granted678,657 146,534 
Vested(1,281,449)(352,190)
Forfeited(38,157)(5,709)
Unvested balance, end of year1,524,605 305,928 
Weighted Average Grant Date Fair Value:
Unvested balance, beginning of year$40.23 $37.17 
Granted$69.47 $69.20 
Vested$38.37 $34.16 
Forfeited$49.65 $55.55 
Unvested balance, end of year$54.57 $55.63 
Performance shares and units, valuation assumptions
Year Ended December 31,
202320222021
Expected volatility30.4 %38.1 %37.5 %
Risk free interest rate4.6 %1.7 %0.3 %
Unvested performance share and unit activity
Number of Performance
Shares
Number of Performance
Units
Unvested Shares:
Unvested balance, beginning of year1,882,916 39,710 
Granted550,394 18,182 
Performance adjustment (1) (2)(341,420)(2,024)
Vested(207,486)(6,274)
Forfeited(3,708)— 
Unvested balance, end of year1,880,696 49,594 
Weighted Average Grant Date Fair Value:
Unvested balance, beginning of year$43.75 $45.33 
Granted$74.08 $74.31 
Performance adjustment (1) (2)$44.17 $44.17 
Vested$44.17 $44.17 
Forfeited$59.83 $— 
Unvested balance, end of year$52.47 $56.15 
(1)    The performance adjustment represents the difference between the number of performance shares granted and earned, which vested following the end of the performance period. The performance shares were granted at the maximum level of achievement.
(2)    The performance adjustment represents the change in PSUs, which vested following the end of the performance period. The performance units were granted at the target level of achievement.
Share based compensation expense
The following tables present pre-tax and after-tax share-based compensation expense recognized as well as the unrecognized compensation cost associated with unvested awards and the weighted average period over which it is expected to be recognized.
Year Ended December 31,
202320222021
Pre-Tax
Stock options and SARs$11 $12 $12 
Restricted share and unit awards54 50 47 
Performance awards23 22 24 
ESPP4 4 4 
Total$92 $88 $87 
After-Tax
Stock options and SARs$10 $11 $11 
Restricted share and unit awards45 42 39 
Performance awards21 20 22 
ESPP4 4 4 
Total$80 $77 $76 
Unrecognized compensation cost
December 31, 2023
Stock Options and SARsRestricted Common
Shares and Units		Performance Common Shares and Units
Unrecognized compensation cost related to unvested awards$7 $43 $11 
Weighted average recognition period (years)0.670.950.44
Restricted Common Shares And Restricted Units  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Weighted average grant date fair value of restricted stock
The following table presents the weighted average grant date fair value of restricted shares and restricted unit awards granted and the aggregate fair value of restricted shares and unit awards vesting in each year.
Year Ended December 31,
202320222021
Number of restricted shares and restricted unit awards granted 825,191 1,089,393 1,261,773 
Weighted average grant date fair value$69.42 $47.45 $36.12 
Aggregate fair value of vested restricted share and unit awards (in millions)$122 $51 $41 
Performance Common Shares and Units  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Weighted average grant date fair value of restricted stock
The following table presents the weighted average grant date fair values of performance awards granted.
Year Ended December 31,
202320222021
Number of performance awards568,576 690,772 685,104 
Weighted average grant date fair value$74.09 $49.91 $37.38 
Aggregate fair value of vested performance share and unit awards (in millions)$14 $27 $24 
The aggregate intrinsic value of performance units outstanding at December 31, 2023 was $4 million.