XML 58 R49.htm IDEA: XBRL DOCUMENT v3.10.0.1
Stock-Based Compensation (Tables)
 12 Months Ended
Dec. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stock-Based Compensation Expense by Form of Award
The Company’s stock-based compensation expense by form of award, including stock-based compensation recorded in discontinued operations related to Vertex Aerospace and NSS, is presented in the table below.
 
Year Ended December 31,
 
2017
 
2016
 
2015
 
(in millions)
Stock options
$
7

 
$
10

 
$
9

Restricted stock units
43

 
35

 
38

Performance units
7

 
4

 
2

Total before income taxes
57

 
49

 
49

Income taxes
(12
)
 
(18
)
 
(18
)
Total after income taxes
45

 
31

 
31

Less: Stock-based compensation recorded in discontinued operations, net of income taxes
1

 
1

 
1

Stock-based compensation recorded in continuing operations, net of income taxes
$
44

 
$
30

 
$
30
Company's Stock Option Activity and Changes
The table below presents a summary of the Company’s stock option activity at December 31, 2017 and changes during the year then ended.
 
Number of Options
 
Weighted Average Exercise Price
 
Weighted Average Remaining Contractual Term
 
Aggregate Intrinsic Value
 
(in thousands)
 
 
 
(in years)
 
(in millions)
Number of shares under option:
 
 
 
 
 
 
 
Outstanding at January 1, 2017
2,847.5

 
$
99.54

 
6.1
 
$150
Options granted
470.5

 
174.53

 
 
 
 
Options exercised
(521.3
)
 
90.13

 
 
 
 
Options forfeited
(97.8
)
 
120.59

 
 
 
 
Outstanding at December 31, 2017
2,698.9

 
$
113.67

 
5.7
 
$227
Vested and expected to vest at December 31, 2017(1)
2,582.5

 
$
110.21

 
5.5
 
$226
Exercisable at December 31, 2017
1,762.4

 
$
95.80

 
4.5
 
$180
__________________
(1) 
Represents outstanding options reduced by expected forfeitures for options not fully vested.
Weighted Average Assumptions in Valuation Model
The weighted average assumptions used in the valuation model are presented in the table below.
 
2017 Grants
 
2016 Grants
 
2015 Grants
Expected holding period (in years)
5.2

 
5.0

 
5.0

Expected volatility
19.9
%
 
21.3
%
 
21.4
%
Expected dividend yield
2.0
%
 
2.8
%
 
2.4
%
Risk-free interest rate
2.0
%
 
1.1
%
 
1.5
%
Company's Nonvested Restricted Stock Unit Awards and Changes
The table below presents a summary of the Company’s nonvested restricted stock unit awards at December 31, 2017 and changes during the year then ended.
 
Number of Shares
 
Weighted Average
Grant Date Fair Value
 
(in thousands)
Nonvested balance at January 1, 2017
977.9

 
$
119.55

Granted
305.6

 
169.23

Vested
(318.4
)
 
114.46

Forfeited
(62.4
)
 
134.56

Nonvested balance at December 31, 2017
902.7

 
$
137.12
Company's Performance Unit Awards Based on Expected Performance
The table below presents a summary of the Company’s performance unit awards based on expected performance at December 31, 2017 and changes during the year then ended.
 
Payable in Shares (EPS)
 
Number of
Units
 
Weighted Average
Grant Date
Fair Value
 
(in thousands)
Outstanding at January 1, 2017
124.7

 
$
120.83

Granted
33.9

 
168.80

Increase due to expected performance
29.7

 
146.89

Vested
(48.4
)
 
129.03

Forfeited
(7.8
)
 
121.06

Outstanding at December 31, 2017
132.1

 
$
135.99