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Stock-Based Compensation (Tables)
 12 Months Ended
Dec. 31, 2018
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,
 
2018
 
2017
 
2016
 
(in millions)
Stock options
$
7

 
$
7

 
$
10

Restricted stock units
43

 
43

 
35

Performance units
10

 
7

 
4

Total before income taxes
60

 
57

 
49

Income taxes
(13
)
 
(12
)
 
(18
)
Total after income taxes
47

 
45

 
31

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

 
1

 
1

Stock-based compensation recorded in continuing operations, net of income taxes
$
47

 
$
44

 
$
30
Company's Stock Option Activity and Changes
The table below presents a summary of the Company’s stock option activity at December 31, 2018 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, 2018
2,698.9

 
$
113.67

 
5.7
 
$
227

Options granted
221.9

 
208.92

 
 
 
 
Options exercised
(1,533.4
)
 
97.49

 
 
 
 
Options forfeited
(175.7
)
 
147.37

 
 
 
 
Outstanding at December 31, 2018
1,211.7

 
$
146.70

 
6.4
 
$
42

Vested and expected to vest at December 31, 2018(1)
1,205.6

 
$
146.48

 
6.4
 
$
42

Exercisable at December 31, 2018
666.1

 
$
119.03

 
4.7
 
$
37

__________________
(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.
 
2018 Grants
 
2017 Grants
 
2016 Grants
Expected holding period (in years)
5.2

 
5.2

 
5.0

Expected volatility
19.8
%
 
19.9
%
 
21.3
%
Expected dividend yield
1.8
%
 
2.0
%
 
2.8
%
Risk-free interest rate
2.7
%
 
2.0
%
 
1.1
%
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, 2018 and changes during the year then ended.
 
Number of Shares
 
Weighted Average
Grant Date Fair Value
 
(in thousands)
 
 
Nonvested balance at January 1, 2018
902.7

 
$
137.12

Granted
317.9

 
205.73

Vested
(320.7
)
 
137.00

Forfeited
(86.2
)
 
142.21

Nonvested balance at December 31, 2018
813.7

 
$
163.44
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, 2018 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, 2018
132.1

 
$
135.99

Granted
22.1

 
209.91

Increase due to expected performance
25.3

 
38.96

Vested
(57.5
)
 
116.20

Forfeited
(27.0
)
 
133.41

Outstanding at December 31, 2018
95.0

 
$
140.14