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Stock-Based Compensation (Tables)
 12 Months Ended
Dec. 31, 2017
Stock-Based Compensation [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