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Stock-Based Compensation (Tables)
 12 Months Ended
Dec. 31, 2016
Stock-Based Compensation [Abstract]  
Stock-Based Compensation by Form of Award
The Company’s stock-based compensation by form of award, including stock-based compensation recorded in discontinued operations relating to the NSS business, is presented in the table below.
 
Year Ended December 31,
2016
2015
2014
(in millions)
Stock options
$
10
 
$
9
 
$
9
 
Restricted stock units
 
35
 
 
38
 
 
40
 
Performance units
 
4
 
 
2
 
 
3
 
Total before income taxes
 
49
 
 
49
 
 
52
 
Income taxes
 
(18
)
 
(18
)
 
(20
)
Total after income taxes
 
31
 
 
31
 
 
32
 
Less: Stock-based compensation recorded in discontinued operations, net of income taxes
 
1
(1)
 
1
 
 
1
 
Stock-based compensation recorded in continuing operations, net of income taxes
$
30
 
$
30
 
$
31
 
 
 
 
(1)
Amount relates to the net impact of share based payment award modification in connection with the sale of NSS, which is further discussed below.
Company's Stock Option Activity and Changes
The table below presents a summary of the Company’s stock option activity at December 31, 2016 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, 2016
 
2,931.5
 
$
92.59
 
 
6.0
 
$
84
 
Options granted
 
617.6
 
 
116.68
 
 
 
 
 
 
 
Options exercised
 
(647.5
)
 
82.78
 
 
 
 
 
 
 
Options forfeited
 
(54.1
)
 
118.82
 
 
 
 
 
 
 
Outstanding at December 31, 2016
 
2,847.5
 
$
99.54
 
 
6.1
 
$
150
 
Vested and expected to vest at December 31, 2016(1)
 
2,835.7
 
$
99.46
 
 
6.1
 
$
149
 
Exercisable at December 31, 2016
 
1,802.0
 
$
87.77
 
 
4.9
 
$
116
 
 
 
 
(1)
Represents outstanding options reduced by expected forfeitures for options not fully vested.
Weighted Average Assumptions in Valuation Model
Changes in assumptions can materially impact the estimated fair value of stock options. The weighted average assumptions used in the valuation model are presented in the table below.
 
2016
Grants
2015
Grants
2014
Grants
Expected holding period (in years)
 
5.0
 
 
5.0
 
 
5.5
 
Expected volatility
 
21.3
%
 
21.4
%
 
24.4
%
Expected dividend yield
 
2.8
%
 
2.4
%
 
2.7
%
Risk-free interest rate
 
1.1
%
 
1.5
%
 
1.7
%
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, 2016 and changes during the year then ended.
 
Number of
Shares
Weighted
Average
Grant Date
Fair Value
(in thousands)
Nonvested balance at January 1, 2016
 
1,171.9
 
$
102.91
 
Granted
 
397.6
 
 
116.72
 
Vested
 
(478.3
)
 
76.83
 
Forfeited
 
(113.3
)
 
111.89
 
Nonvested balance at December 31, 2016
 
977.9
 
$
120.24
 
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, 2016 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, 2016
 
39.6
 
$
121.27
 
Granted
 
51.9
 
 
116.20
 
Increase due to expected performance
 
35.6
 
 
127.14
 
Vested
 
—
 
 
—
 
Forfeited
 
(2.4
)
 
121.72
 
Outstanding at December 31, 2016
 
124.7
 
$
120.83