Share-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2018

Share-Based Compensation

Schedule of valuation assumptions for stock options

	2018		2017
Expected life (in years)	5.5		5.5
Risk-free interest rate	2.5	%	1.9	%
Expected volatility	19.8	%	22.5	%
Expected dividend yield	1.8	%	1.7	%

Schedule of stock option activity

	Number of Options (in thousands)	Weighted Average Exercise Price per Share		Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value (in millions)
Outstanding as of December 31, 2017	2,095	$	71.81	5.87	$	142
Granted	215		133.61
Exercised	(93)		50.08
Cancelled	(5)		34.36
Outstanding as of March 31, 2018	2,212	$	78.81	6.14	$	112
Exercisable as of March 31, 2018	1,716	$	66.53	5.57	$	107

Schedule of additional information pertaining to stock option activity

	Three Months Ended
	March 31,
(dollars in millions, except per share)	2018		2017
Weighted average grant date fair value of stock options granted (per share)	$	24.01	$	23.90
Total intrinsic value of stock options exercised		8		7

Schedule of restricted unit activity

(RSUs in thousands)	Number of RSUs	Weighted Average Fair Value per Share
Non-vested as of December 31, 2017	387	$	100.13
Granted	104		131.14
Vested	(123)		83.44
Cancelled	(5)		115.51
Non-vested as of March 31, 2018	363	$	114.34

Schedule of components of share based compensation expense

	Three Months Ended
	March 31,
(in millions)	2018		2017
Stock options:
Pre-tax compensation expense	$	1	$	2
Income tax benefit		—		(1)
Stock option expense, net of income taxes		1		1
RSUs:
Pre-tax compensation expense		3		3
Income tax benefit		(1)		(1)
RSUs, net of income taxes		2		2
Performance shares and other share-based awards:
Pre-tax compensation expense		1		2
Income tax benefit		—		(1)
Performance shares and other share-based compensation expense, net of income taxes		1		1
Total share-based  compensation:
Pre-tax compensation expense		5		7
Income tax benefit		(1)		(3)
Total share-based compensation expense, net of income taxes	$	4	$	4