XML 123 R11.htm IDEA: XBRL DOCUMENT v3.24.2
STOCK-BASED COMPENSATION
 6 Months Ended
Jun. 30, 2024
Share-Based Payment Arrangement, Noncash Expense [Abstract]  
STOCK-BASED COMPENSATION STOCK-BASED COMPENSATION
Presented below is a summary of the stock-based compensation cost and associated tax benefit included in the accompanying consolidated statements of operations:
Three Months Ended June 30,
Six Months Ended June 30,
2024202320242023
Stock-based compensation cost$56 $50 $109 $97 
Tax benefit$12 $12 $24 $22 
During the first half of 2024, the Company granted 0.2 million employee stock options, which had a weighted average grant date fair value of $120.42 per share. The Company also granted 0.5 million shares of restricted stock in the first half of 2024, which had a weighted average grant date fair value of $372.33 per share. Both the employee stock options and restricted stock generally vest ratably over four years. Additionally, the Company granted 0.2 million shares of performance-based awards whereby the number of shares that ultimately vest are based on the achievement of certain non-market-based performance metrics of the Company over a period of two to four years. The weighted average grant date fair value of these awards was $361.83 per share.
The following weighted average assumptions were used in determining the fair value using the Black-Scholes option-pricing model for options granted in 2024:
Expected dividend yield0.91 %
Expected stock volatility28 %
Risk-free interest rate4.34 %
Expected holding period5.9 years
Unrecognized stock-based compensation expense at June 30, 2024 was $21 million and $328 million for unvested stock options and restricted stock, respectively, which is expected to be recognized over a weighted average period of 1.9 years and 2.7 years, respectively. Additionally, there was $66 million of unrecognized stock-based compensation expense relating to the aforementioned non-market-based performance-based awards, which is expected to be recognized over a weighted average period of 2.5 years.
The following table summarizes information relating to stock option exercises and restricted stock vesting:
Six Months Ended
June 30,
2024
2023
Exercise of stock options:
Proceeds from stock option exercises$34 $21 
Aggregate intrinsic value$43 $44 
Tax benefit realized upon exercise$7 $10 
Number of shares exercised
0.2 0.2 
Vesting of restricted stock:
Fair value of shares vested$176 $147 
Tax benefit realized upon vesting$43 $34 
Number of shares vested0.5 0.5 
Vesting of performance-based restricted stock:
Fair value of shares vested$40 $24 
Tax benefit realized upon vesting$9 $3 
Number of shares vested0.1 0.1