STOCK-BASED COMPENSATION (Tables)

12 Months Ended

Dec. 31, 2021

STOCK-BASED COMPENSATION

Stock-based compensation cost associated with employees

	Year Ended December 31
(Dollars in millions)	2021		2020		2019
Cost of services	$	28	$	26	$	15
Selling, general and administrative expense		44		37		35
Pretax stock-based compensation cost	$	71	$	64	$	51
Income tax benefits		(13)		(14)		(12)
Stock-based compensation cost, net of tax	$	58	$	49	$	40

Summary of restricted stock units activity

					Market-Conditioned
	RSUs				Performance Awards
			Weighted-				Weighted-
	Number		Average		Number		Average
	of Units		Grant-Date		of Units		Grant-Date
	(in millions)		Fair Value		(in millions)		Fair Value
Balance at December 31, 2020		—	$	—		—	$	—
Awards converted from IBM programs		8.5		28.78		—		—
Awards granted		2.0		18.20		1.8		15.14
Awards vested		(0.1)		29.30		—		—
Awards canceled/ forfeited		(0.2)		21.71		—		—
Balance at December 31, 2021		10.2	$	26.82		1.8	$	15.14

Summary of market-conditioned performance awards

The following table summarizes RSU, market-conditioned performance award and stock option activities:

					Market-Conditioned
	RSUs				Performance Awards
			Weighted-				Weighted-
	Number		Average		Number		Average
	of Units		Grant-Date		of Units		Grant-Date
	(in millions)		Fair Value		(in millions)		Fair Value
Balance at December 31, 2020		—	$	—		—	$	—
Awards converted from IBM programs		8.5		28.78		—		—
Awards granted		2.0		18.20		1.8		15.14
Awards vested		(0.1)		29.30		—		—
Awards canceled/ forfeited		(0.2)		21.71		—		—
Balance at December 31, 2021		10.2	$	26.82		1.8	$	15.14

Summary of option activity

	Stock Options
			Weighted-		Weighted-				Weighted-
	Number		Average		Average		Intrinsic		Average
	of Units		Grant-Date		Exercise Price		Value		Contractual
	(in millions)		Fair Value		per Share		per Share		Term (in years)
Balance at December 31, 2020		—	$	—	$	—	$	—		—
Awards converted from IBM programs		—		NM		8.28		9.82		NM
Awards granted		3.8		6.54		17.78		—		6.3
Awards vested		—		—		—		—		—
Awards canceled/forfeited		—		—		—		—		—
Balance at December 31, 2021		3.8	$	6.56	$	17.76	$	—		6.3

NM – not meaningful; stock options from former Parent were fully vested in 2019.