Share-Based Associate Compensation Plans (Tables)

12 Months Ended

Dec. 31, 2023

Share-based Compensation Arrangement by Share-based Payment Award

Stock Option Information

Below is a summary of option information for the year 2023:

(Dollars in millions, except exercise price. Shares in thousands)	Shares	Weighted- average exercise price		Aggregate intrinsic value		Weighted-average remaining contractual life
Outstanding option shares at January 1, 2023	3,608	$	86.21
Granted	384	125.57
Exercised	(280)	59.98
Forfeited or expired	(65)	86.73
Outstanding option shares at December 31, 2023	3,647	92.36		$	62	5.43 years
Options exercisable at end of period	2,855	$	84.68	$	61	4.59 years

Restricted Stock Unit Information

elow is a summary of service-based and performance-based share information, assuming a target payout for performance-based shares, for the year 2023:

(Shares in thousands)	Service-based shares	Weighted- average grant date fair value		Performance-based shares	Weighted- average grant date fair value
Nonvested at January 1, 2023	523	$	102.26	155	$	124.69
Granted	174	117.21		70	169.50
Vested	(179)	104.61		—	—
Forfeited or canceled	(22)	105.73		(38)	111.77
Nonvested at December 31, 2023	496	106.52		187	144.05

Stock Options

Share-based Compensation Arrangement by Share-based Payment Award

Assumptions Used In Option Grants Issued

The following weighted average assumptions were used in determining fair value for option grants issued:

	2023	2022	2021
Weighted-average expected term	8-9 years	7-9 years	7-9 years
Expected volatility	28.25-29.61%	26.34-28.87%	25.56-27.81%
Dividend yield	2.39%	2.23%	2.62%
Risk-free rates	3.98-3.99%	1.90-1.92%	0.97-1.26%
Weighted-average fair value of options granted during the period	$38.22	$30.34	$19.64

Performance Based Shares

Share-based Compensation Arrangement by Share-based Payment Award

Assumptions Used In Option Grants Issued

he following assumptions were used in determining fair value for performance-based grants issued:

	2023	2022	2021
Expected term	2.86 years	2.86 years	2.85 years
Expected volatility	25.98-47.73%	30.09-49.28%	29.50-47.26%
Dividend yield	2.37%	2.19%	2.62%
Risk-free rates	4.32%	1.64%	0.20%