Stock Plans and Share-Based Compensation (Tables)
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12 Months Ended |
Dec. 31, 2021 |
Share-based Payment Arrangement [Abstract] |
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Schedule of Share-Based Compensation and Related Income Tax Benefit |
Total pre-tax expense and income tax benefits associated with share-based compensation are shown in the table below. Income tax benefits include impacts from option exercises and the vesting of other equity awards. | | | | | | | | | | | | | Fiscal Years | (Dollars in Millions) | 2021 | 2020 | 2019 | Share-Based Compensation Expense | | | | Performance Units | $ | 71 | | $ | (3) | | $ | 42 | | Stock Options | 18 | | 19 | | 18 | | Restricted Stock Units and Awards | 12 | | 6 | | 8 | | Employee Stock Purchase Plan | 4 | | 5 | | 4 | | Stock Awards for Directors | 2 | | 2 | | 2 | | Total Share-based Compensation Expense | $ | 107 | | $ | 29 | | $ | 74 | | Income Tax Benefit | $ | 23 | | $ | 19 | | $ | 43 | |
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Schedule of Assumptions and Inputs Used to Estimate Fair Value of Performance Units |
The fair values of the performance units awarded during the years ended December 2021, 2020 and 2019 were calculated primarily using a Monte-Carlo simulation model with the following weighted-average assumptions:
| | | | | | | | | | | | Weighted-average assumptions used: | 2021 | 2020 | 2019 | Annual dividend yield | n/a | n/a | 1.4 | % | Risk-free interest rate | 0.2 | % | 1.4 | % | 2.4 | % | Annualized volatility | 33.6 | % | 24.5 | % | 27.4 | % | Expected life (in years) | 2.9 | 2.9 | 2.8 |
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Schedule of Performance Unit Grant and Vesting Information |
Performance unit grant and vesting information is summarized as follows: | | | | | | | | | | | | | | | | | | | Fiscal Years | | 2021 | | 2020 | | 2019 | Weighted-average grant date fair value | $ | 30.11 | | | $ | 25.39 | | | $ | 22.06 | | Fair value of units vested in fiscal year ending (in millions) | $ | 19 | | | $ | 18 | | | $ | 17 | |
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Schedule of Performance Unit Activity Related to Outstanding Long-term Incentive Plans and Corresponding Fair Value |
The performance unit activity related to the outstanding long-term incentive plans and corresponding fair value is summarized as follows: | | | | | | | | | | | | | Performance Units Outstanding (in Thousands) | | Weighted-Average Fair Value at Grant Date | Unvested at December 31, 2020 | 1,920 | | | $ | 23.86 | | Granted | 597 | | | 30.11 | | Forfeited | (59) | | | 24.30 | | Vested | (882) | | | 22.09 | | Unvested at December 31, 2021 | 1,576 | | | $ | 27.21 | |
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Schedule of Assumptions and Inputs Used to Estimate Fair Value of Stock Options |
Assumptions and inputs used to estimate fair value of stock options are summarized as follows: | | | | | | | | | | | | | Fiscal Years | | 2021 | 2020 | 2019 | Weighted-average grant date fair value | $ | 7.94 | | $ | 6.31 | | $ | 5.96 | | | | | | | | | | Stock options valuation assumptions: | | | | Annual dividend yield | 1.2 | % | 1.2 | % | 1.3 | % | Risk-free interest rate | 0.7 | % | 1.4 | % | 2.4 | % | Annualized volatility | 31.2 | % | 26.1 | % | 25.7 | % | Expected life (in years) | 6.0 | 6.0 | 6.1 | Other pricing model inputs: | | | | Weighted-average grant-date market price of CSX stock (strike price) | $ | 29.65 | | $ | 26.53 | | $ | 23.34 | |
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Schedule of Stock Option Activity |
The stock option activity is summarized as follows: | | | | | | | | | | | | | | | | | | | | | | | | | Stock Options Outstanding (in Thousands) | | Weighted-Average Exercise Price | | Weighted-Average Remaining Contractual Life (in Years) | | Aggregate Intrinsic Value (in Millions) | Outstanding at December 31, 2020 | 12,652 | | | $ | 20.29 | | | | | | Granted | 2,005 | | | 29.69 | | | | | | Forfeited | (174) | | | 26.91 | | | | | | Exercised | (1,971) | | | 15.76 | | | | | | Outstanding at December 31, 2021 | 12,512 | | | $ | 22.42 | | | 7.2 | | $ | 190 | | Exercisable at December 31, 2021 | 6,347 | | | $ | 18.16 | | | 6.1 | | $ | 123 | |
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Schedule of Intrinsic Value and Cash Proceeds of Options Exercises |
Additional information on stock option exercises is summarized as follows: | | | | | | | | | | | | (Dollars in Millions) | 2021 | 2020 | 2019 | Intrinsic value of stock options exercised | $ | 32 | | $ | 30 | | $ | 87 | | Cash received from option exercises | $ | 31 | | $ | 29 | | $ | 45 | |
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Schedule of Restricted Stock Grant and Vesting Information |
Restricted stock grant and vesting information is summarized as follows: | | | | | | | | | | | | | | | | | | | Fiscal Years | | 2021 | | 2020 | | 2019 | Weighted-average grant date fair value | $ | 29.84 | | | $ | 26.43 | | | $ | 23.06 | | Fair value of units and awards vested during fiscal year ended (in millions) | $ | 12 | | | $ | 8 | | | $ | 7 | |
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Schedule of Outstanding Restricted Stock Units and Awards |
The restricted stock activity related to the outstanding long-term incentive plans and other awards and corresponding fair value is summarized as follows: | | | | | | | | | | | | | Restricted Stock Units and Awards Outstanding (in Thousands) | | Weighted-Average Fair Value at Grant Date | Unvested at December 31, 2020 | 1,055 | | | $ | 22.36 | | Granted | 561 | | | 29.84 | | Forfeited | (50) | | | 27.31 | | Vested | (543) | | | 21.26 | | Unvested at December 31, 2021 | 1,023 | | | $ | 27.53 | |
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Schedule of Shares Issued under Employee Stock Purchase Plan |
During 2021, 2020 and 2019, the Company issued the following shares under this program. | | | | | | | | | | | | | | | | | | | Fiscal Years | | 2021 | | 2020 | | 2019 | Shares issued (in thousands) | 730 | | | 726 | | | 747 | | Weighted average purchase price per share | $ | 21.90 | | | $ | 20.13 | | | $ | 17.57 | |
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