Stock-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2022

Share-Based Payment Arrangement [Abstract]

Schedule of pre-tax compensation expense and the related income tax benefit for these stock-based incentives

Pre-tax compensation expense for these stock-based incentives was as follows, in millions: 

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Restricted stock units	$	4	$	3	$	29	$	26
Performance restricted stock units	1		2		5		8
Stock options	1		1		7		6
Long-term stock awards	2		2		6		8
Phantom stock awards	—		1		—		3
Total	$	8	$	9	$	47	$	51

Schedule of the Company's long-term stock award activity

Our restricted stock unit activity was as follows, units in thousands: 

	Nine Months Ended September 30,
	2022		2021
Unvested restricted stock units at January 1	934		435
Weighted average grant date fair value	$	54	$	47
Restricted stock units granted	608		663
Weighted average grant date fair value	$	59	$	57
Restricted stock units vested	350		141
Weighted average grant date fair value	$	53	$	47
Restricted stock units forfeited	16		16
Weighted average grant date fair value	$	56	$	54
Unvested restricted stock units at September 30	1,176		941
Weighted average grant date fair value	$	57	$	54

Our long-term stock award activity was as follows, shares in thousands: 

	Nine Months Ended September 30,
	2022		2021
Unvested stock award shares at January 1	608		1,125
Weighted average grant date fair value	$	37	$	36
Stock award shares vested	324		491
Weighted average grant date fair value	$	37	$	34
Stock award shares forfeited	10		18
Weighted average grant date fair value	$	37	$	37
Unvested stock award shares at September 30	274		616
Weighted average grant date fair value	$	38	$	37

Schedule of the Company's stock option activity

Our stock option activity was as follows, shares in thousands: 

		Nine Months Ended September 30,
		2022		2021
Option shares outstanding, January 1		2,692		2,488
Weighted average exercise price	$	37	$	33
Option shares granted		338		332
Weighted average exercise price	$	59	$	56
Option shares exercised		32		18
Aggregate intrinsic value on date of exercise (A)	$	1 million	$	1 million
Weighted average exercise price	$	34	$	20
Option shares forfeited		10		—
Weighted average exercise price	$	37	$	11
Option shares outstanding, September 30		2,988		2,802
Weighted average exercise price	$	39	$	36
Weighted average remaining option term (in years)		6		6
Option shares vested and expected to vest, September 30		2,928		2,687
Weighted average exercise price	$	39	$	36
Aggregate intrinsic value (A)	$	30 million	$	53 million
Weighted average remaining option term (in years)		6		6
Option shares exercisable (vested), September 30		2,051		1,717
Weighted average exercise price	$	34	$	30
Aggregate intrinsic value (A)	$	28 million	$	43 million
Weighted average remaining option term (in years)		5		5

(A)    Aggregate intrinsic value is calculated using our stock price at each respective date, less the exercise price (grant date price), multiplied by the number of shares.

Schedule of weighted average grant date fair value of option shares granted and the assumptions used to estimate those values using a Black-Scholes option pricing model

The weighted average grant date fair value of option shares granted and the assumptions used to estimate those values using a Black-Scholes option pricing model were as follows: 

	Nine Months Ended September 30,
	2022			2021
Weighted average grant date fair value	$	14.66		$	13.61
Risk-free interest rate	1.90		%	0.75		%
Dividend yield	1.89		%	1.67		%
Volatility factor	29.00		%	30.00		%
Expected option life	6 years			6 years