Stock-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2014

Stock-Based Compensation

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

Pre-tax compensation expense and the related income tax benefit for these stock-based incentives were as follows, in millions:

	Three Months Ended
	March 31,
	2014		2013
Long-term stock awards	$	11	$	9
Stock options	1		5
Phantom stock awards and stock appreciation rights	—		3
Total	$	12	$	17
Income tax benefit (37 percent tax rate - before valuation allowance)	$	4	$	6

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

The Company’s long-term stock award activity was as follows, shares in millions:

	Three Months Ended
	March 31,
	2014		2013
Unvested stock award shares at January 1	8		8
Weighted average grant date fair value	$	17	$	16
Stock award shares granted	1		2
Weighted average grant date fair value	$	22	$	20
Stock award shares vested	2		2
Weighted average grant date fair value	$	17	$	16
Stock award shares forfeited	—		—
Weighted average grant date fair value	$	18	$	18
Unvested stock award shares at March 31	7		8
Weighted average grant date fair value	$	18	$	17

Schedule of the Company's stock option activity

The Company’s stock option activity was as follows, shares in millions:

	Three Months Ended
	March 31,
	2014		2013
Option shares outstanding, January 1		24		30
Weighted average exercise price	$	22	$	21
Option shares granted		—		1
Weighted average exercise price	$	22	$	20
Option shares exercised		1		2
Aggregate intrinsic value on date of exercise (A)	$	10 million	$	17 million
Weighted average exercise price	$	16	$	11
Option shares forfeited		—		—
Weighted average exercise price	$	27	$	19
Option shares outstanding, March 31		23		29
Weighted average exercise price	$	22	$	22
Weighted average remaining option term (in years)		4		4
Option shares vested and expected to vest, March 31		23		29
Weighted average exercise price	$	22	$	22
Aggregate intrinsic value (A)	$	93 million	$	82 million
Weighted average remaining option term (in years)		4		4
Option shares exercisable (vested), March 31		20		23
Weighted average exercise price	$	23	$	24
Aggregate intrinsic value (A)	$	72 million	$	45 million
Weighted average remaining option term (in years)		3		4

(A) Aggregate intrinsic value is calculated using the Company’s 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:

	Three Months Ended
	March 31,
	2014			2013
Weighted average grant date fair value	$	9.53		$	8.33
Risk-free interest rate	1.91		%	1.20		%
Dividend yield	1.34		%	1.47		%
Volatility factor	49.00		%	49.00		%
Expected option life	6 years			6 years