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Stock-Based Compensation (Tables)
 9 Months Ended
Sep. 30, 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

 

Nine Months Ended

 

 

 

September 30,

 

September 30,

 

 

 

2014

 

2013

 

2014

 

2013

 

Long-term stock awards

 

$
7 

 

$
7 

 

$
30 

 

$
27 

 

Stock options

 
1 

 
2 

 
3 

 
12 

 

Phantom stock awards and stock appreciation rights

 
3 

 
3 

 
4 

 
6 

 

Total

 

$
11 

 

$
12 

 

$
37 

 

$
45 

 

 

 

 

 

 

 

 

 

 

 

Income tax benefit (37 percent tax rate - before valuation allowance)

 

$
4 

 

$
5 

 

$
14 

 

$
17 

 

 

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

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

 

 

 

Nine Months Ended

 

 

 

September 30,

 

 

 

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 

 

$
17 

 

 

 

 

 

 

 

Stock award shares forfeited

 
1 

 

—

 

Weighted average grant date fair value

 

$
16 

 

$
17 

 

 

 

 

 

 

 

Unvested stock award shares at September 30

 
6 

 
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:

 

 

 

Nine Months Ended

 

 

 

September 30,

 

 

 

2014

 

2013

 

Option shares outstanding, January 1

 
24 

 
30 

 

Weighted average exercise price

 

$
22 

 

$
21 

 

 

 

 

 

 

 

Option shares granted, including restoration options

 

—

 
1 

 

Weighted average exercise price

 

$
22 

 

$
20 

 

 

 

 

 

 

 

Option shares exercised

 
2 

 
3 

 

Aggregate intrinsic value on date of exercise (A) 

 

$

17 million

 

$

22 million

 

Weighted average exercise price

 

$
16 

 

$
12 

 

 

 

 

 

 

 

Option shares forfeited

 
3 

 
1 

 

Weighted average exercise price

 

$
28 

 

$
23 

 

 

 

 

 

 

 

Option shares outstanding, September 30

 
19 

 
27 

 

Weighted average exercise price

 

$
21 

 

$
22 

 

Weighted average remaining option term (in years)

 
4 

 
4 

 

 

 

 

 

 

 

Option shares vested and expected to vest, September 30

 
19 

 
27 

 

Weighted average exercise price

 

$
21 

 

$
22 

 

Aggregate intrinsic value (A) 

 

$

102 million

 

$

91 million

 

Weighted average remaining option term (in years)

 
4 

 
4 

 

 

 

 

 

 

 

Option shares exercisable (vested), September 30

 
16 

 
22 

 

Weighted average exercise price

 

$
22 

 

$
24 

 

Aggregate intrinsic value (A) 

 

$

80 million

 

$

51 million

 

Weighted average remaining option term (in years)

 
3 

 
3 

 

 

 

(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

 

 

 

Nine Months Ended

 

 

 

September 30,

 

 

 

2014

 

2013

 

Weighted average grant date fair value

 

$
9.53 

 

$
8.35 

 

Risk-free interest rate

 
1.91 

%
1.22 

%

Dividend yield

 
1.34 

%
1.47 

%

Volatility factor

 
49.00 

%
49.07 

%

Expected option life

 

6 years

 

6 years