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Stock-Based Compensation
9 Months Ended
Sep. 30, 2019
Share-based Payment Arrangement [Abstract]  
Stock-Based Compensation Stock-Based Compensation
 
 
Third Quarter
 
First Nine Months
 
 
2019
 
2018
 
2019
 
2018
 
 
($ in millions)
Stock-based compensation expense
 
$
10

 
$
12

 
$
46

 
$
41

Total tax benefit
 
3

 
9

 
34

 
29



During 2019, a committee of nonemployee members of our Board of Directors (and the Chief Executive Officer under delegated authority by such committee) granted stock options, restricted stock units (RSUs) and performance share units (PSUs) pursuant to the Long-Term Incentive Plan (LTIP), as follows:
 
 
Third Quarter
 
First Nine Months
 
 
Granted
 
Weighted-Average Grant-Date Fair Value
 
Granted
 
Weighted-Average Grant-Date Fair Value
 
 
 
 
 
 
 
 
 
Stock options
 
1,190

 
$
40.98

 
45,110

 
$
45.80

RSUs
 
5,610

 
176.40

 
216,800

 
164.20

PSUs
 
2,090

 
168.73

 
98,860

 
160.42



 
Stock Options
 
 
Third Quarter
 
First Nine Months
 
 
2019
 
2018
 
2019
 
2018
 
 
($ in millions)
Stock options exercised
 
55,155

 
327,275

 
677,072

 
797,389

Cash received upon exercise
 
$
3

 
$
23

 
$
47

 
$
56

Related tax benefit realized
 
1

 
7

 
16

 
14



Restricted Stock Units

Beginning in 2018, RSUs granted primarily have a four-year ratable restriction period and will be settled through the issuance of shares of Norfolk Southern common stock (Common Stock). RSUs granted in previous years have a five-year restriction period and will also be settled through the issuance of shares of Common Stock. Certain RSU grants include cash dividend equivalent payments during the restriction period in an amount equal to the regular quarterly dividends paid on Common Stock. 

 
 
Third Quarter
 
First Nine Months
 
 
2019
 
2018
 
2019
 
2018
 
 
($ in millions)
RSUs vested
 
142

 

 
166,197

 
160,200

Common Stock issued net of tax withholding
 
102

 

 
119,346

 
99,968

Related tax benefit realized
 
$

 
$

 
$
2

 
$
3



Performance Share Units

PSUs provide for awards based on the achievement of certain predetermined corporate performance goals at the end of a three-year cycle and are settled through the issuance of shares of Common Stock. All PSUs will earn out based on the achievement of performance conditions and some will also earn out based on a market condition. The market condition fair value was measured on the date of grant using a Monte Carlo simulation model. No PSUs were earned or paid out during the third quarters of 2019 or 2018.

 
 
First Nine Months
 
 
2019
 
2018
 
 
($ in millions)
PSUs earned
 
331,099

 
154,189
Common Stock issued net of tax withholding
 
221,241

 
94,399
Related tax benefit realized
 
$
9

 
$
3