Share-Based Compensation (Notes)

12 Months Ended

Dec. 31, 2019

Share-based Payment Arrangement [Abstract]

Share-based Payment Arrangement [Text Block]

Share-Based Compensation

The Company’s outstanding share-based awards consist mainly of non-qualified stock options and restricted shares. As of December 31, 2019, the Company had 32 million shares available for future grants of share-based awards under the Plan. As of December 31, 2019, there were also 5 million shares of common stock available for issuance under the ESPP.

Stock Options

Stock option activity for the year ended December 31, 2019 is summarized in the table below:

	Shares		Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life	Aggregate Intrinsic Value
	(in millions)				(in years)	(in millions)
Outstanding at beginning of period	35		$	131
Granted	7		260
Exercised	(9	)	94
Forfeited	(1	)	212
Outstanding at end of period	32		166		6.5	$	4,106
Exercisable at end of period	15		114		5.0	2,716
Vested and expected to vest, end of period	31		165		6.4	4,068

Restricted Shares

Restricted share activity for the year ended December 31, 2019 is summarized in the table below:

(shares in millions)	Shares		Weighted-Average Grant Date Fair Value per Share
Nonvested at beginning of period	6		$	163
Granted	2		259
Vested	(3	)	147
Nonvested at end of period	5		207

Other Share-Based Compensation Data

(in millions, except per share amounts)	For the Years Ended December 31,
	2019		2018		2017
Stock Options
Weighted-average grant date fair value of shares granted, per share	$	46	$	43	$	29
Total intrinsic value of stock options exercised	1,398		1,431		1,473
Restricted Shares
Weighted-average grant date fair value of shares granted, per share	259		229		163
Total fair value of restricted shares vested	$	545	$	521	$	460
Employee Stock Purchase Plan
Number of shares purchased	1		2		2
Share-Based Compensation Items
Share-based compensation expense, before tax	$	697	$	638	$	597
Share-based compensation expense, net of tax effects	641		587		531
Income tax benefit realized from share-based award exercises	201		239		431

(in millions, except years)	December 31, 2019
Unrecognized compensation expense related to share awards	$	714
Weighted-average years to recognize compensation expense	1.3

Share-Based Compensation Recognition and Estimates

The principal assumptions the Company used in calculating grant-date fair value for stock options were as follows:

	For the Years Ended December 31,
	2019	2018	2017
Risk-free interest rate	1.5% - 2.5%	2.6% - 3.1%	1.9% - 2.1%
Expected volatility	19.4% - 21.6%	18.7% - 19.3%	18.5% - 20.7%
Expected dividend yield	1.4% - 1.8%	1.3% - 1.5%	1.4% - 1.6%
Forfeiture rate	5.0%	5.0%	5.0%
Expected life in years	5.3	5.6	5.7

Risk-free interest rates are based on U.S. Treasury yields in effect at the time of grant. Expected volatilities are based on the historical volatility of the Company’s common stock and the implied volatility from exchange-traded options on the Company’s common stock. Expected dividend yields are based on the per share cash dividend paid by the Company. The Company uses historical data to estimate option exercises and forfeitures within the valuation model. The expected lives of options granted represents the period of time that the awards granted are expected to be outstanding based on historical exercise patterns.

Other Employee Benefit Plans

The Company offers a 401(k) plan for its employees. Compensation expense related to this plan was not material for 2019, 2018 and 2017.

In addition, the Company maintains non-qualified, deferred compensation plans, which allow certain members of senior management and executives to defer portions of their salary or bonus and receive certain Company contributions on such deferrals, subject to plan limitations. The deferrals are recorded within long-term investments with an approximately equal amount in other liabilities in the Consolidated Balance Sheets. The total deferrals are distributable based upon termination of employment or other periods, as elected under each plan and were $1.4 billion and $988 million as of December 31, 2019 and 2018, respectively.