Share-Based Compensation and Equity

Stock Options

Stock option activity for the nine months ended September 30, 2017 was as follows:



(In thousands, except per share data)	Number of Shares		Weighted- Average Exercise Price		Aggregate Intrinsic Value		Weighted-Average Remaining Contractual Term (Yrs)
Outstanding at beginning of year	23,601		$	40.33
Granted	4,194		63.25
Exercised	(2,685	)	25.03
Forfeited and expired	(850	)	57.35
Outstanding as of September 30, 2017	24,260		45.39		$	629,257	5.99

Exercisable as of September 30, 2017	12,802		$	32.88	$	492,125	3.82

The weighted-average assumptions used to estimate the fair value, under the Black-Scholes-Merton pricing model, of stock options granted during the nine months ended September 30, 2017 were as follows:



Expected volatility (%)	26.7		%
Expected term (yrs)	7
Risk-free rate (%)	2.1		%
Fair value per option	$	20.47

As of September 30, 2017, there was $167 million of total unrecognized compensation cost related to stock options granted under all plans. That cost is expected to be recognized over a weighted-average period of 3.46 years.

Non-vested Shares and Share Units

Non-vested share and share unit activity for the nine months ended September 30, 2017 was as follows:



(In thousands, except per share data)	Number of Shares		Weighted-Average Grant Date Fair Value

Outstanding at beginning of year	354		$	61.12
Granted	586		66.86
Vested	(158	)	57.79
Forfeited	(10	)	57.02

Outstanding as of September 30, 2017	772		$	66.21

As of September 30, 2017, there was $36 million of total unrecognized compensation cost related to non-vested share awards granted under all plans. That cost is expected to be recognized over a weighted-average period of 1.65 years.

Share-Based Compensation Cost

The following table presents total compensation expense recognized with respect to stock options, non-vested shares and share units, and our associate stock purchase plan:



	Three Months Ended						Nine Months Ended
(In thousands)	2017			2016			2017			2016

Stock option and non-vested share and share unit compensation expense	$	19,858		$	18,942		$	59,217		$	56,896
Associate stock purchase plan expense	1,546			1,503			4,516			4,722
Amounts capitalized in software development costs, net of amortization	(45		)	(95		)	(365		)	(486		)

Amounts charged against earnings, before income tax benefit	$	21,359		$	20,350		$	63,368		$	61,132

Amount of related income tax benefit recognized in earnings	$	6,226		$	6,045		$	18,289		$	18,793

Treasury Stock

In May 2017, our Board of Directors authorized a new share repurchase program that allows the Company to repurchase shares of our common stock up to $500 million, excluding transaction costs. The repurchases are to be effectuated in the open market, by block purchase, in privately negotiated transactions, or through other transactions managed by broker-dealers. No time limit was set for the completion of this program.

During the nine months ended September 30, 2017, we repurchased 0.4 million shares for consideration of $23 million. These shares were recorded as treasury stock and accounted for under the cost method. No repurchased shares have been retired. As of September 30, 2017, an aggregate of $577 million remained available for repurchase under our share repurchase programs.