Share-Based Incentive Compensation

9 Months Ended

Sep. 30, 2023

Share-Based Payment Arrangement [Abstract]

SHARE-BASED INCENTIVE COMPENSATION

The following information relates to fully vested stock option awards at September 30, 2023:


Stock Options	Number	Weighted Average Exercise Price		Weighted Average Contractual Life Remaining	Aggregate Intrinsic Value ($ in millions)
Vested at end of period (1)	7,420,703	$	137.92	5.7 years	$	209
Exercisable at end of period	5,344,583	$	128.37	4.7 years	$	187

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(1)Represents awards for which the requisite service has been rendered, including those that are retirement eligible.

The total compensation cost for all share-based incentive compensation awards recognized in earnings was $46 million and $41 million for the three months ended September 30, 2023 and 2022, respectively, and $162 million and $141 million for the nine months ended September 30, 2023 and 2022, respectively. The related tax benefits recognized in the consolidated statement of income were $8 million and $7 million for the three months ended September 30, 2023 and 2022, respectively, and $27 million and $24 million for the nine months ended September 30, 2023 and 2022, respectively.

The total unrecognized compensation cost related to all nonvested share-based incentive compensation awards at September 30, 2023 was $237 million, which is expected to be recognized over a weighted-average period of 1.8 years.