Share-Based Compensation Plans

3 Months Ended

Mar. 31, 2020

Share-based Payment Arrangement [Abstract]

The Company has share-based compensation plans under which the Company grants restricted stock units (RSUs) and performance share units (PSUs) to certain management level employees. In addition, employees and non-employee directors may be granted options to purchase shares of Company common stock at the fair market value at the time of grant.

The following table provides the amounts of share-based compensation cost recorded in the Condensed Consolidated Statement of Income:



	Three Months Ended March 31,
($ in millions)	2020			2019
Pretax share-based compensation expense	$	108		$	93
Income tax benefit	(15		)	(14		)
Total share-based compensation expense, net of taxes	$	93		$	79

During the first three months of 2020, the Company granted 58 thousand RSUs with a weighted-average grant date fair value of $85.66 per RSU and during the first three months of 2019 granted 70 thousand RSUs with a weighted-average grant date fair value of $77.39 per RSU. During the first three months of 2020, the Company granted 770 thousand PSUs with a weighted-average grant date fair value of $75.65 per PSU and during the first three months of 2019 granted 609 thousand PSUs with a weighted-average grant date fair value of $90.50 per PSU. The Company did not grant any stock options during the first three months of 2020 or 2019.

At March 31, 2020, there was $1.1 billion of total pretax unrecognized compensation expense related to nonvested stock options, RSU and PSU awards which will be recognized over a weighted-average period of 2.4 years. The Company typically communicates the value of annual share-based compensation awards to employees during the first quarter, but the related share amounts are not established and communicated until early May. Therefore, while the number of RSU, PSU and stock option grants disclosed above do not reflect any amounts relating to the annual grants, share-based compensation costs for the first quarter of 2020 and 2019 and unrecognized compensation expense at March 31, 2020 reflect an impact relating to the awards communicated to employees. For segment reporting, share-based compensation costs are unallocated expenses.