Share-Based Compensation Plans

3 Months Ended

Mar. 31, 2021

Share-based Payment Arrangement [Abstract]

Share-Based Compensation PlansThe 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)	2021		2020
Pretax share-based compensation expense	$	120	$	108
Income tax benefit	(17)		(15)
Total share-based compensation expense, net of taxes	$	103	$	93

During the first three months of 2021, the Company granted 75 thousand RSUs with a weighted-average grant date fair value of $75.04 per RSU and during the first three months of 2020 granted 58 thousand RSUs with a weighted-average grant date fair value of $85.66 per RSU. During the first three months of 2021, the Company granted 976 thousand PSUs with a weighted-average grant date fair value of $75.70 per PSU and during the first three months of 2020 granted 770 thousand PSUs with a weighted-average grant date fair value of $75.65 per PSU. The Company did not grant any stock options during the first three months of 2021 or 2020.

At March 31, 2021, there was $1.2 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 2.5 years. The Company typically communicates the value of annual RSU and stock option compensation awards to employees during the first quarter, but the related share amounts are not established and communicated until early May. Therefore, any RSU and stock option grants disclosed above do not reflect any amounts relating to the annual grants; however, share-based compensation costs for the first quarter of 2021 and 2020 and unrecognized compensation expense at March 31, 2021 reflect an impact relating to the awards communicated to employees. For segment reporting, share-based compensation costs are unallocated expenses.