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Stock Plans (Tables)
 12 Months Ended
Dec. 31, 2016
Table Text Block [Abstract]  
Summary of Stock Option and RSA Activity

A summary of stock option and RSA activity as of December 31, 2016 and changes during the year is presented below:

  Stock Options  RSAs
(Shares in thousands)SharesWeighted-Average Exercise PriceSharesWeighted-AverageGrantPrice
Outstanding as of December 31, 201510,820$44.60  7,433$74.67
Granted  2,92063.89  4,06255.55
Exercised/vested  (3,396)51.40  (3,128)63.93
Forfeited  (67)66.02  (867)70.99
Expired  (5)51.87  ――
Outstanding as of December 31, 201610,27247.68  7,500$69.22
Options vested and expected to vest as of December 31, 201610,03147.26――
Options exercisable as of December 31, 20166,963$38.55  ――
Weighted-average remaining contractual life and aggregate intrinsic value of the Company's stock options outstanding, exerciseable, and vested and expected to vest

The weighted-average remaining contractual life and the aggregate intrinsic value (the amount by which the fair value of the Company’s stock exceeds the exercise price of the option) of the stock options outstanding, exercisable, vested, and expected to vest as of December 31, 2016, are as follows:

OutstandingExercisableVested and Expected to Vest
Weighted-average remaining contractual life (in years)4.8  2.8  4.7
Aggregate intrinsic value (millions)  $277  $248  $275
Weighted Average Assumptions Used

The fair value of each option is estimated on the date of grant using a Black-Scholes-Merton option-pricing model. The following weighted-average assumptions were used for options granted in 2016, 2015 and 2014:

201620152014
Dividend yield1.9% 1.1% 1.1% 
Expected volatility(a)25% 37% 38% 
Risk-free interest rate1.5% 1.7% 2.2% 
Expected life of stock option (in years)(b)6.3  6.7  6.7  
Weighted-average fair value per option$13.67  $29.20  $32.36  

  • The expected volatility is based on both weighted historical and implied volatilities of the Company’s common stock price.
  • The expected life of stock options was determined using both historical data and expectations of option exercise behavior.
Summary of Stock Plan Expenses

The components of the Company’s total stock-based compensation expense (net of forfeitures) for the years ended December 31 are as follows:

(Millions)  2016  2015  2014
Restricted stock awards(a)  $178  $190  $193
Stock options(a)  14  12  13
Liability-based awards  60  32  84
Total stock-based compensation expense (b)  $252  $234  $290

  • As of December 31, 2016, the total unrecognized compensation cost related to unvested RSAs and options of $189 million and $24 million, respectively, will be recognized ratably over the weighted-average remaining vesting period of 2.0 years and 2.1 years, respectively.
  • The total income tax benefit recognized in the Consolidated Statements of Income for stock-based compensation arrangements for the years ended December 31, 2016, 2015 and 2014 was $89 million, $83 million and $104 million, respectively.