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Stock-Based Compensation | 12 Months Ended
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Dec. 31, 2022
Share-Based Payment Arrangement [Abstract] |
Stock-Based Compensation | Stock-Based Compensation Stock-Based Compensation Plans Under plans approved by our stockholders, we are authorized to grant key employees stock-based incentive awards, including options to purchase common stock, stock appreciation rights, RSUs, PSUs or other stock units. At December 31, 2022, inclusive of the shares reserved for outstanding RSUs and PSUs, we had approximately 9.1 million shares reserved for issuance under the plans. At December 31, 2022, approximately 6.8 million of the shares reserved for issuance remained available for grant under our stock-based compensation plans. We issue new shares upon the exercise of stock options or when restrictions on RSUs and PSUs have been satisfied. The exercise price of options to purchase common stock may not be less than the fair market value of our stock on the date of grant. The minimum vesting period for restricted stock or stock units payable in stock is generally three years. Award agreements may provide for shorter or pro-rated vesting periods or vesting following termination of employment in the case of death, disability, divestiture, retirement, change of control or layoff. The maximum term of a stock option or any other award is 10 years. During 2022, 2021 and 2020, we recorded noncash stock-based compensation expense totaling $238 million, $227 million and $221 million, which is included as a component of other unallocated, net on our consolidated statements of earnings. The net impact to earnings for the respective years was $188 million, $179 million and $175 million. As of December 31, 2022, we had $181 million of unrecognized compensation cost related to nonvested awards, which is expected to be recognized over a weighted average period of 1.7 years. We received cash from the exercise of stock options totaling $8 million, $28 million and $41 million during 2022, 2021 and 2020. In addition, our income tax liabilities for 2022, 2021 and 2020 were reduced by $124 million, $67 million and $63 million due to recognized tax benefits on stock-based compensation arrangements. Restricted Stock Units The following table summarizes activity related to nonvested RSUs:
|  | Number of RSUs (In thousands) |  | Weighted Average Grant-Date Fair Value Per Share
Nonvested at December 31, 2021 |  | 810 |  |  |  | $ | 345.37 |  |
Granted |  | 562 |  |  |  | 388.82 |  |
Vested |  | (461) |  |  |  | 347.37 |  |
Forfeited |  | (34) |  |  |  | 371.01 |  |
Nonvested at December 31, 2022 |  | 877 |  |  |  | $ | 371.17 |  |
In 2022, we granted certain employees approximately 0.6 million RSUs with a weighted average grant-date fair value of $388.82 per RSU. The grant-date fair value of these RSUs is equal to the closing market price of our common stock on the grant date less a discount to reflect the delay in payment of dividend-equivalent cash payments that are made only upon vesting, which occurs at least one year from the grant date and most often occurs three years from the grant date. Performance Stock Units In 2022, we granted certain employees PSUs with an aggregate target award of approximately 0.1 million shares of our common stock. The PSUs generally vest three years from the grant date based on continuous service, with the number of shares earned (0% to 200% of the target award) depending upon the extent to which we achieve certain financial and market performance targets measured over the period from January 1, 2022 through December 31, 2024. About half of the PSUs were valued at a weighted average grant-date fair value of $388.07 per PSU in a manner similar to RSUs mentioned above as the financial targets are based on our operating results. The remaining PSUs were valued at a weighted-average grant-date fair value of $537.32 per PSU using a Monte Carlo model as the performance target is related to our total shareholder return relative to our peer group. We recognize the grant-date fair value of these awards, less estimated forfeitures, as compensation expense ratably over the vesting period.

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