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Stock-based Employee Incentive Plans (Tables) | 12 Months Ended
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Dec. 31, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
Stock-based compensation | The following table is a summary of stock-based compensation for each of the respective periods:
In millions | 2018 |  | 2017 |  | 2016
Stock options and stock appreciation rights (“SARs”) (1)(2) | $ | 70 |  |  | $ | 65 |  |  | $ | 79 |
Restricted stock units and performance stock units (2) | 210 |  |  | 169 |  |  | 143 |
Total stock-based compensation | $ | 280 |  |  | $ | 234 |  |  | $ | 222 |
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(1) | Includes the ESPP.
(2) | Stock-based compensation for the year ended December 31, 2018 includes $14 million and $27 million associated with accelerated vesting of SARs and restricted stock replacement awards, respectively, issued to Aetna employees who were terminated subsequent to the acquisition.
Schedule ESPP valuation assumptions | The following table is a summary of the assumptions used to value the ESPP awards for each of the respective periods:
| 2018 |  | 2017 |  | 2016
Dividend yield (1) | 1.45 | % |  | 1.24 | % |  | 0.88 | %
Expected volatility (2) | 28.02 | % |  | 22.70 | % |  | 20.64 | %
Risk-free interest rate (3) | 1.87 | % |  | 0.86 | % |  | 0.45 | %
Expected life (in years) (4) | 0.5 |  |  | 0.5 |  |  | 0.5 |
Weighted-average grant date fair value | $ | 12.26 |  |  | $ | 13.01 |  |  | $ | 14.98 |
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(1) | The dividend yield is calculated based on semi-annual dividends paid and the fair market value of the Company’s stock at the grant date.
(2) | The expected volatility is based on the historical volatility of the Company’s daily stock market prices over the previous six month period.
(3) | The risk-free interest rate is based on the Treasury constant maturity interest rate whose term is consistent with the expected term of ESPP purchases (i.e., six months).
(4) | The expected life is based on the semi-annual purchase period.
RSU and performance share unit activity | The following table is a summary of the restricted stock unit and performance stock unit activity for the year ended December 31, 2018:
|  |  | Weighted Average |
|  |  | Grant Date |
Units in thousands | Units |  | Fair Value |
Unvested at beginning of year | 5,014 |  |  | $ | 86.92 |
Granted | 10,185 |  |  | $ | 73.18 |
Vested | (3,757 | ) |  | $ | 68.85 |
Forfeited | (437 | ) |  | $ | 76.92 |
Unvested at end of year | 11,005 |  |  | $ | 76.18 |
Cash Proceeds Received and Tax Benefit from Share-based Payment Awards | The following table is a summary of stock option and SAR activity that occurred for the years ended December 31, 2018, 2017 and 2016:
In millions | 2018 |  | 2017 |  | 2016
Cash received from stock options exercised (including ESPP) | $ | 242 |  |  | $ | 329 |  |  | $ | 296 |
Payments for taxes for net share settlement of equity awards | 97 |  |  | 71 |  |  | 72 |
Intrinsic value of stock options and SARs exercised | 79 |  |  | 176 |  |  | 244 |
Fair value of stock options and SARs vested | 324 |  |  | 341 |  |  | 298 |
Schedule of valuation assumptions | The fair value of each stock option and SAR is estimated using the Black-Scholes option pricing model based on the following assumptions at the time of grant:
| 2018 |  | 2017 |  | 2016
Dividend yield (1) | 2.76 | % |  | 2.56 | % |  | 1.62 | %
Expected volatility (2) | 21.27 | % |  | 18.39 | % |  | 17.22 | %
Risk-free interest rate (3) | 2.77 | % |  | 1.77 | % |  | 1.24 | %
Expected life (in years) (4) | 4.8 |  |  | 4.1 |  |  | 4.2 |
Weighted-average grant date fair value | $ | 24.55 |  |  | $ | 9.43 |  |  | $ | 13.00 |
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(1) | The dividend yield is based on annual dividends paid and the fair market value of the Company’s stock at the grant date.
(2) | The expected volatility is estimated using the Company’s historical volatility over a period equal to the expected life of each option grant after adjustments for infrequent events such as stock splits.
(3) | The risk-free interest rate is selected based on yields from U.S. Treasury zero-coupon issues with a remaining term equal to the expected term of the options being valued.
(4) | The expected life represents the number of years the options are expected to be outstanding from grant date based on historical option holder exercise experience.
Schedule of Stock Options and Stock Appreciation Rights Award Activity | The following table is a summary of the Company’s stock option and SAR activity for the year ended December 31, 2018
|  |  |  |  | Weighted |  |
|  |  | Weighted |  | Average |  |
|  |  | Average |  | Remaining |  | Aggregate
In thousands, except weighted average exercise price and remaining contractual term |  |  | Exercise |  | Contractual |  | Intrinsic
Shares |  | Price |  | Term |  | Value
Outstanding at December 31, 2017 | 20,530 |  |  | $ | 75.32 |  |  |  |  |
Granted | 7,144 |  |  | $ | 51.06 |  |  |  |  |
Exercised | (2,993 | ) |  | $ | 44.62 |  |  |  |  |
Forfeited | (908 | ) |  | $ | 86.97 |  |  |  |  |
Expired | (864 | ) |  | $ | 81.79 |  |  |  |  |
Outstanding at December 31, 2018 | 22,909 |  |  | $ | 71.15 |  |  | 4.08 |  | $ | 165,245 |
Exercisable at December 31, 2018 | 11,436 |  |  | $ | 72.69 |  |  | 2.23 |  | $ | 73,784 |
Vested at December 31, 2018 and expected to vest in the future | 22,532 |  |  | $ | 71.18 |  |  | 4.05 |  | $ | 163,596 |

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- Definition Tabular disclosure of the allocation of equity-based compensation costs to a given line item on the balance sheet and income statement for the period. This may include the reporting line for the costs and the amount capitalized and expensed. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (h)(1) -URI http://asc.fasb.org/extlink&oid=96867065&loc=d3e5070-113901 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=96867065&loc=d3e5047-113901 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB Topic 14.F) -URI http://asc.fasb.org/extlink&oid=27013229&loc=d3e301413-122809 + Details
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- Definition Tabular disclosure of the significant assumptions used during the year to estimate the fair value of employee stock purchase plans, including, but not limited to: (a) expected term, (b) expected volatility of the entity's shares, (c) expected dividends, (d) risk-free rate(s), and (e) discount for post-vesting restrictions. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (f)(2) -URI http://asc.fasb.org/extlink&oid=96867065&loc=d3e5070-113901 + Details
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