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STOCK-BASED COMPENSATION | 3 Months Ended
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Mar. 31, 2024
Share-Based Payment Arrangement, Noncash Expense [Abstract] |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION Presented below is a summary of the stock-based compensation cost and associated tax benefit included in the accompanying consolidated statements of operations:
| Three Months Ended March 31, |  |
| 2024 |  | 2023 |  |  |  |
Stock-based compensation cost | $ | 53 |  |  | $ | 47 |  |  |  |  |
Tax benefit | $ | 12 |  |  | $ | 10 |  |  |  |  |
During the first quarter of 2024, the Company granted 0.2 million employee stock options, which had a weighted average grant date fair value of $120.28 per share. The Company also granted 0.5 million shares of restricted stock in the first quarter of 2024, which had a weighted average grant date fair value of $372.18 per share. Both the employee stock options and restricted stock generally vest ratably over four years. Additionally, the Company granted 0.2 million shares of performance-based awards whereby the number of shares that ultimately vest are based on the achievement of certain non-market-based performance metrics of the Company over a period of two to four years. The weighted average grant date fair value of these awards was $361.44 per share. The following weighted average assumptions were used in determining the fair value using the Black-Scholes option-pricing model for options granted in 2024:
Expected dividend yield | 0.91 | %
Expected stock volatility | 28 | %
Risk-free interest rate | 4.34 | %
Expected holding period | 5.9 years
Unrecognized stock-based compensation expense at March 31, 2024 was $26 million and $375 million for unvested stock options and restricted stock, respectively, which is expected to be recognized over a weighted average period of 1.9 years and 2.8 years, respectively. Additionally, there was $67 million of unrecognized stock-based compensation expense relating to the aforementioned non-market-based performance-based awards, which is expected to be recognized over a weighted average period of 2.7 years. The following table summarizes information relating to stock option exercises and restricted stock vesting:
| Three Months Ended March 31,
| 2024 |  | 2023
Exercise of stock options: |  |  |
Proceeds from stock option exercises | $ | 16 |  |  | $ | 7 |
Aggregate intrinsic value | $ | 21 |  |  | $ | 15 |
Tax benefit realized upon exercise | $ | 3 |  |  | $ | 4 |
Number of shares exercised | 0.1 |  |  | 0.1 |
Vesting of restricted stock: |  |  |
Fair value of shares vested | $ | 169 |  |  | $ | 140 |
Tax benefit realized upon vesting | $ | 41 |  |  | $ | 33 |
Number of shares vested | 0.4 |  |  | 0.5 |
Vesting of performance-based restricted stock: |  |  |
Fair value of shares vested | $ | 40 |  |  | $ | 24 |
Tax benefit realized upon vesting | $ | 9 |  |  | $ | 3 |
Number of shares vested | 0.1 |  |  | 0.1 |

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