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STOCK-BASED COMPENSATION | 9 Months Ended
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Sep. 30, 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 September 30, |  | Nine Months Ended September 30,
| 2024 |  | 2023 |  | 2024 |  | 2023
Stock-based compensation cost | $ | 57 |  |  | $ | 46 |  |  | $ | 166 |  |  | $ | 143 |
Tax benefit | $ | 12 |  |  | $ | 10 |  |  | $ | 36 |  |  | $ | 32 |
During the first nine months of 2024, the Company granted 0.2 million employee stock options, which had a weighted average grant date fair value of $120.42 per share. The Company also granted 0.5 million shares of restricted stock in the first nine months of 2024, which had a weighted average grant date fair value of $372.64 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 $361.83 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 September 30, 2024 was $16 million and $279 million for unvested stock options and restricted stock, respectively, which is expected to be recognized over a weighted average period of 1.8 years and 2.5 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 2.3 years. The following table summarizes information relating to stock option exercises and restricted stock vesting:
| Nine Months Ended September 30,
| 2024 |  | 2023
Exercise of stock options: |  |  |
Proceeds from stock option exercises | $ | 44 |  |  | $ | 26 |
Aggregate intrinsic value | $ | 60 |  |  | $ | 48 |
Tax benefit realized upon exercise | $ | 10 |  |  | $ | 11 |
Number of shares exercised | 0.3 |  |  | 0.2 |
Vesting of restricted stock: |  |  |
Fair value of shares vested | $ | 183 |  |  | $ | 154 |
Tax benefit realized upon vesting | $ | 45 |  |  | $ | 36 |
Number of shares vested | 0.5 |  |  | 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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