Stock Plans

9 Months Ended

Sep. 30, 2022

Share-Based Payment Arrangement [Abstract]

Note 11. Stock Plans

Stock Options:

Stock option activity is reflected below:


	Shares Subject to Option	Weighted- Average Exercise or Grant Price Per Share	Average Remaining Contractual Term	Aggregate Intrinsic Value
Balance at January 1, 2022	23,503,759	$42.65	5 years	$	556	million
Annual grant to eligible employees	2,180,540	64.65
Additional options issued	41,930	64.99
Total options granted	2,222,470	64.66
Options exercised (1)	(3,754,667)	36.04		$	111	million
Options canceled	(435,613)	55.31
Balance at September 30, 2022	21,535,949	45.82	5 years	$	226	million

(1)Cash received from options exercised was $22 million in the three months and $123 million in the nine months ended September 30, 2022. The actual tax benefit realized and recorded in the provision for income taxes for the tax deductions from the option exercises totaled $3 million in the three months and $17 million in the nine months ended September 30, 2022.

Performance Share Units and Other Stock-Based Awards:

Our performance share unit, deferred stock unit and historically granted restricted stock activity is reflected below:


	Number of Shares	Grant Date	Weighted-Average Fair Value Per Share (3)	Weighted-Average Aggregate Fair Value (3)
Balance at January 1, 2022	4,668,046		$57.04
Annual grant to eligible employees:		Feb 24, 2022
Performance share units	806,590		61.87
Deferred stock units	505,090		64.65
Additional shares granted (1)	737,537	Various	60.42
Total shares granted	2,049,217		62.03	$	127	million
Vested (2)	(1,730,719)		55.36	$	96	million
Forfeited	(398,436)		60.66
Balance at September 30, 2022	4,588,108		59.59

(1)Includes performance share units and deferred stock units.

(2)The actual tax benefit realized and recorded in the provision for income taxes for the tax deductions from the shares vested totaled less than $1 million in the three months and $4 million in the nine months ended September 30, 2022.

(3)The grant date fair value of performance share units is determined based on the Monte Carlo simulation model for the market-based total shareholder return component and the closing market price of the Company’s stock on the grant date for performance-based components. The Monte Carlo simulation model incorporates the probability of achieving the total shareholder return market condition. Compensation expense is recognized using the grant date fair values regardless of whether the market condition is achieved, so long as the requisite service has been provided.

Share Repurchase Program:

Between 2013 and 2020, our Board of Directors authorized the repurchase of a total of $23.7 billion of our Common Stock and extended the program through December 31, 2023. Repurchases under the program are determined by management and are wholly discretionary. Prior to January 1, 2022, we had repurchased approximately $20.0 billion of Common Stock pursuant to this authorization. During the nine months ended September 30, 2022, we repurchased approximately 29 million shares of Common Stock at an average cost of $63.78 per share, or an aggregate cost of approximately $1.8 billion, all of which was paid during the period except for approximately $20 million settled in October 2022. All share repurchases were funded through available cash and commercial paper issuances. As of September 30, 2022, we have approximately $1.8 billion in remaining share repurchase capacity.