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Stock Plans | 12 Months Ended
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Dec. 31, 2023
Share-Based Payment Arrangement [Abstract] |
Stock Plans | Note 12. Stock Plans Under our Amended and Restated 2005 Performance Incentive Plan (the “2005 Plan”), we are authorized through May 21, 2024 to issue a maximum of 243.7 million shares of our Class A common stock (“Common Stock”) to employees and non-employee directors. As of December 31, 2023, there were 41.5 million shares available to be granted under the 2005 Plan. Stock Options We recorded compensation expense related to stock options held by our employees of $25 million in 2023, $20 million in 2022 and $23 million in 2021 in our results from continuing operations. The deferred tax benefit recorded related to this compensation expense was $4 million in 2023, $3 million in 2022 and $4 million in 2021. The unamortized compensation expense related to our employee stock options was $26 million at December 31, 2023 and is expected to be recognized over a weighted-average period of 1.7 years. Our weighted-average Black-Scholes Model fair value assumptions were:
| Risk-Free Interest Rate |  | Expected Life |  | Expected Volatility |  | Expected Dividend Yield |  | Fair Value at Grant Date
2023 | 4.18% |  | 5 years |  | 20.97% |  | 2.32% |  | $13.57
2022 | 1.87% |  | 5 years |  | 22.05% |  | 2.13% |  | $11.24
2021 | 0.57% |  | 5 years |  | 23.45% |  | 2.20% |  | $9.08
The risk-free interest rate represents the constant maturity U.S. government treasuries rate with a remaining term equal to the expected life of the options. The expected life is the period over which our employees are expected to hold their options. Volatility reflects historical movements in our stock price for a period commensurate with the expected life of the options. The dividend yield reflects the dividend yield in place at the time of the historical grants. 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, 2021 | 27,751,894 |  |  | $ | 39.51 |  |  |  |  | $ | 527 | million
Annual grant to eligible employees | 2,412,710 |  |  | 56.13 |  |  |  |  |
Additional options issued | 160,640 |  |  | 58.17 |  |  |  |  |
Total options granted | 2,573,350 |  |  | 56.26 |  |  |  |  |
Options exercised (1) | (6,249,330) |  |  | 33.68 |  |  |  |  | $ | 169 | million
Options cancelled | (572,155) |  |  | 49.65 |  |  |  |  |
Balance at December 31, 2021 | 23,503,759 |  |  | 42.65 |  |  |  |  | $ | 556 | million
Annual grant to eligible employees | 2,180,540 |  |  | 64.65 |  |  |  |  |
Additional options issued | 63,490 |  |  | 64.39 |  |  |  |  |
Total options granted | 2,244,030 |  |  | 64.64 |  |  |  |  |
Options exercised (1) | (4,780,086) |  |  | 35.96 |  |  |  |  | $ | 142 | million
Options cancelled | (477,453) |  |  | 55.89 |  |  |  |  |
Balance at December 31, 2022 | 20,490,250 |  |  | 46.31 |  |  |  |  | $ | 417 | million
Annual grant to eligible employees | 2,452,110 |  |  | 65.36 |  |  |  |  |
Additional options issued | 24,210 |  |  | 68.93 |  |  |  |  |
Total options granted | 2,476,320 |  |  | 65.39 |  |  |  |  |
Options exercised (1) | (3,894,213) |  |  | 39.59 |  |  |  |  | $ | 123 | million
Options cancelled | (394,237) |  |  | 59.41 |  |  |  |  |
Balance at December 31, 2023 | 18,678,120 |  |  | 49.96 |  |  | 5 years |  | $ | 420 | million
Exercisable at December 31, 2023 | 14,500,549 |  |  | 45.98 |  |  | 4 years |  | $ | 384 | million
(1)Cash received from options exercised was $152 million in 2023, $158 million in 2022 and $206 million in 2021. The actual tax benefit realized and recorded in the provision for income taxes for the tax deductions from the option exercises totaled $21 million in 2023, $22 million in 2022 and $24 million in 2021. Deferred Stock Units, Performance Share Units and Other Stock-Based Awards We recorded compensation expense related to DSUs, PSUs and other stock-based awards of $121 million in 2023, $100 million in 2022 and $98 million in 2021 in our results from continuing operations. The deferred tax benefit recorded related to this compensation expense was $18 million in 2023, $17 million in 2022 and $16 million in 2021. The unamortized compensation expense related to our DSUs, PSUs and other stock-based awards was $146 million at December 31, 2023 and is expected to be recognized over a weighted-average period of 1.7 years. Our PSU, DSU and other stock-based award activity is reflected below:
| Number of Shares |  | Grant Date |  | Weighted-Average Fair Value Per Share (4) |  | Weighted-Average Aggregate Fair Value (3)
Balance at January 1, 2021 | 4,896,990 |  |  |  |  | $ | 53.80 |  |  |
Annual grant to eligible employees: |  |  | Feb 18, 2021 |  |  |  |
Performance share units | 903,250 |  |  |  |  | 59.35 |  |  |
Deferred stock units | 550,090 |  |  |  |  | 56.13 |  |  |
Additional shares granted (1) | 1,163,644 |  |  | Various |  | 53.76 |  |  |
Total shares granted | 2,616,984 |  |  |  |  | 56.19 |  |  | $ | 147 | million
Vested (2) (3) | (2,459,427) |  |  |  |  | 49.59 |  |  | $ | 122 | million
Forfeited (2) | (386,501) |  |  |  |  | 57.52 |  |  |
Balance at December 31, 2021 | 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) | 836,117 |  |  | Various |  | 59.37 |  |  |
Total shares granted | 2,147,797 |  |  |  |  | 61.55 |  |  | $ | 132 | million
Vested (2) (3) | (1,925,556) |  |  |  |  | 54.13 |  |  | $ | 104 | million
Forfeited (2) | (438,613) |  |  |  |  | 60.68 |  |  |
Balance at December 31, 2022 | 4,451,674 |  |  |  |  | 60.12 |  |  |
Annual grant to eligible employees: |  |  | Mar 2, 2023 |  |  |  |
Performance share units | 895,410 |  |  |  |  | 68.59 |  |  |
Deferred stock units | 578,570 |  |  |  |  | 65.36 |  |  |
Additional shares granted (1) | 765,128 |  |  | Various |  | 65.99 |  |  |
Total shares granted | 2,239,108 |  |  |  |  | 66.86 |  |  | $ | 150 | million
Vested (2) (3) | (1,772,439) |  |  |  |  | 61.92 |  |  | $ | 110 | million
Forfeited (2) | (365,177) |  |  |  |  | 62.66 |  |  |
Balance at December 31, 2023 | 4,553,166 |  |  |  |  | 62.53 |  |  |
(1)Includes PSUs and DSUs. (2)Includes PSUs, DSUs and other stock-based awards. (3)The actual tax benefit realized and recorded in the provision for income taxes for the tax deductions from the shares vested totaled $3 million in 2023, $5 million in 2022 and $6 million in 2021. (4)The grant date fair value of PSUs 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.

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