XML 52 R21.htm IDEA: XBRL DOCUMENT
v3.25.0.1

Stock Plans | 12 Months Ended
--- | ---
Dec. 31, 2024
Share-Based Payment Arrangement [Abstract] |
Stock Plans | Note 12. Stock Plans On May 22, 2024, our shareholders approved the 2024 Performance Incentive Plan (the “2024 PIP”), which replaced our Amended and Restated 2005 Performance Incentive Plan (the “2005 Plan”). Under the 2024 PIP, we are now authorized to issue a maximum of 50.7 million shares of our Common Stock. During the year ended December 31, 2024, we granted 154,907 shares under the 2024 PIP and 391,513 shares were forfeited, which were added to the 2024 PIP. As of December 31, 2024, there were 50.9 million shares available to be granted. Stock Options We recorded compensation expense related to stock options held by our employees of $30 million in 2024, $25 million in 2023 and $20 million in 2022 in our results from continuing operations. The deferred tax benefit recorded related to this compensation expense was $5 million in 2024, $4 million in 2023 and $3 million in 2022. The unamortized compensation expense related to our employee stock options was $26 million at December 31, 2024 and is expected to be recognized over a weighted-average period of 1.6 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
2024 | 4.21% |  | 5 years |  | 20.93% |  | 2.33% |  | $15.23
2023 | 4.18% |  | 5 years |  | 20.97% |  | 2.32% |  | $13.57
2022 | 1.87% |  | 5 years |  | 22.05% |  | 2.13% |  | $11.24
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, 2022 | 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 |  |  |  |  | $ | 420 | million
Annual grant to eligible employees | 2,261,810 |  |  | 73.13 |  |  |  |  |
Additional options issued | 35,820 |  |  | 66.89 |  |  |  |  |
Total options granted | 2,297,630 |  |  | 73.03 |  |  |  |  |
Options exercised (1) | (4,096,571) |  |  | 43.30 |  |  |  |  | $ | 121 | million
Options cancelled | (400,010) |  |  | 63.40 |  |  |  |  |
Balance at December 31, 2024 | 16,479,169 |  |  | 54.51 |  |  | 5 years |  | $ | 135 | million
Exercisable at December 31, 2024 | 12,415,138 |  |  | 49.67 |  |  | 4 years |  | $ | 135 | million
(1)Cash received from options exercised was $175 million in 2024, $152 million in 2023 and $158 million in 2022. The actual tax benefit realized and recorded in the provision for income taxes for the tax deductions from the option exercises totaled $19 million in 2024, $21 million in 2023 and $22 million in 2022. 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 $117 million in 2024, $121 million in 2023 and $100 million in 2022 in our results from continuing operations. The deferred tax benefit recorded related to this compensation expense was $19 million in 2024, $18 million in 2023 and $17 million in 2022. The unamortized compensation expense related to our DSUs, PSUs and other stock-based awards was $132 million at December 31, 2024 and is expected to be recognized over a weighted-average period of 1.6 years. Our PSU, DSU and other stock-based award activity is reflected below:
| Number of Shares |  |  |  | Weighted-Average Fair Value Per Share (4) |  | Weighted-Average Aggregate Fair Value (3)
Balance at January 1, 2022 | 4,668,046 |  |  |  |  | $ | 57.04 |  |  |
Annual grant to eligible employees: |  |  |  |  |  |  |
Performance share units | 806,590 |  |  |  |  | 61.87 |  |  |
Deferred stock units | 505,090 |  |  |  |  | 64.65 |  |  |
Additional shares granted (1) | 836,117 |  |  |  |  | 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: |  |  |  |  |  |  |
Performance share units | 895,410 |  |  |  |  | 68.59 |  |  |
Deferred stock units | 578,570 |  |  |  |  | 65.36 |  |  |
Additional shares granted (1) | 765,128 |  |  |  |  | 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 |  |  |
Annual grant to eligible employees: |  |  |  |  |  |  |
Performance share units | 787,110 |  |  |  |  | 75.05 |  |  |
Deferred stock units | 571,490 |  |  |  |  | 73.13 |  |  |
Additional shares granted (1) | 1,089,698 |  |  |  |  | 63.60 |  |  |
Total shares granted | 2,448,298 |  |  |  |  | 69.50 |  |  | $ | 170 | million
Vested (2) (3) | (2,075,329) |  |  |  |  | 58.51 |  |  | $ | 121 | million
Forfeited (2) | (389,561) |  |  |  |  | 66.91 |  |  |
Balance at December 31, 2024 | 4,536,574 |  |  |  |  | 67.76 |  |  |
(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 $7 million in 2024, $3 million in 2023 and $5 million in 2022. (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.

X
- Definition The entire disclosure for share-based payment arrangement. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a)(1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480429/718-10-50-2 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/718/tableOfContent Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480429/718-10-50-2 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (h)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480429/718-10-50-2 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (h)(2)(i) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480429/718-10-50-2 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (l) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480429/718-10-50-2 + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsSharebasedPaymentsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration