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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 LifeExpected
Volatility		Expected
Dividend Yield		Fair Value
at Grant Date
20244.21%5 years20.93%2.33%$15.23
20234.18%5 years20.97%2.32%$13.57
20221.87%5 years22.05%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, 202223,503,759 $42.65 $556  million
Annual grant to eligible employees2,180,540 64.65 
Additional options issued63,490 64.39 
Total options granted2,244,030 64.64 
Options exercised (1)
(4,780,086)35.96 $142  million
Options cancelled(477,453)55.89 
Balance at December 31, 202220,490,250 46.31 $417  million
Annual grant to eligible employees2,452,110 65.36 
Additional options issued24,210 68.93 
Total options granted2,476,320 65.39 
Options exercised (1)
(3,894,213)39.59 $123  million
Options cancelled(394,237)59.41 
Balance at December 31, 202318,678,120 49.96 $420  million
Annual grant to eligible employees2,261,810 73.13 
Additional options issued35,820 66.89 
Total options granted2,297,630 73.03 
Options exercised (1)
(4,096,571)43.30 $121  million
Options cancelled(400,010)63.40 
Balance at December 31, 202416,479,169 54.51 5 years$135  million
Exercisable at December 31, 202412,415,138 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, 20224,668,046 $57.04 
Annual grant to eligible employees:
Performance share units806,590 61.87 
Deferred stock units505,090 64.65 
Additional shares granted (1)
836,117 59.37 
Total shares granted2,147,797 61.55 $132  million
Vested (2) (3)
(1,925,556)54.13 $104  million
Forfeited (2)
(438,613)60.68 
Balance at December 31, 20224,451,674 60.12 
Annual grant to eligible employees:
Performance share units895,410 68.59 
Deferred stock units578,570 65.36 
Additional shares granted (1)
765,128 65.99 
Total shares granted2,239,108 66.86 $150  million
Vested (2) (3)
(1,772,439)61.92 $110  million
Forfeited (2)
(365,177)62.66 
Balance at December 31, 20234,553,166 62.53 
Annual grant to eligible employees:
Performance share units787,110 75.05 
Deferred stock units571,490 73.13 
Additional shares granted (1)
1,089,698 63.60 
Total shares granted2,448,298 69.50 $170  million
Vested (2) (3)
(2,075,329)58.51 $121  million
Forfeited (2)
(389,561)66.91 
Balance at December 31, 20244,536,574 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.