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Stock-Based Compensation
 9 Months Ended
Sep. 30, 2022
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation Stock-Based Compensation
Third QuarterFirst Nine Months
2022202120222021
($ in millions)
Stock-based compensation expense$13 $14 $49 $46 
Total tax benefit7 3 24 28 

During 2022, we granted stock options, restricted stock units (RSUs) and performance share units (PSUs) pursuant to the Long-Term Incentive Plan (LTIP), as follows:

Third QuarterFirst Nine Months
GrantedWeighted-Average Grant-Date Fair ValueGrantedWeighted-Average Grant-Date Fair Value
Stock options6,000 $74.95 139,810 $61.30 
RSUs9,993 240.63 173,984 266.72 
PSUs6,960 256.12 58,415 272.48 
Stock Options
Third QuarterFirst Nine Months
2022202120222021
($ in millions)
Options exercised116,88122,502 275,770 363,982 
Cash received upon exercise$9 $2 $23 $33 
Related tax benefits realized5 1 11 13 

Restricted Stock Units

RSUs granted primarily have a four-year ratable restriction period and will be settled through the issuance of shares of Norfolk Southern common stock (Common Stock). Certain RSU grants include cash dividend equivalent payments during the restriction period in an amount equal to the regular quarterly dividends paid on Common Stock. 
Third QuarterFirst Nine Months
2022202120222021
($ in millions)
RSUs vested557 1,100 247,510 260,227 
Common Stock issued net of tax withholding397 761 175,373 184,272 
Related tax benefits realized$— $— $5 $7 

Performance Share Units

PSUs provide for awards based on the achievement of certain predetermined corporate performance goals at the end of a three-year cycle and are settled through the issuance of shares of Common Stock. All PSUs will earn out based on the achievement of performance conditions and some will also earn out based on a market condition. The market condition fair value was measured on the date of grant using a Monte Carlo simulation model. No PSUs were
earned or paid out during the third quarters of 2022 or 2021.

First Nine Months
20222021
($ in millions)
PSUs earned86,420 78,727 
Common Stock issued net of tax withholding54,651 49,967 
Related tax benefits realized$1 $1