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Share-Based Compensation (Tables)
 12 Months Ended
Dec. 31, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Summary of Share-Based Compensation Expense
The following table shows the total share-based compensation expense resulting from equity awards and the 15.0% discount for the ESPP for the years ended December 31, 2018, 2017 and 2016 in the Consolidated Statements of Income:
 
Year Ended December 31,
 
2018
 
2017
 
2016
 
(in millions)
Share-based compensation expense before income taxes
$
69

 
$
70

 
$
86

Income tax benefit
(19
)
 
(29
)
 
(35
)
Share-based compensation expense after income taxes
$
50

 
$
41

 
$
51
Summary of Restricted Stock Activity
The following table summarizes our restricted stock activity for the years ended December 31, 2018, 2017 and 2016:
 
Restricted Stock
 
Number of Awards
 
Weighted-Average Grant Date Fair Value
 
 
 
 
Unvested balances at December 31, 2015
3,343,738

 
$
35.36

Granted
724,200

 
$
62.91

Vested
(1,238,980
)
 
$
27.91

Forfeited
(268,380
)
 
$
43.29

Unvested balances at December 31, 2016
2,560,578

 
$
45.92

Granted
737,864

 
$
67.48

Vested
(1,102,823
)
 
$
38.56

Forfeited
(207,119
)
 
$
52.29

Unvested balances at December 31, 2017
1,988,500

 
$
57.34

Granted
550,544

 
$
81.66

Vested
(702,832
)
 
$
48.64

Forfeited
(252,837
)
 
$
63.86

Unvested balances at December 31, 2018
1,583,375

 
$
68.62
Schedule of Weighted-Average Assumptions Used to Determine the Weighted-Average Fair Values
The following weighted-average assumptions were used to determine the weighted-average fair values of the PSU awards granted under the three-year PSU program:
 
Year Ended December 31,
 
2018
 
2017
Weighted-average risk free interest rate(1)
2.36
%
 
1.44
%
Expected volatility(2)
18.7
%
 
19.2
%
Weighted-average grant date share price
$86.24
 
$69.45
Weighted-average fair value at grant date
$116.86
 
$81.57
____________
(1) 
The risk-free interest rate for periods within the expected life of the award is based on the U.S. Treasury yield curve in effect at the time of grant.
(2) 
We use historic volatility for PSU awards issued under the three-year PSU program, as implied volatility data could not be obtained for all the companies in the peer groups used for relative performance measurement within the program.
Summary of PSU Activity
The following table summarizes our PSU activity for the years ended December 31, 2018, 2017 and 2016:
 
PSUs
 
One-Year Program
 
Three-Year Program
 
Number of Awards
 
Weighted-Average Grant Date Fair Value
 
Number of Awards
 
Weighted-Average Grant Date Fair Value
Unvested balances at December 31, 2015
423,967

 
$
41.34

 
1,439,718

 
$
49.41

Granted(1)
242,642

 
$
58.33

 
761,501

 
$
66.89

Vested
(242,793
)
 
$
39.63

 
(879,926
)
 
$
43.81

Forfeited
(45,050
)
 
$
47.72

 
(6,625
)
 
$
69.11

Unvested balances at December 31, 2016
378,766

 
$
52.55

 
1,314,668

 
$
63.18

Granted(1)
197,075

 
$
65.51

 
803,712

 
$
55.57

Vested
(202,073
)
 
$
49.93

 
(1,079,925
)
 
$
42.83

Forfeited
(40,764
)
 
$
55.92

 
(28,497
)
 
$
87.86

Unvested balances at December 31, 2017
333,004

 
$
61.39

 
1,009,958

 
$
78.18

Granted(1)
177,831

 
$
80.97

 
484,075

 
$
90.92

Vested
(170,257
)
 
$
58.49

 
(655,204
)
 
$
64.08

Forfeited
(26,347
)
 
$
61.83

 
(1,079
)
 
$
81.57

Unvested balances at December 31, 2018
314,231

 
$
74.01

 
837,750

 
$
96.57


____________
(1) 
Includes target awards granted and certain additional awards granted based on overachievement of performance parameters.
Summary of Stock Options, Valuation Assumptions
We estimated the fair value of this stock option award using the Black-Scholes valuation model using the following assumptions:
Expected life (in years)
6

Weighted-average risk free interest rate
2.1
%
Expected volatility
25.6
%
Dividend yield
1.92
%
Summary of Stock Option Activity
A summary of stock option activity for the years ended December 31, 2018, 2017 and 2016 is as follows:
 
Number of Stock Options
 
Weighted-Average Exercise Price
 
 
 
 
Outstanding at December 31, 2015
2,626,487

 
$
27.74

Exercised
(1,219,820
)
 
34.00

Forfeited
(296
)
 
23.31

Outstanding at December 31, 2016
1,406,371

 
$
22.32

Granted
268,817

 
66.68

Exercised
(1,102,830
)
 
21.98

Forfeited
(978
)
 
21.33

Outstanding at December 31, 2017
571,380

 
$
43.84

Exercised
(118,094
)
 
24.44

Forfeited
(5,570
)
 
25.29

Outstanding at December 31, 2018
447,716

 
$
49.19

Exercisable at December 31, 2018
268,504

 
$
37.51
Summary of Significant Ranges of Outstanding and Exercisable Stock
The following table summarizes significant ranges of outstanding and exercisable stock options as of December 31, 2018:
 
 
 
 
Outstanding
 
Exercisable
Range of Exercise Prices
 
Number of
Stock Options
 
Weighted-Average Remaining
Contractual Term (in years)
 
Weighted-Average
Exercise Price
 
Aggregate Intrinsic
Value (in millions)
 
Number Exercisable
 
Weighted-Average Remaining
Contractual Term (in years)
 
Weighted-Average
Exercise Price
 
Aggregate Intrinsic
Value (in millions)
$
18.67

-
$
20.10

 
76,844

 
1.17
 
$
19.74

 
$
5

 
76,844

 
1.17
 
$
19.74

 
$
5

$
25.28

-
$
66.68

 
370,872

 
6.42
 
55.29

 
10

 
191,660

 
4.94
 
44.64

 
7

Total
 
 
 
447,716

 
5.52
 
$
49.19

 
$
15

 
268,504

 
3.86
 
$
37.51

 
$
12
Summary of ESPP
The following table summarizes employee activity and expenses associated with the ESPP for the years ended December 31, 2018, 2017 and 2016.
 
Year Ended December 31,
 
2018
 
2017
 
2016
Number of shares purchased by employees
205,785

 
235,859

 
233,464

Weighted-average price of shares purchased
$
66.79

 
$
58.26

 
$
50.39

Compensation expenses
$
3

 
$
3

 
$
4