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STOCK-BASED COMPENSATION (Tables)
 12 Months Ended
Dec. 31, 2021
Share-based Payment Arrangement [Abstract]  
Schedule of Share-based Payment Award, Valuation Assumptions
The following table summarizes fair value information for stock options and stock appreciation rights:

2021 (1)
2020 (1)
2019 (2)
Stock options and stock appreciation rights weighted-average fair value per award$10.13 $4.67 $21.02 
Assumptions:
Volatility
31.6% to 34.1%
32.1% to 35.6%
18.8% to 19.7%
Expected term (in years)6.6
7.0
6.5 to 6.6
Expected dividend yield
1.5%
1.4% to 2.0%
2.4%
Range of risk-free rates
0.7% to 1.4%
0.1% to 1.0%
2.3% to 2.7%
(1) Carrier has limited historical trading data and used peer group data to estimate expected volatility for the 2021 and 2020 awards.
(2) The assumptions for 2019 were determined by UTC based on UTC's stock price performance.
Share-based Payment Arrangement, Activity
Changes in stock options and stock appreciation rights outstanding subsequent to the Separation and Distribution were as follows:

Shares Subject to Option
(in thousands)		Weighted-Average Exercise PriceAggregate Intrinsic Value
(in millions)		Weighted- Average Remaining Life
(in years)
As of April 3, 202036,015 $19.90 
Granted 3,921 $17.57 
Exercised(2,620)$15.81 
Cancelled(584)$22.31 
As of December 31, 202036,732 $19.91 
Granted3,194 $38.92 
Exercised(5,934)$17.59 
Cancelled(1,551)$23.98 
Outstanding as of December 31, 202132,441 $22.02 $1,046 6.3
Exercisable as of December 31, 202114,613 $18.96 $516 4.3
Changes in restricted stock units subsequent to the Separation and Distribution were as follows:
RSUs
(in thousands)
Weighted-Average Grant Date Fair Value
Outstanding and unvested as of April 3, 20205,622 $21.37 
Granted 523 $21.43 
Vested(483)$19.74 
Cancelled(88)$23.29 
Outstanding and unvested as of December 31, 20205,574 $21.57 
Granted286 $46.49 
Vested(2,168)$21.45 
Cancelled(122)$25.39 
Outstanding and unvested as of December 31, 20213,570 $23.33 
Changes in PSUs subsequent to the Separation and Distribution were as follows:

PSUs
(in thousands)
Weighted-Average Grant Date Fair Value
Outstanding and unvested as of April 3, 202068 $21.23 
Granted728 $18.23 
Forfeited(24)$19.25 
Outstanding and unvested as of December 31, 2020772 $18.46 
Granted821 $41.48 
Vested(20)$23.72 
Forfeited(152)$27.28 
Outstanding and unvested as of December 31, 20211,421 $30.75 
Share-based Payment Arrangement, Expensed and Capitalized, Amount
Stock-based compensation cost by award type are as follows:

(In millions)2021
2020 (1)
2019 (1)
Equity compensation costs - equity settled$92 $77 $52 
Equity compensation costs - cash settled (2)
19 11 6 
Total stock-based compensation cost$111 $88 $58 
Income tax benefit$13 $9 $11 
(1) The stock-based compensation cost for 2020 and 2019 include amounts allocated to Carrier by UTC related to its direct employees.
(2) The cash settled awards are classified as liability awards and are measured at fair value at each balance sheet date.