STOCK INCENTIVE PLANS

12 Months Ended

Dec. 31, 2020

The Company maintains stock incentive plans under which the Company may grant a variety of incentive awards to employees and executives, which include restricted stock units (RSUs), performance shares and deferred stock units. As of December 31, 2020, there were 2.1 million shares available for grant under the plans. When awards are exercised or settled, shares of the Company’s treasury stock are issued.

Pretax stock-based compensation expense included in SG&A was $46 million, $40 million, and $47 million in 2020, 2019 and 2018, respectively, and was primarily comprised of RSUs. Related income tax benefits recognized in earnings were $16 million, $12 million, and $29 million in 2020, 2019 and 2018, respectively.

Restricted Stock Units

The Company awards RSUs to certain employees and executives. RSUs vest generally over periods from one to seven years from issuance. RSU expense for the years ended December 31, 2020, 2019 and 2018 was approximately $32 million, $27 million and $23 million, respectively. The following table summarizes RSU activity (in millions, except for share and per share amounts):


	2020				2019				2018
	Shares		Weighted Average Price Per Share		Shares		Weighted Average Price Per Share		Shares		Weighted Average Price Per Share
Beginning nonvested units	326,124		$	259.88	343,814		$	245.38	352,919		$	226.31
Issued	140,815		$	252.11	96,823		$	299.25	141,775		$	284.98
Canceled	(26,254)		$	257.56	(36,224)		$	253.22	(56,393)		$	245.08
Vested	(123,271)		$	252.05	(78,289)		$	247.96	(94,487)		$	233.75
Ending nonvested units	317,414		$	259.67	326,124		$	259.88	343,814		$	245.38
Fair value of shares vested	$	31			$	19			$	22

At December 31, 2020 there was $41 million of total unrecognized compensation expense related to nonvested RSUs that the Company expects to recognize over a weighted average period of 1.9 years.