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Share-Based Compensation (Tables) | 12 Months Ended
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Dec. 31, 2023
Share-Based Payment Arrangement [Abstract] |
Valuation assumptions |
| Year Ended December 31,
| 2023 |  | 2022 |  | 2021
Dividend yield | — | % |  | — | % |  | — | %
Expected volatility | 25.1 | % |  | 24.0 | % |  | 24.2 | %
Risk free interest rate | 4.1 | % |  | 2.0 | % |  | 1.0 | %
Expected option life | 6.0 years |  | 6.0 years |  | 6.0 years
Option activity | A summary of stock option and SAR activity under the Company’s Long Term Incentive and Share Award Plans during 2023 is presented below:
| Year Ended December 31, 2023
| Number of Options / SARs |  | Weighted Average Exercise Price |  | Weighted Average Contractual Term |  | Aggregate Intrinsic Value
Outstanding, beginning of year | 14,420,901 |  |  | $ | 28.17 |  |  |  |  |
Granted | 479,760 |  |  | $ | 69.24 |  |  |  |  |
Exercised | (2,355,729) |  |  | $ | 20.66 |  |  |  |  |
Forfeited or expired | (8,339) |  |  | $ | 48.38 |  |  |  |  |
Outstanding, end of year | 12,536,593 |  |  | $ | 31.14 |  |  | 4.10 |  | $ | 541 |
Exercisable, end of year | 11,205,102 |  |  | $ | 28.68 |  |  | 3.61 |  | $ | 511 |
Weighted average grant date fair value |
| Year Ended December 31,
| 2023 |  | 2022 |  | 2021
Weighted average grant date fair value | $ | 23.50 |  |  | $ | 13.26 |  |  | $ | 9.22 |
Aggregate intrinsic value of Options/SARs exercised (in millions) | $ | 116 |  |  | $ | 113 |  |  | $ | 47 |
Unvested restricted share and unit activity | A summary of restricted share and restricted unit activity under the Company’s Long Term Incentive and Share Award Plans for 2023 is presented below:
| Number of Restricted Common Shares |  | Number of Restricted Unit Awards
Unvested Shares: |  |  |
Unvested balance, beginning of year | 2,165,554 |  |  | 517,293 |
Granted | 678,657 |  |  | 146,534 |
Vested | (1,281,449) |  |  | (352,190) |
Forfeited | (38,157) |  |  | (5,709) |
Unvested balance, end of year | 1,524,605 |  |  | 305,928 |
Weighted Average Grant Date Fair Value: |  |  |
Unvested balance, beginning of year | $ | 40.23 |  |  | $ | 37.17 |
Granted | $ | 69.47 |  |  | $ | 69.20 |
Vested | $ | 38.37 |  |  | $ | 34.16 |
Forfeited | $ | 49.65 |  |  | $ | 55.55 |
Unvested balance, end of year | $ | 54.57 |  |  | $ | 55.63 |
Performance shares and units, valuation assumptions |
| Year Ended December 31,
| 2023 |  | 2022 |  | 2021
Expected volatility | 30.4 | % |  | 38.1 | % |  | 37.5 | %
Risk free interest rate | 4.6 | % |  | 1.7 | % |  | 0.3 | %
Unvested performance share and unit activity |
| Number of Performance Shares |  | Number of Performance Units
Unvested Shares: |  |  |
Unvested balance, beginning of year | 1,882,916 |  |  | 39,710 |
Granted | 550,394 |  |  | 18,182 |
Performance adjustment (1) (2) | (341,420) |  |  | (2,024) |
Vested | (207,486) |  |  | (6,274) |
Forfeited | (3,708) |  |  | — |
Unvested balance, end of year | 1,880,696 |  |  | 49,594 |
Weighted Average Grant Date Fair Value: |  |  |
Unvested balance, beginning of year | $ | 43.75 |  |  | $ | 45.33 |
Granted | $ | 74.08 |  |  | $ | 74.31 |
Performance adjustment (1) (2) | $ | 44.17 |  |  | $ | 44.17 |
Vested | $ | 44.17 |  |  | $ | 44.17 |
Forfeited | $ | 59.83 |  |  | $ | — |
Unvested balance, end of year | $ | 52.47 |  |  | $ | 56.15 |
(1) The performance adjustment represents the difference between the number of performance shares granted and earned, which vested following the end of the performance period. The performance shares were granted at the maximum level of achievement. (2) The performance adjustment represents the change in PSUs, which vested following the end of the performance period. The performance units were granted at the target level of achievement.
Share based compensation expense | The following tables present pre-tax and after-tax share-based compensation expense recognized as well as the unrecognized compensation cost associated with unvested awards and the weighted average period over which it is expected to be recognized.
| Year Ended December 31,
| 2023 |  | 2022 |  | 2021
Pre-Tax |  |  |  |  |
Stock options and SARs | $ | 11 |  |  | $ | 12 |  |  | $ | 12 |
Restricted share and unit awards | 54 |  |  | 50 |  |  | 47 |
Performance awards | 23 |  |  | 22 |  |  | 24 |
ESPP | 4 |  |  | 4 |  |  | 4 |
Total | $ | 92 |  |  | $ | 88 |  |  | $ | 87 |
After-Tax |  |  |  |  |
Stock options and SARs | $ | 10 |  |  | $ | 11 |  |  | $ | 11 |
Restricted share and unit awards | 45 |  |  | 42 |  |  | 39 |
Performance awards | 21 |  |  | 20 |  |  | 22 |
ESPP | 4 |  |  | 4 |  |  | 4 |
Total | $ | 80 |  |  | $ | 77 |  |  | $ | 76 |
Unrecognized compensation cost |
| December 31, 2023
| Stock Options and SARs |  | Restricted Common Shares and Units |  | Performance Common Shares and Units
Unrecognized compensation cost related to unvested awards | $ | 7 |  |  | $ | 43 |  |  | $ | 11 |
Weighted average recognition period (years) | 0.67 |  | 0.95 |  | 0.44
Restricted Common Shares And Restricted Units |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] |
Weighted average grant date fair value of restricted stock | The following table presents the weighted average grant date fair value of restricted shares and restricted unit awards granted and the aggregate fair value of restricted shares and unit awards vesting in each year.
| Year Ended December 31,
| 2023 |  | 2022 |  | 2021
Number of restricted shares and restricted unit awards granted | 825,191 |  |  | 1,089,393 |  |  | 1,261,773 |
Weighted average grant date fair value | $ | 69.42 |  |  | $ | 47.45 |  |  | $ | 36.12 |
Aggregate fair value of vested restricted share and unit awards (in millions) | $ | 122 |  |  | $ | 51 |  |  | $ | 41 |
Performance Common Shares and Units |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] |
Weighted average grant date fair value of restricted stock | The following table presents the weighted average grant date fair values of performance awards granted.
| Year Ended December 31,
| 2023 |  | 2022 |  | 2021
Number of performance awards | 568,576 |  |  | 690,772 |  |  | 685,104 |
Weighted average grant date fair value | $ | 74.09 |  |  | $ | 49.91 |  |  | $ | 37.38 |
Aggregate fair value of vested performance share and unit awards (in millions) | $ | 14 |  |  | $ | 27 |  |  | $ | 24 |
The aggregate intrinsic value of performance units outstanding at December 31, 2023 was $4 million.

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