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Stock Compensation | 12 Months Ended
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Dec. 31, 2022
Equity [Abstract] |
Stock Compensation | Stock Compensation The Company’s employee stock compensation plans provide for the granting of options to employees to purchase common stock of the Company pursuant to the Company’s 2020 Incentive Compensation Plan. These options are issued at market value on the date of grant, vest incrementally over one year to five years, and expire ten years after the date of grant. The fair value of each option grant is estimated as of the date of grant using the Black-Scholes single option pricing model. The volatility assumption used in the Black-Scholes single option pricing model is based on the historical volatility of the Company’s stock. The volatility of the Company’s stock was calculated based upon the monthly closing price of the Company’s stock for the period immediately prior to the date of grant corresponding to the average expected life of the grant. The average expected life represents the period of time that option grants are expected to be outstanding. The risk-free rate is based on the rate of U.S. Treasury zero-coupon issues with a remaining term equal to the expected life of option grants. No options were granted in 2022, 2021, and 2020. A summary of option activity during 2022 is presented below:
| Shares |  | Weighted-Average Exercise Price
| (In thousands, except per share amounts)
Shares under option at December 31, 2021 | 4,584 |  |  | $37.20
Exercised | (2,484) |  |  | 36.30
Forfeited or expired | (3) |  |  | 26.25
Shares under option at December 31, 2022 | 2,097 |  |  | $38.27
Exercisable at December 31, 2022 | 2,097 |  |  | $38.27
The weighted-average remaining contractual term of options outstanding and exercisable at December 31, 2022, is 3 years and 3 years, respectively. The aggregate intrinsic value of options outstanding and exercisable at December 31, 2022, is $115 million and $115 million, respectively. The total intrinsic values of options exercised during the years ended December 31, 2022, 2021, and 2020, were $117 million, $37 million, and $32 million, respectively. Cash proceeds received from options exercised during the years ended December 31, 2022, 2021, and 2020, were $90 million, $64 million, and $49 million, respectively. At December 31, 2022, unrecognized compensation expense related to option grants to be recognized as compensation expense during the next year was immaterial. The Company’s 2020 Incentive Compensation Plan provides for the granting of restricted stock and restricted stock units (Restricted Stock Awards) at no cost to certain officers and key employees. In addition, the Company’s 2020 Incentive Compensation Plan also provides for the granting of performance stock units (PSUs) at no cost to certain officers and key employees. Restricted Stock Awards are made in common stock or stock units with equivalent rights and vest at the end of a restriction period of three years. In 2022, the awards for PSUs are made in common stock units and vest at the end of a vesting period of three years subject to the attainment of certain future service and performance criteria based on the Company’s adjusted return on invested capital (ROIC) and adjusted earnings per share (EPS) with a modifier for gender parity and greenhouse gas emissions. During the years ended December 31, 2022, 2021, and 2020, 2.3 million, 2.7 million, and 2.7 million common stock or stock units, respectively, were granted as Restricted Stock Awards and PSUs. At December 31, 2022, there were 14.7 million shares available for future grants pursuant to the 2020 plan. The fair value of Restricted Stock Awards is determined based on the market value of the Company’s shares on the grant date. In 2022, the fair value of PSUs issued was based on the weighted-average values of adjusted ROIC and adjusted EPS determined based on the market value of the Company’s shares on the grant date. In 2021 and 2020, the fair value of PSUs issued was based on the weighted-average values of adjusted ROIC and compound average growth rate of Nutrition’s segment operating profit determined based on the market value of the Company’s shares on the grant date. The weighted-average grant-date fair values of awards granted during the years ended December 31, 2022, 2021, and 2020 were $70.13, $53.28, and $45.59, respectively. A summary of Restricted Stock Awards and PSUs activity during 2022 is presented below:
| Restricted Stock Awards and PSUs |  | Weighted Average Grant-Date Fair Value
| (In thousands, except per share amounts)
Non-vested at December 31, 2021 | 7,135 |  |  | $47.27
Granted | 2,267 |  |  | 70.13
Vested | (2,794) |  |  | 42.02
Forfeited | (200) |  |  | 63.15
Non-vested at December 31, 2022 | 6,408 |  |  | $57.22
At December 31, 2022, there was $95 million of total unrecognized compensation expense related to Restricted Stock Awards and PSUs. Amounts to be recognized as compensation expense during the next three years are $61 million, $31 million, and $3 million, respectively. The total grant-date fair value of Restricted Stock Awards that vested during the year ended December 31, 2022 was $117 million. Compensation expense for option grants, Restricted Stock Awards, and PSUs granted to employees is generally recognized on a straight-line basis during the service period of the respective grant. Certain of the Company’s option grants, Restricted Stock Awards, and PSUs continue to vest upon the recipient’s retirement from the Company and compensation expense related to option grants and Restricted Stock Awards granted to retirement-eligible employees is recognized in earnings on the date of grant. Compensation expense for PSUs is based on the probability of meeting the performance criteria. The Company recognizes forfeitures as they occur. Total compensation expense for option grants, Restricted Stock Awards, and PSUs recognized during the years ended December 31, 2022, 2021, and 2020 was $147 million, $161 million, and $151 million, respectively. Changes in incentive compensation expense are primarily caused by the level of attainment of the PSU performance criteria described above.

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