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Stock-Based Compensation | 3 Months Ended
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Mar. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
Stock-Based Compensation | STOCK-BASED COMPENSATION Our 2014 Long Term Stock Incentive Plan provides for the issuance of stock-based incentives in various forms to our employees and non-employee Directors. At March 31, 2017, outstanding stock-based incentives were in the form of long-term stock awards, stock options, restricted stock units, phantom stock awards and stock appreciation rights. Pre-tax compensation expense and the related income tax benefit for these stock-based incentives were as follows, in millions:
| Three Months Ended March 31,
| 2017 |  | 2016
Long-term stock awards | $ | 6 |  |  | $ | 5 |
Stock options | 1 |  |  | 1 |
Phantom stock awards and stock appreciation rights | 2 |  |  | 3 |
Total | $ | 9 |  |  | $ | 9 |
Long-Term Stock Awards. Long-term stock awards are granted to our key employees and non-employee Directors and do not cause net share dilution inasmuch as we continue the practice of repurchasing and retiring an equal number of shares in the open market. We granted 770,870 shares of long-term stock awards in the three-month period ended March 31, 2017. Our long-term stock award activity was as follows, shares in millions:
| Three Months Ended March 31,
| 2017 |  | 2016
Unvested stock award shares at January 1 | 4 |  |  | 5 |
Weighted average grant date fair value | $ | 20 |  |  | $ | 17 |
Stock award shares granted | 1 |  |  | 1 |
Weighted average grant date fair value | $ | 34 |  |  | $ | 26 |
Stock award shares vested | 2 |  |  | 2 |
Weighted average grant date fair value | $ | 18 |  |  | $ | 16 |
Stock award shares forfeited | — |  |  | — |
Weighted average grant date fair value | $ | 22 |  |  | $ | 19 |
Unvested stock award shares at March 31 | 3 |  |  | 4 |
Weighted average grant date fair value | $ | 23 |  |  | $ | 20 |
At March 31, 2017 and 2016, there was $63 million and $62 million, respectively, of total unrecognized compensation expense related to unvested stock awards; such awards had a weighted average remaining vesting period of 4 years at both March 31, 2017 and 2016. The total market value (at the vesting date) of stock award shares which vested during the three-month periods ended March 31, 2017 and 2016 was $39 million and $36 million, respectively. Stock Options. Stock options are granted to certain key employees. The exercise price equals the market price of our common stock at the grant date. These options generally become exercisable (vest ratably) over five years beginning on the first anniversary from the date of grant and expire no later than 10 years after the grant date. We granted 397,350 shares of stock options in the three-month period ended March 31, 2017 with a grant date weighted-average exercise price of approximately $34 per share. In the three-month period ended March 31, 2017, no stock option shares were forfeited (including options that expired unexercised). G. STOCK-BASED COMPENSATION (Continued) Our stock option activity was as follows, shares in millions:
|  | Three Months Ended March 31,
|  | 2017 |  |  | 2016
Option shares outstanding, January 1 |  | 7 |  |  |  | 12 |
Weighted average exercise price | $ | 15 |  |  | $ | 17 |
Option shares granted |  | — |  |  |  | — |
Weighted average exercise price | $ | 34 |  |  | $ | 26 |
Option shares exercised |  | — |  |  |  | 1 |
Aggregate intrinsic value on date of exercise (A) | $ | 3 million |  |  | $ | 18 million |
Weighted average exercise price | $ | 23 |  |  | $ | 18 |
Option shares forfeited |  | — |  |  |  | — |
Weighted average exercise price | $ | — |  |  | $ | — |
Option shares outstanding, March 31 |  | 7 |  |  |  | 11 |
Weighted average exercise price | $ | 16 |  |  | $ | 18 |
Weighted average remaining option term (in years) |  | 4 |  |  |  | 4 |
Option shares vested and expected to vest, March 31 |  | 7 |  |  |  | 11 |
Weighted average exercise price | $ | 16 |  |  | $ | 18 |
Aggregate intrinsic value (A) | $ | 131 million |  |  | $ | 154 million |
Weighted average remaining option term (in years) |  | 4 |  |  |  | 4 |
Option shares exercisable (vested), March 31 |  | 6 |  |  |  | 10 |
Weighted average exercise price | $ | 13 |  |  | $ | 17 |
Aggregate intrinsic value (A) | $ | 120 million |  |  | $ | 138 million |
Weighted average remaining option term (in years) |  | 3 |  |  |  | 3 |
(A) | Aggregate intrinsic value is calculated using our stock price at each respective date, less the exercise price (grant date price), multiplied by the number of shares.
At March 31, 2017 and 2016, there was $10 million and $8 million, respectively, of unrecognized compensation expense (using the Black-Scholes option pricing model at the grant date) related to unvested stock options; such options had a weighted average remaining vesting period of three years at both March 31, 2017 and 2016. G. STOCK-BASED COMPENSATION (Concluded) The weighted average grant date fair value of option shares granted and the assumptions used to estimate those values using a Black-Scholes option pricing model were as follows:
| Three Months Ended March 31,
| 2017 |  | 2016
Weighted average grant date fair value | $ | 9.68 |  |  | $ | 6.43 |
Risk-free interest rate | 2.16 | % |  | 1.41 | %
Dividend yield | 1.19 | % |  | 1.49 | %
Volatility factor | 30.00 | % |  | 29.00 | %
Expected option life | 6 years |  |  | 6 years |
Restricted Stock Units. In March 2017, our Organization and Compensation Committee ("Compensation Committee") of the Board of Directors approved a Long Term Incentive Program ("LTIP Program"). Under the LTIP Program, we granted restricted stock units to certain senior executives. These restricted stock units will vest and share awards will be issued at no cost, subject to our achievement of specified return on invested capital performance goals over a three-year period that have been established by the Compensation Committee for the performance period and the employee's continued employment through the share award date. Restricted stock units are granted at a target number; based on our performance, the number of restricted stock units that vest can be adjusted downward to zero and upward to a maximum of 200%. We granted 124,780 restricted stock units in the three-month period ended March 31, 2017, with a grant date fair value of approximately $34 per share. No restricted stock units were forfeited in the three-month period ended March 31, 2017.

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- Definition The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 40 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=65895303&loc=d3e17540-113929 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=68057994&loc=d3e25284-112666 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB Topic 14) -URI http://asc.fasb.org/extlink&oid=27013229&loc=d3e301413-122809 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5444-113901 + Details
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