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Stock-Based Compensation | 3 Months Ended
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Mar. 31, 2018
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, 2018, 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 for these stock-based incentives were as follows, in millions:
| Three Months Ended March 31,
| 2018 |  | 2017
Long-term stock awards | $ | 5 |  |  | $ | 6 |
Stock options | 1 |  |  | 1 |
Restricted stock units | 1 |  |  | — |
Phantom stock awards and stock appreciation rights | — |  |  | 2 |
Total | $ | 7 |  |  | $ | 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 585,220 shares of long-term stock awards in the three-month period ended March 31, 2018. I. STOCK-BASED COMPENSATION (Continued) Our long-term stock award activity was as follows, shares in millions:
| Three Months Ended March 31,
| 2018 |  | 2017
Unvested stock award shares at January 1 | 3 |  |  | 4 |
Weighted average grant date fair value | $ | 24 |  |  | $ | 20 |
Stock award shares granted | 1 |  |  | 1 |
Weighted average grant date fair value | $ | 42 |  |  | $ | 34 |
Stock award shares vested | 1 |  |  | 2 |
Weighted average grant date fair value | $ | 21 |  |  | $ | 18 |
Stock award shares forfeited | — |  |  | — |
Weighted average grant date fair value | $ | 30 |  |  | $ | 22 |
Unvested stock award shares at March 31 | 3 |  |  | 3 |
Weighted average grant date fair value | $ | 30 |  |  | $ | 23 |
At March 31, 2018 and 2017, there was $64 million and $63 million, respectively, of total unrecognized compensation expense related to unvested stock awards; such awards had a weighted average remaining vesting period of four years at both March 31, 2018 and 2017. The total market value (at the vesting date) of stock award shares which vested during the three-month periods ended March 31, 2018 and 2017 was $52 million and $39 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 385,220 shares of stock options in the three-month period ended March 31, 2018 with a grant date weighted-average exercise price of approximately $42 per share. In the three-month period ended March 31, 2018, no stock option shares were forfeited (including options that expired unexercised). I. STOCK-BASED COMPENSATION (Continued) Our stock option activity was as follows, shares in millions:
|  | Three Months Ended March 31,
|  | 2018 |  |  | 2017
Option shares outstanding, January 1 |  | 5 |  |  |  | 7 |
Weighted average exercise price | $ | 16 |  |  | $ | 15 |
Option shares granted |  | — |  |  |  | — |
Weighted average exercise price | $ | 42 |  |  | $ | 34 |
Option shares exercised |  | — |  |  |  | — |
Aggregate intrinsic value on date of exercise (A) | $ | 33 million |  |  | $ | 3 million |
Weighted average exercise price | $ | 11 |  |  | $ | 23 |
Option shares forfeited |  | — |  |  |  | — |
Weighted average exercise price | $ | — |  |  | $ | — |
Option shares outstanding, March 31 |  | 5 |  |  |  | 7 |
Weighted average exercise price | $ | 19 |  |  | $ | 16 |
Weighted average remaining option term (in years) |  | 5 |  |  |  | 4 |
Option shares vested and expected to vest, March 31 |  | 5 |  |  |  | 7 |
Weighted average exercise price | $ | 19 |  |  | $ | 16 |
Aggregate intrinsic value (A) | $ | 98 million |  |  | $ | 131 million |
Weighted average remaining option term (in years) |  | 5 |  |  |  | 4 |
Option shares exercisable (vested), March 31 |  | 3 |  |  |  | 6 |
Weighted average exercise price | $ | 15 |  |  | $ | 13 |
Aggregate intrinsic value (A) | $ | 88 million |  |  | $ | 120 million |
Weighted average remaining option term (in years) |  | 4 |  |  |  | 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, 2018 and 2017, there was $11 million and $10 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, 2018 and 2017. I. 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,
| 2018 |  | 2017
Weighted average grant date fair value | $ | 12.52 |  |  | $ | 9.68 |
Risk-free interest rate | 2.71 | % |  | 2.16 | %
Dividend yield | 1.00 | % |  | 1.19 | %
Volatility factor | 29.00 | % |  | 30.00 | %
Expected option life | 6 years |  |  | 6 years |
Restricted Stock Units. Under the Long Term Incentive Program, we granted restricted stock units to certain senior executives. These restricted stock units vest and share awards are issued at no cost to the employees, subject to our achievement of specified return on invested capital performance goals over a three-year period that have been established by our Organization and Compensation Committee for the performance period and the recipient's continued employment through the share award date. We granted 113,260 restricted stock units in the three-month period ended March 31, 2018, with a grant date fair value of approximately $42 per share and 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 periods ended March 31, 2018 and 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 -URI http://asc.fasb.org/topic&trid=2228938 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -URI http://asc.fasb.org/subtopic&trid=2208855 + Details
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