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Stock-Based Compensation | 3 Months Ended
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Mar. 31, 2021
Share-based Payment Arrangement [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, 2021, outstanding stock-based incentives were in the form of long-term stock awards, stock options, restricted stock units, performance restricted stock units, and phantom stock awards. Pre-tax compensation expense included in income from continuing operations for these stock-based incentives was as follows, in millions:
|  |  | Three Months Ended March 31,
|  |  |  |  | 2021 |  | 2020
Long-term stock awards |  |  |  |  | $ | 3 |  |  | $ | 4 |
Stock options |  |  |  |  | 4 |  |  | 3 |
Restricted stock units |  |  |  |  | 19 |  |  | 8 |
Performance restricted stock units |  |  |  |  | 2 |  |  | 1 |
Phantom stock awards |  |  |  |  | 2 |  |  | — |
Total |  |  |  |  | $ | 30 |  |  | $ | 16 |
Long-Term Stock Awards. Prior to the amendment of our 2014 Long Term Stock Incentive Plan in December 2019, we granted long-term stock awards to our key employees and non-employee Directors. We did not grant shares of long-term stock awards in the three-month periods ended March 31, 2021 and 2020. Our long-term stock award activity was as follows, shares in millions:
| Three Months Ended March 31,
| 2021 |  | 2020
Unvested stock award shares at January 1 | 1 |  |  | 2 |
Weighted average grant date fair value | $ | 36 |  |  | $ | 34 |
Stock award shares vested | — |  |  | 1 |
Weighted average grant date fair value | $ | 34 |  |  | $ | 32 |
Stock award shares forfeited | — |  |  | — |
Weighted average grant date fair value | $ | 37 |  |  | $ | 35 |
Unvested stock award shares at March 31 | 1 |  |  | 1 |
Weighted average grant date fair value | $ | 37 |  |  | $ | 36 |
At March 31, 2021 and 2020, there was $18 million and $32 million, respectively, of total unrecognized compensation expense related to unvested stock awards; such awards had a weighted average remaining vesting period of two years and three years at March 31, 2021 and 2020, respectively. The total market value (at the vesting date) of stock award shares which vested was $26 million and $29 million during the three-month periods ended March 31, 2021 and 2020, respectively. J. STOCK-BASED COMPENSATION (Continued) Stock Options. Stock options are granted to certain key employees. We granted 331,970 shares of stock options in the three-month period ended March 31, 2021 with a grant date weighted average exercise price of approximately $56 per share. Our stock option activity was as follows, shares in millions:
|  | Three Months Ended March 31,
|  | 2021 |  |  | 2020
Option shares outstanding, January 1 |  | 2 |  |  |  | 3 |
Weighted average exercise price | $ | 33 |  |  | $ | 27 |
Option shares granted |  | 1 |  |  |  | 1 |
Weighted average exercise price | $ | 56 |  |  | $ | 48 |
Option shares exercised |  | — |  |  |  | 1 |
Aggregate intrinsic value on date of exercise (A) | $ | — |  | $ | 22 million
Weighted average exercise price | $ | — |  |  | $ | 17 |
Option shares forfeited |  | — |  |  |  | — |
Weighted average exercise price | $ | 11 |  |  | $ | 42 |
Option shares outstanding, March 31 |  | 3 |  |  |  | 3 |
Weighted average exercise price | $ | 36 |  |  | $ | 32 |
Weighted average remaining option term (in years) |  | 7 |  |  | 7
Option shares vested and expected to vest, March 31 |  | 3 |  |  |  | 3 |
Weighted average exercise price | $ | 36 |  |  | $ | 32 |
Aggregate intrinsic value (A) | $ | 65 million |  | $ | 14 million
Weighted average remaining option term (in years) |  | 6 |  |  | 7
Option shares exercisable (vested), March 31 |  | 2 |  |  |  | 1 |
Weighted average exercise price | $ | 30 |  |  | $ | 26 |
Aggregate intrinsic value (A) | $ | 51 million |  | $ | 13 million
Weighted average remaining option term (in years) |  | 5 |  |  | 6
(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, 2021 and 2020, there was $6 million and $9 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 two years and three years at March 31, 2021 and 2020, respectively. J. 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,
| 2021 |  | 2020
Weighted average grant date fair value | $ | 13.61 |  |  | $ | 10.67 |
Risk-free interest rate | 0.75 | % |  | 1.53 | %
Dividend yield | 1.67 | % |  | 1.14 | %
Volatility factor | 30.00 | % |  | 24.00 | %
Expected option life | 6 years |  | 6 years
Restricted Stock Units. Restricted stock units are granted to our key employees and non-employee Directors. These grants did not cause net share dilution due to our practice of repurchasing and retiring an equal number of shares in the open market. We granted 635,840 restricted stock units in the three-month period ended March 31, 2021 with a weighted average grant date fair value of $56 per share. In the three-month period ended March 31, 2021, 126,295 shares were issued and 8,789 restricted stock units were forfeited. During the three-month period ended March 31, 2020, we granted 394,970 restricted stock units with a grant date fair value of approximately $47 per share and 4,760 restricted stock units were forfeited. At March 31, 2021 and 2020, there was $23 million and $10 million, respectively, of unrecognized compensation expense related to unvested restricted stock units; such units had a weighted average remaining vesting period of two years and three years at March 31, 2021 and 2020, respectively. The total market value (at the vesting date) of restricted stock units which vested was $7 million during the three-month period ended March 31, 2021. Performance Restricted Stock Units. Under our Long Term Incentive Program, we grant performance restricted stock units to certain senior executives. These performance restricted stock units will vest and share awards will be issued at no cost to the employees, subject to our achievement of specified performance metrics established by our Compensation Committee over a three-year performance period and the recipient's continued employment through the share award date. During the three-month period ended March 31, 2021, we granted 85,360 performance restricted stock units with a grant date fair value of approximately $53 per share and 104,757 shares were issued. No performance restricted stock units were forfeited during the three-month period ended March 31, 2021. During the three-month period ended March 31, 2020, we granted 133,390 performance restricted stock units with a grant date fair value of approximately $34 per share and 151,724 shares were issued.

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