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STOCK-BASED COMPENSATION | 12 Months Ended
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Dec. 31, 2021
Share-based Payment Arrangement [Abstract] |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION Our 2014 Long Term Stock Incentive Plan (the "2014 Plan") provides for the issuance of stock-based incentives in various forms to our employees and non-employee Directors. At December 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:
| Year Ended December 31,
| 2021 |  | 2020 |  | 2019
Long-term stock awards | $ | 10 |  |  | $ | 14 |  |  | $ | 20 |
Stock options | 7 |  |  | 7 |  |  | 4 |
Restricted stock units | 28 |  |  | 13 |  |  | — |
Performance restricted stock units | 10 |  |  | 5 |  |  | 3 |
Phantom stock awards | 6 |  |  | 4 |  |  | 4 |
Total | $ | 61 |  |  | $ | 43 |  |  | $ | 31 |
At December 31, 2021, 12.9 million shares of our common stock were available under the 2014 Plan for the granting of long-term stock awards, stock options, restricted stock units and performance restricted stock units. Long-Term Stock Awards. Prior to the amendment of our 2014 Plan in December 2019, we granted long-term stock awards 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 did not grant shares of long-term stock awards during 2021. Our long-term stock award activity was as follows, shares in millions:
| Year Ended December 31,
| 2021 |  | 2020 |  | 2019
Unvested stock award shares at January 1 | 1 |  |  | 2 |  |  | 2 |
Weighted average grant date fair value | $ | 36 |  |  | $ | 34 |  |  | $ | 30 |
Stock award shares granted | — |  |  | — |  |  | 1 |
Weighted average grant date fair value | $ | — |  |  | $ | — |  |  | $ | 36 |
Stock award shares vested | — |  |  | 1 |  |  | 1 |
Weighted average grant date fair value | $ | 34 |  |  | $ | 32 |  |  | $ | 25 |
Stock award shares forfeited | — |  |  | — |  |  | — |
Weighted average grant date fair value | $ | 36 |  |  | $ | 35 |  |  | $ | 35 |
Unvested stock award shares at December 31 | 1 |  |  | 1 |  |  | 2 |
Weighted average grant date fair value | $ | 37 |  |  | $ | 36 |  |  | $ | 34 |
At December 31, 2021, 2020 and 2019, there was $10 million, $21 million and $41 million, respectively, of total unrecognized compensation expense related to unvested stock awards; such awards had a weighted average remaining vesting period of two years at both December 31, 2021 and 2020, and three years at December 31, 2019. M. STOCK-BASED COMPENSATION (Continued) The total market value (at the vesting date) of stock award shares which vested was $28 million during 2021 and $31 million during both 2020 and 2019. 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 and expire no later than 10 years after the grant date. We granted 331,970 shares of stock options during 2021 with a grant date weighted-average exercise price of approximately $56 per share. Our stock option activity was as follows, shares in millions:
| Year Ended December 31,
| 2021 |  | 2020 |  | 2019
Option shares outstanding, January 1 | 2 |  |  | 3 |  | 4
Weighted average exercise price | $ | 33 |  |  | $ | 27 |  | $ | 21
Option shares granted | 1 |  |  | 1 |  | 1
Weighted average exercise price | $ | 56 |  |  | $ | 48 |  | $ | 36
Option shares exercised | — |  | 2 |  | 2
Aggregate intrinsic value on date of exercise (A) | $ | 5 million |  | $ | 29 million |  | $ | 33 million
Weighted average exercise price | $ | 25 |  | $ | 17 |  | $ | 13
Option shares forfeited | — |  | — |  | —
Weighted average exercise price | $ | 11 |  |  | $ | 40 |  |  | $ | 34 |
Option shares outstanding, December 31 | 3 |  | 2 |  | 3
Weighted average exercise price | $ | 37 |  | $ | 33 |  | $ | 27
Weighted average remaining option term (in years) | 6 |  | 6 |  | 6
Option shares vested and expected to vest, December 31 | 3 |  | 2 |  | 3
Weighted average exercise price | $ | 36 |  | $ | 33 |  | $ | 27
Aggregate intrinsic value (A) | $ | 89 million |  | $ | 51 million |  | $ | 63 million
Weighted average remaining option term (in years) | 6 |  | 6 |  | 6
Option shares exercisable (vested), December 31 | 2 |  | 1 |  | 2
Weighted average exercise price | $ | 31 |  | $ | 28 |  | $ | 21
Aggregate intrinsic value (A) | $ | 63 million |  | $ | 35 million |  | $ | 47 million
Weighted average remaining option term (in years) | 5 |  | 5 |  | 4
______________________________ (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 December 31, 2021, 2020 and 2019, there was $4 million, $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 at both December 31, 2021 and 2020, and three years at December 31, 2019. M. STOCK-BASED COMPENSATION (Continued) 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:
| Year Ended December 31,
| 2021 |  | 2020 |  | 2019
Weighted average grant date fair value | $ | 13.61 |  |  | $ | 10.67 |  |  | $ | 8.81 |
Risk-free interest rate | 0.75 | % |  | 1.53 | % |  | 2.57 | %
Dividend yield | 1.67 | % |  | 1.14 | % |  | 1.35 | %
Volatility factor | 30.00 | % |  | 24.00 | % |  | 25.00 | %
Expected option life | 6 years |  | 6 years |  | 6 years
The following table summarizes information for stock option shares outstanding and exercisable, shares in millions:
At December 31, 2021
| Option Shares Outstanding |  | Option Shares Exercisable
| Range of Prices |  | Number of Shares |  | Weighted Average Remaining Option Term |  | Weighted Average Exercise Price |  | Number of Shares |  | Weighted Average Exercise Price
$ | 17 - 21 |  | — |  | 2 |  | $20 |  | — |  | $20
$ | 22 - 26 |  | 1 |  | 4 |  | $24 |  | 1 |  | $24
$ | 27 - 36 |  | 1 |  | 6 |  | $35 |  | 1 |  | $34
$ | 37 - 57 |  | 1 |  | 8 |  | $49 |  | — |  | $44
$ | 17 - 57 |  | 3 |  | 6 |  | $37 |  | 2 |  | $31
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 669,980 restricted stock units in the year ended December 31, 2021 with a weighted average grant date fair value of $57 per share. In the year ended December 31, 2021, 141,461 shares were issued and 29,125 restricted stock units were forfeited. During the year ended December 31, 2020, we granted 445,670 restricted stock units with a weighted average grant date fair value of $47 per share and 11,100 restricted stock units were forfeited. At December 31, 2021, and 2020 there was $15 million and $7 million, respectively of unrecognized compensation expense related to unvested restricted stock units; such units had a weighted average remaining vesting period of two years at both December 31, 2021 and 2020. The total market value (at the vesting date) of restricted stock units which vested was $8 million during the year ended December 31, 2021. M. STOCK-BASED COMPENSATION (Concluded) 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 return on invested capital performance goals, and beginning with the 2020 grant, an additional earning per share metric over a three-year period that have been established by our Compensation Committee for the performance period. To receive the award, the recipient must be employed through the share award date. Performance restricted stock units are granted at a target number; based on our performance, the number of performance restricted stock units that vest can be adjusted downward to zero and upward to a maximum of 200 percent of the target number. During 2021, we granted 85,360 performance restricted stock units with a grant date fair value of approximately $53 per share, 104,757 performance restricted stock units were issued. No performance restricted stock units were forfeited. At December 31, 2021, there were 186,304 shares vested, but unissued. During 2020, we granted 133,390 performance restricted stock units with a grant date fair value of approximately $34 per share, 151,724 performance restricted stock units were issued and 10,680 performance restricted stock units were forfeited. During 2019, we granted 126,680 performance restricted stock units with a grant date fair value of approximately $39 per share, and 15,600 performance restricted stock units were forfeited. Phantom Stock Awards. Certain non-U.S. employees are granted phantom stock awards. We recognized expense of $6 million in 2021, and expense of $4 million in both 2020 and 2019 related to phantom stock awards. In 2021, 2020 and 2019, we granted 82,160, 82,630, and 79,500 shares, respectively, of phantom stock awards with an aggregate fair value of $5 million in 2021 and $3 million in both 2020 and 2019, and paid cash of $3 million in 2021, 2020 and 2019, to settle phantom stock awards. Information related to phantom stock awards was as follows, in millions:
| At December 31, |  |
| 2021 |  | 2020 |  |  |  |
Accrued compensation cost liability | $ | 8 |  |  | $ | 6 |  |  |  |  |
Unrecognized compensation cost | $ | 3 |  |  | $ | 4 |  |  |  |  |
Equivalent common shares | — |  |  | — |  |  |  |  |

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