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Stock-Based Compensation
 6 Months Ended
Jun. 30, 2022
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 June 30, 2022, outstanding stock-based incentives were in the form of restricted stock units, performance restricted stock units, stock options, long-term stock awards and phantom stock awards.

Pre-tax compensation expense for these stock-based incentives was as follows, in millions: 
Three Months Ended June 30,Six Months Ended June 30,
 2022202120222021
Restricted stock units$6 $4 $25 $23 
Performance restricted stock units3 4 4 6 
Stock options1 1 6 5 
Long-term stock awards2 3 4 6 
Phantom stock awards— — — 2 
Total$12 $12 $39 $42 
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 605,100 restricted stock units in the six months ended June 30, 2022 with a weighted average grant date fair value of $59 per share.
J. STOCK-BASED COMPENSATION, Continued
Our restricted stock unit activity was as follows, units in millions: 
Six Months Ended June 30,
 20222021
Unvested restricted stock units at January 11 — 
Weighted average grant date fair value$54 $47 
Restricted stock units granted1 1 
Weighted average grant date fair value$59 $57 
Restricted stock units vested1 — 
Weighted average grant date fair value$53 $47 
Restricted stock units forfeited— — 
Weighted average grant date fair value$56 $54 
Unvested restricted stock units at June 301 1 
Weighted average grant date fair value$57 $54 

At June 30, 2022 and 2021, there was $25 million and $20 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 June 30, 2022 and 2021.

The total market value (at the vesting date) of restricted stock units which vested was $19 million and $7 million during the six months ended June 30, 2022 and 2021, respectively.

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 six months ended June 30, 2022, we granted 91,820 performance restricted stock units with a grant date fair value of approximately $55 per share and 167,903 shares were issued. No performance restricted stock units were forfeited during the six months ended June 30, 2022. During the six months ended June 30, 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 six months ended June 30, 2021.
Stock Options. Stock options are granted to certain key employees.
We granted 337,790 shares of stock options in the six months ended June 30, 2022 with a grant date weighted average exercise price of approximately $59 per share.
J. STOCK-BASED COMPENSATION, Continued

Our stock option activity was as follows, shares in millions: 
Six Months Ended June 30,
 20222021
Option shares outstanding, January 13 2 
Weighted average exercise price$37 $33 
Option shares granted— 1 
Weighted average exercise price$59 $56 
Option shares exercised— — 
Aggregate intrinsic value on date of exercise (A)
$— $
1 million
Weighted average exercise price$38 $20 
Option shares forfeited— — 
Weighted average exercise price$37 $11 
Option shares outstanding, June 303 3 
Weighted average exercise price$39 $36 
Weighted average remaining option term (in years)66
Option shares vested and expected to vest, June 303 3 
Weighted average exercise price$39 $36 
Aggregate intrinsic value (A)
$
39 million
$
62 million
Weighted average remaining option term (in years)66
Option shares exercisable (vested), June 302 2 
Weighted average exercise price$34 $30 
Aggregate intrinsic value (A)
$
35 million
$
49 million
Weighted average remaining option term (in years)55
(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 June 30, 2022 and 2021, there was $3 million and $5 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 June 30, 2022 and 2021.
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: 
Six Months Ended June 30,
 20222021
Weighted average grant date fair value$14.66 $13.61 
Risk-free interest rate1.90 %0.75 %
Dividend yield1.89 %1.67 %
Volatility factor29.00 %30.00 %
Expected option life6 years6 years
    
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 six months ended June 30, 2022 and 2021.
    
Our long-term stock award activity was as follows, shares in millions: 
Six Months Ended June 30,
 20222021
Unvested stock award shares at January 11 1 
Weighted average grant date fair value$37 $36 
Stock award shares vested1 — 
Weighted average grant date fair value$37 $34 
Stock award shares forfeited— — 
Weighted average grant date fair value$37 $37 
Unvested stock award shares at June 30— 1 
Weighted average grant date fair value$38 $37 

At June 30, 2022 and 2021, there was $6 million and $15 million, respectively, of total unrecognized compensation expense related to unvested stock awards; such awards had a weighted average remaining vesting period of one year and two years at June 30, 2022 and 2021, respectively.

The total market value (at the vesting date) of stock award shares which vested was $21 million and $27 million during the six months ended June 30, 2022 and 2021, respectively.