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Stock-based and Other Incentive Compensation (Tables) | 12 Months Ended
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Dec. 31, 2024
Share-Based Payment Arrangement [Abstract] |
Summary of Compensation Expense | Stock-based compensation expense (benefit) for the years ended December 31 was as follows:
(in millions) | 2024 |  | 2023 |  | 2022
Cost of revenue | $ | 4 |  |  | $ | 1 |  |  | $ | (1) |
Selling, general and administrative expenses | 29 |  |  | 14 |  |  | (16) |
Stock-based compensation expense (benefit) | 33 |  |  | 15 |  |  | (17) |
Income tax (benefit) expense | (4) |  |  | (3) |  |  | 4 |
Stock-based compensation expense (benefit), net | $ | 29 |  |  | $ | 12 |  |  | $ | (13) |
Stock-based compensation expense (benefit) by type of award |  |  |  |  |
Restricted stock units | $ | 10 |  |  | $ | — |  |  | $ | — |
Performance share units | 7 |  |  | — |  |  | — |
Stock options | 4 |  |  | — |  |  | — |
Stock-settled stock appreciation rights | 2 |  |  | — |  |  | — |
Cash-settled awards | 10 |  |  | 15 |  |  | (17) |
Stock-based compensation expense (benefit) | $ | 33 |  |  | $ | 15 |  |  | $ | (17) |
Compensation expense related to Performance Cash awards for the years ended December 31 was as follows:
(in millions) | 2024 |  | 2023 |  | 2022
Cost of revenue | $ | 3 |  |  | $ | 2 |  |  | $ | 2 |
Selling, general and administrative expenses | 18 |  |  | 14 |  |  | 14 |
Performance Cash compensation expense | 21 |  |  | 16 |  |  | 16 |
Income tax benefit | (4) |  |  | (4) |  |  | (4) |
Performance Cash compensation expense, net | $ | 17 |  |  | $ | 12 |  |  | $ | 12 |
Summary of Restricted Stock Units Activity | The following table summarizes the activity related to the Company’s RSUs during the year ended December 31, 2024:
| Number of RSUs |  | Weighted Average Grant Date Fair Value
Outstanding as of December 31, 2023 | — |  |  | $ | — |
Granted | 847,223 |  |  | 35.65 |
Forfeited | (45,012) |  |  | 34.85 |
Outstanding as of December 31, 2024 | 802,211 |  |  | $ | 35.70 |
Summary of Performance Share Units Activity | The following table summarizes the activity related to the Company’s PSUs during the year ended December 31, 2024:
| Number of PSUs |  | Weighted Average Grant Date Fair Value
Outstanding as of December 31, 2023 | — |  |  | $ | — |
Granted | 385,332 |  |  | 34.85 |
Forfeited | (14,566) |  |  | 34.85 |
Outstanding as of December 31, 2024 | 370,766 |  |  | $ | 34.85 |
Summary of Activity Related to Stock Options | The following table summarizes the activity related to the Company’s stock options during the year ended December 31, 2024:
| Number of Stock Options |  | Weighted Average Exercise Price |  | Weighted Average Remaining Term |  | Aggregate Intrinsic Value (in millions)
Outstanding as of December 31, 2023 | — |  |  | $ | — |  |  |  |  |
Granted | 2,074,299 |  |  | 28.00 |  |  |  |  |
Forfeited | (79,719) |  |  | 28.00 |  |  |  |  |
Outstanding as of December 31, 2024 | 1,994,580 |  |  | $ | 28.00 |  |  | 9.3 years |  | $ | 44 |
Exercisable as of December 31, 2024 | — |  |  |  |  |  |  |
Summary of Fair Value Assumptions | The following table summarizes the assumptions used in the Black-Scholes-Merton option-pricing model that was used to estimate the fair value of the stock options at the grant date:
| April 12, 2024
Expected dividend yield | 1.79%
Risk-free interest rate | 4.48%
Weighted average volatility | 24.50%
Expected life (in years) | 6.50
The following table summarizes the assumptions used in the Black-Scholes-Merton option-pricing models that were used to estimate the fair value of CSARs at the conversion date and as of December 31, 2023 and 2022:
| April 16, 2024 |  | December 31, 2023 |  | December 31, 2022
Expected dividend yield | 1.44% |  | 1.70% |  | —%
Risk-free interest rate | 4.78% - 5.41% |  | 3.99% - 5.60% |  | 4.12% - 4.75%
Weighted average volatility | 22.50% |  | 22.24% |  | 29.87%
Expected life (in years) | 0.11 - 2.96 |  | 0.06 - 3.25 |  | 0.06 - 3.25
Summary of SAR Activity | The following table summarizes the activity related to the Company’s CSARs during the year ended December 31, 2024:
| Number of CSAR Awards |  | Weighted Average Exercise Price |  | Weighted Average Remaining Term |  | Aggregate Intrinsic Value (in millions)
Outstanding as of December 31, 2023 | 3,452,120 |  |  | $ | 18.77 |  |  | 1.72 years |  | $ | 37 |
CSARs converted to SSARs | (1,978,761) |  |  | 21.12 |  |  |  |  |
Exercised | (891,866) |  |  | 7.69 |  |  |  |  |
Cancelled | (470,992) |  |  | 30.06 |  |  |  |  |
Forfeited | (19,815) |  |  | 29.10 |  |  |  |  |
Outstanding as of December 31, 2024 | 90,686 |  |  | $ | 15.65 |  |  | 1.05 years |  | $ | 3 |
Exercisable as of December 31, 2024 | 76,400 |  |  | $ | 13.15 |  |  | 0.71 years |  | $ | 3 |
The following table summarizes the activity related to the Company’s SSARs during the year ended December 31, 2024:
| Number of SSAR Awards |  | Weighted Average Exercise Price |  | Weighted Average Remaining Term |  | Aggregate Intrinsic Value (in millions)
Outstanding as of December 31, 2023 | — |  |  | $ | — |  |  |  |  |
SSARs converted from CSARs | 1,978,761 |  |  | 21.12 |  |  |  |  |
Exercised | (328,476) |  |  | 12.84 |  |  |  |  |
Forfeited | (52,146) |  |  | 29.13 |  |  |  |  |
Outstanding as of December 31, 2024 | 1,598,139 |  |  | $ | 22.55 |  |  | 1.96 years |  | $ | 44 |
Exercisable as of December 31, 2024 | 660,165 |  |  | $ | 13.26 |  |  | 0.75 years |  | $ | 24 |

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