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Stockholders' Equity
 12 Months Ended
Dec. 31, 2022
Equity [Abstract]  
Stockholders' Equity Stockholders' Equity
Stock Purchase Programs
In November 2022, our board of directors authorized the purchase of up to $500 million, in the aggregate, of our common stock. This new program supersedes the stock purchase program previously approved by our board of directors in September 2021, as described below. This new program will be funded with cash on hand and extends through December 31, 2023. Under this program, pursuant to a Rule 10b5-1 trading plan, we purchased approximately 590,000 shares for $200 million in the fourth quarter of 2022 (average cost of $339.06 per share). No shares have been purchased in 2023.
In September 2021, our board of directors authorized the purchase of up to $500 million, in the aggregate, of our common stock. This program was funded with cash on hand. Under this program, pursuant to a Rule 10b5-1 trading plan, we purchased approximately 658,000 shares for $200 million in the second quarter of 2022 (average cost of $304.13 per share).
Share-Based Compensation
In connection with our employee stock plans, approximately 755,000 shares and 429,000 shares of common stock were issued, net of shares used to settle employees’ income tax obligations, during the years ended December 31, 2022, and 2021, respectively. Total share-based compensation expense is reported in “General and administrative expenses” in the accompanying consolidated statements of income, and summarized below.
Year Ended December 31,
202220212020
(In millions)
Pretax
Charges		Net-of-Tax
Amount		Pretax
Charges		Net-of-Tax
Amount		Pretax
Charges		Net-of-Tax
Amount
RSAs and PSUs (defined below)$97 $90 $66 $62 $47 $44 
Employee stock purchase plan and stock options
6 6 6 6 10 9 
Total$103 $96 $72 $68 $57 $53 
Equity Incentive Plan
At December 31, 2022, we had employee equity incentives outstanding under our 2019 Equity Incentive Plan (the “2019 EIP”). The 2019 EIP provides for awards, in the form of restricted stock awards (“RSAs”), performance units (“PSUs”), stock options, and other stock– or cash–based awards, to eligible persons who perform services for us. The 2019 EIP provides for the issuance of up to 2.9 million shares of our common stock.
Stock-based awards. RSAs and PSUs are granted with a fair value equal to the market price of our common stock on the date of grant, and generally vest in equal annual installments over periods up to four years from the date of grant. PSUs vest in their entirety at the end of three-year performance periods, if their performance conditions are met. We generally recognize expense for RSAs and PSUs on a straight-line basis. Activity for stock-based awards in the year ended December 31, 2022, is summarized below.
RSAsWeighted
Average
Grant Date
Fair Value		PSUsWeighted
Average
Grant Date
Fair Value
Unvested balance, December 31, 2021
539,117 $169.39 275,050 $129.99 
Granted237,590 312.27 271,270 214.94 
Vested(224,345)156.21 (219,674)137.54 
Forfeited(41,257)224.96 (13,816)249.09 
Unvested balance, December 31, 2022
511,105 $237.10 312,830 $193.09 
As of December 31, 2022, total unrecognized compensation expense related to unvested RSAs and PSUs was $74 million, and $31 million, respectively, which we expect to recognize over a remaining weighted-average period of 2.0 years, and 0.7 years, respectively. This unrecognized compensation cost assumes an estimated forfeiture rate of 9.2% for non-executive employees as of December 31, 2022, based on actual forfeitures over the last 4 years.
The total grant date fair value of awards granted and vested is presented in the following table.
Year Ended December 31,
202220212020
(In millions)
Granted:
RSAs$74 $65 $44 
PSUs43 — 23 
Total granted$117 $65 $67 
Vested:
RSAs$70 $53 $22 
PSUs69 71 1 
Total vested$139 $124 $23 
Stock Options. Stock option awards generally have an exercise price equal to the fair market value of our common stock on the date of grant, vest in equal annual installments over periods up to four years from the date of grant, and have a maximum term of ten years from the date of grant. Stock option activity for the year ended December 31, 2022, is summarized below.
Number of SharesWeighted Average Exercise PriceAggregate Intrinsic ValueWeighted Average Remaining Contractual term
(Per share)(In millions)(Years)
Stock options outstanding as of December 31, 2021
395,000 $65.59 
Exercised(390,000)66.01 
Stock options outstanding, vested, and exercisable as of December 31, 2022
5,000 33.02 $1 0.2
No stock options were granted in 2022, 2021, or 2020, and no stock options were exercised in 2020. As of December 31, 2022, there was no unrecognized compensation expense related to unvested stock options.
Employee Stock Purchase Plans (“ESPP”)
Under our ESPP, eligible employees may purchase common shares at 85% of the lower of the fair market value of our common stock on either the first or last trading day of each six-month offering period. Each participant is limited to a maximum purchase of $25,000 (as measured by the fair value of the stock acquired) per year through payroll deductions. We estimate the fair value of the stock issued using a standard option pricing model. For the years ended December 31, 2022, 2021, and 2020, the inputs to this model were as follows: risk-free interest rates of approximately 0.1% to 2.5%; expected volatility of approximately 29% to 54%, dividend yields of 0%, and an average expected life of 0.5 years.