On October 29, 2018, the Board adopted, and Honeywell, as the Company’s sole shareholder, approved, the 2018 Stock Incentive Plan of Resideo Technologies, Inc. and its Affiliates and the 2018 Stock Incentive Plan for Non-Employee Directors of Resideo Technologies, Inc. as may be amended from time to time (together, the “Stock Incentive Plan”). On or about December 21, 2018, the Board adopted the Amended and Restated 2018 Stock Incentive Plan of Resideo Technologies, Inc. and its Affiliates. The Stock Incentive Plan provides for the grant of stock options, stock appreciation rights, restricted stock units, restricted stock, other stock-based awards and cash-based awards. The maximum aggregate number of shares of the Company’s common stock that may be issued under awards granted under the Stock Incentive Plan is 16 million. As of December 31, 2020, 7,664,452 shares of the Company’s common stock were available to be granted under the Stock Incentive Plan.

Restricted stock unit (“RSU”) awards entitle the holder to receive one share of common stock for each unit when the units vest. RSUs are issued to certain key employees and to non-employee directors. RSUs typically become fully vested over periods ranging from one to seven years and are payable in Resideo common stock upon vesting.

Since the Spin-Off on October 29, 2018 through December 31, 2018, the Company granted the following awards:

The following table summarizes RSU activity related to the Stock Incentive Plan during the years ended December 31, 2020 and 2019:

	RSUs
	Number of Restricted Stock Units			Weighted Average Grant Date Fair Value Per Share
Non-vested as of January 1, 2019		3,338,184		$	24.05
Granted		1,607,204			21.83
Vested		(509,366	)		23.78
Forfeited		(641,491	)		24.07
Non-vested as of December 31, 2019		3,794,531			23.14
Granted		3,057,775			9.45
Vested		(921,060	)		21.07
Forfeited		(731,482	)		18.57
Non-vested as of December 31, 2020		5,199,764		$	16.10

As of December 31, 2020, there was approximately $22 million of total unrecognized compensation cost related to non-vested RSUs granted under the Stock Incentive Plan, which is expected to be recognized over a weighted-average period of 1.6 years. The fair value of RSUs that vested during the year ended December 31, 2020 is $9 million. Included in the outstanding RSUs are 867,732 performance-based RSU's as of December 31, 2020 and the related expense was $2 million during the year ended December 31, 2020.

Stock option awards entitle the holder to purchase shares of common stock at a specific price when the options vest. Stock options typically vest over three years from the date of grant and expire seven years from the grant date.

The fair value of stock options was calculated using the following assumptions in the Black-Scholes model:

The aggregate intrinsic value disclosed below represents the total intrinsic value (the difference between the fair market value of the Company’s common stock as of December 31, 2020, and the exercise price, multiplied by the number of in-the-money service-based stock options) that would have been received by the option holders had all option holders exercised their options on December 31, 2020. This amount is subject to change based on changes to the fair market value of the Company’s common stock.

The following table summarizes stock option activity related to the Stock Incentive Plan during the year ended December 31, 2020:

	Stock Options
	Number of Stock Options			Weighted Average Exercise Price		Weighted Average Contractual Life (years)		Aggregate Intrinsic Value
Stock Options outstanding as of January 1, 2019		-		$	-		-	$	-
Granted		1,155,566			24.37
Forfeited		(165,312	)		24.39
Stock Options outstanding as of December 31, 2019		990,254			24.36		6.0		-
Granted		1,083,665			9.17
Forfeited		(348,696	)		18.39
Stock Options outstanding as of December 31, 2020		1,725,223			15.98		4.9		12
Vested and expected to vest at December 31, 2020		1,446,606			16.97		4.7		9
Exercisable at December 31, 2020		442,013		$	23.13		2.3	$	-

Stock options granted during the year ended December 31, 2020 had a weighted average grant date fair value per share of $2.61. As of December 31, 2020, there was approximately $1 million of total unrecognized compensation cost related to non-vested stock options granted under the Stock Incentive Plan, which is expected to be recognized over a weighted-average period of 1.5 years. No stock options were exercised during the year ended December 31, 2020.

The following table summarizes stock-based compensation expense and the related tax benefits under the Company’s plans:

	Years Ended December 31,
	2020		2019			2018
Stock-based compensation expense before income taxes	$	29	$	25		$	20
Less: Income tax expense (benefit)		1		(1	)		(5	)
Stock-based compensation expense, net of income taxes	$	30	$	24		$	15

Certain share-based compensation expense relates to stock-based awards awarded to key employees of the Company as part of Honeywell’s incentive compensation plans prior to the Spin-Off. Such share-based compensation expense was $16 million for the period from January 1, 2018 until October 29, 2018.