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Share-Based Compensation Plans (Tables)
12 Months Ended
Dec. 31, 2019
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Summary of Stock Option Activity A summary of stock option activity is as follows:

 

 

 

Shares (000)

 

Wtd. Avg.

Exercise Price

Per Share

 

Wtd. Avg.

Remaining

Contractual

Term (years)

 

Aggregate

Intrinsic Value

(in millions)

Outstanding, January 1, 2017

 

1,127

 

$66

 

 

 

 

Granted

 

145

 

97

 

 

 

 

Exercised

 

(680)

 

64

 

 

 

$24

Expired or cancelled

 

(18)

 

75

 

 

 

 

Outstanding, December 31, 2017

 

574

 

$77

 

7.1

 

$28

Vested or expected to vest, December 31, 2017

 

571

 

$77

 

7.1

 

 

Exercisable, December 31, 2017

 

220

 

$65

 

5.3

 

$14

Outstanding, January 1, 2018

 

574

 

$77

 

 

 

 

Granted

 

122

 

123

 

 

 

 

Exercised

 

(24)

 

78

 

 

 

$1

Expired or cancelled

 

 

 

 

 

 

Outstanding, December 31, 2018

 

672

 

$85

 

5.9

 

$1

Vested or expected to vest, December 31, 2018

 

670

 

$85

 

5.9

 

 

Exercisable, December 31, 2018

 

401

 

$76

 

4.5

 

$1

Outstanding, January 1, 2019

 

672

 

$85

 

 

 

 

Granted

 

174

 

84

 

 

 

 

Exercised

 

(79)

 

65

 

 

 

$2

Expired or cancelled

 

(44)

 

91

 

 

 

 

Outstanding, December 31, 2019

 

723

 

$87

 

6.1

 

$10

Vested or expected to vest, December 31, 2019

 

722

 

$87

 

6.1

 

 

Exercisable, December 31, 2019

 

426

 

$82

 

4.5

 

$8

Schedule of Options Outstanding and Exercisable

 


Options outstanding and exercisable as of December 31, 2019 were as follows:

 

 

 

Options Outstanding

 

Options Exercisable

Exercise Price

 

Shares (000)

 

Weighted-

Average

Remaining

Contractual

Life (years)

 

Weighted-

Average

Exercise

Price

 

Shares (000)

 

Weighted-

Average

Exercise

Price

$44-$59

 

66

 

2.1

 

$51

 

66

 

$51

$60-$79

 

225

 

5.3

 

76

 

196

 

76

$80-$99

 

319

 

7.2

 

89

 

115

 

93

$100-$123

 

113

 

6.6

 

123

 

49

 

123

 

 

723

 

6.1

 

$87

 

426

 

$82

Assumptions Used to Estimate Fair Value of Share Awards

We estimated the fair value of each stock option on the date of grant using the Black-Scholes option pricing model and the following assumptions:

 

Year Ended December 31

 

2019

 

 

2018

 

 

2017

 

Average risk-free interest rate

 

 

2.5

%

 

 

2.6

%

 

 

2.0

%

Expected dividend yield

 

 

2.9

%

 

 

1.6

%

 

 

2.0

%

Expected volatility

 

 

27.0

%

 

 

27.0

%

 

 

31.0

%

Expected term (years)

 

 

6.0

 

 

 

6.0

 

 

 

6.0

 

 

Summary of Restricted Stock Activity

A summary of restricted stock activity is as follows:

 

 

 

Shares (000)

 

Wtd. Avg.

Price Per Share

 

Wtd. Avg.

Remaining

Contractual

Term (years)

 

Aggregate

Intrinsic Value

(in millions)

Unvested, January 1, 2017

 

451

 

$70

 

1.4

 

 

Granted

 

167

 

98

 

 

 

 

Vested

 

(133)

 

79

 

 

 

 

Forfeited

 

(37)

 

80

 

 

 

 

Unvested, December 31, 2017

 

448

 

$77

 

1.2

 

 

Granted

 

145

 

$119

 

 

 

 

Vested

 

(174)

 

77

 

 

 

 

Forfeited

 

(23)

 

89

 

 

 

 

Unvested, December 31, 2018

 

396

 

$92

 

1.3

 

 

Granted

 

236

 

$84

 

 

 

 

Vested

 

(150)

 

76

 

 

 

 

Forfeited

 

(36)

 

93

 

 

 

 

Unvested, December 31, 2019

 

446

 

$97

 

1.5

 

$43

Performance Share Units

A summary of the performance share units detail by grant year is as follows:

 

 

 

2016

 

 

2017

 

 

2018

 

 

2019

 

Grant Date(s)

 

February 16, 2016

 

 

February 9, 2017

 

 

February 15, 2018

 

 

February 15, 2019

 

Performance Period (years)

 

2016-2018

 

 

2017-2019

 

 

2018-2020

 

 

2019-2021

 

Vesting Date

 

February 2019

 

 

February 2020(a)

 

 

February 2021(a)

 

 

February 2022(a)

 

Payout Levels (in units):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Threshold Award

 

 

65,141

 

 

 

57,563

 

 

 

47,003

 

 

 

68,132

 

Target Award

 

 

130,282

 

 

 

115,125

 

 

 

94,005

 

 

 

136,264

 

Outstanding Award

 

 

260,564

 

 

 

230,250

 

 

 

188,010

 

 

 

272,528

 

Shares Issued in 2019

 

 

125,070

 

 

 

 

 

 

 

 

 

 

Payout Achieved Over Performance Period

 

 

 

 

 

88,377

 

 

 

 

 

 

 

 

(a) 2017, 2018 and 2019 awards are scheduled to vest in February 2020, 2021 and 2022, respectively, when the Executive Compensation and Human Resources Committee of the Board of Directors determines the achievement of the performance criteria.