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Share-Based Compensation Plans (Tables)
12 Months Ended
Dec. 31, 2021
Share-based Payment Arrangement [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, 2019

 

672

 

$85

 

 

 

 

Granted

 

174

 

84

 

 

 

 

Exercised

 

  (79)

 

65

 

 

 

$2

Expired or cancelled

 

                            (44)

 

91

 

 

 

 

Outstanding, December 31, 2019

 

723

 

$87

 

6.1

 

$10

Exercisable, December 31, 2019

 

426

 

$82

 

4.5

 

$8

Outstanding, January 1, 2020

 

723

 

$87

 

 

 

 

Granted

 

156

 

93

 

 

 

 

Exercised

 

  (90)

 

59

 

 

 

$3

Expired or cancelled

 

  (1)

 

54

 

 

 

 

Outstanding, December 31, 2020

 

788

 

$91

 

6.2

 

$4

Exercisable, December 31, 2020

 

455

 

$90

 

4.5

 

$3

Outstanding, January 1, 2021

 

788

 

$91

 

 

 

 

Granted

 

130

 

92

 

 

 

 

Exercised

 

  (38)

 

93

 

 

 

$

Expired or cancelled

 

  (28)

 

123

 

 

 

 

Outstanding, December 31, 2021

 

852

 

$90

 

6.1

 

$8

Exercisable, December 31, 2021

 

510

 

$89

 

4.8

 

$6

Schedule of Options Outstanding and Exercisable

Options outstanding and exercisable as of December 31, 2021 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

$75-$80

 

200

 

3.3

 

$76

 

200

 

$76

$81-$89

 

179

 

6.4

 

84

 

103

 

84

$90-$95

 

286

 

8.6

 

93

 

39

 

93

$96-$123

 

187

 

5.1

 

109

 

168

 

107

 

 

852

 

6.1

 

$90

 

510

 

$89

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

 

2021

 

 

2020

 

 

2019

 

Average risk-free interest rate

 

 

0.7

%

 

 

1.5

%

 

 

2.5

%

Expected dividend yield

 

 

2.7

%

 

 

2.5

%

 

 

2.9

%

Expected volatility

 

 

35.0

%

 

 

27.0

%

 

 

27.0

%

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, 2019

 

 

396

 

 

$

92

 

 

 

1.3

 

 

 

 

Granted

 

 

236

 

 

 

84

 

 

 

 

 

 

 

Vested

 

 

(150

)

 

 

76

 

 

 

 

 

 

 

Forfeited

 

 

(36

)

 

 

93

 

 

 

 

 

 

 

Unvested, December 31, 2019

 

 

446

 

 

$

97

 

 

 

1.5

 

 

 

 

Granted

 

 

200

 

 

$

92

 

 

 

 

 

 

 

Vested

 

 

(145

)

 

 

95

 

 

 

 

 

 

 

Forfeited

 

 

(17

)

 

 

93

 

 

 

 

 

 

 

Unvested, December 31, 2020

 

 

484

 

 

$

94

 

 

 

1.4

 

 

 

 

Granted

 

 

208

 

 

$

87

 

 

 

 

 

 

 

Vested

 

 

(124

)

 

 

106

 

 

 

 

 

 

 

Forfeited

 

 

(23

)

 

 

84

 

 

 

 

 

 

 

Unvested, December 31, 2021

 

 

545

 

 

$

85

 

 

 

1.3

 

 

$

53

 

Performance Share Units

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

 

 

2018

 

2019

 

2020

 

2021

 

2021

 

Grant Date(s)

February 15, 2018

 

February 15, 2019

 

February 14, 2020

 

February 12, 2021

 

February 12, 2021

 

Performance Period (years)

2018-2020

 

2019-2021

 

2020-2022

 

2021-2022

 

2021

 

Vesting Date(1)

February 2021

 

February 2022

 

February 2023

 

February 2023

 

February 2024

 

Payout Levels (in units):

 

 

 

 

 

 

 

 

 

 

Threshold Award

 

42,361

 

 

61,381

 

 

59,698

 

 

39,882

 

 

61,076

 

Target Award

 

84,726

 

 

122,761

 

 

119,395

 

 

79,763

 

 

122,152

 

Outstanding Award

 

169,452

 

 

245,522

 

 

238,790

 

 

159,526

 

 

244,304

 

Shares Issued in 2021

 

42,365

 

 

 

 

 

 

 

 

 

Payout Achieved
Over Performance Period

 

 

 

81,700

 

 

 

 

 

 

 

 

(1) Awards are scheduled to vest after the People, Culture and Compensation Committee of the Board of Directors determines the achievement of the performance criteria.