Annual report pursuant to Section 13 and 15(d)

Stock-Based Compensation (Tables)

v3.22.4
Stock-Based Compensation (Tables)
 12 Months Ended
Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]  
Activity Related to Incentive Equity Awards
The activity related to the Company’s incentive equity awards for the year ended December 31, 2022 consisted of the following:
RSUs
PSUs
Number of
RSUs
Weighted
Average
Grant Price
Number
of
PSUs
Weighted
Average
Grant Price
Balance as of December 31, 2021 1.2  $ 60.37  0.3  $ 57.51 
Granted (a)
0.3  81.71  0.1 
(b)
 82.74 
Vested
 (0.4) 58.58  —  — 
Canceled
 (0.1) 66.08  (0.1) 55.26 
Balance as of December 31, 2022 1.0 
(c)
 $ 67.90  0.3 
(d)
 $ 69.82 
_____________________
(a)Represents awards granted by the Company primarily in March 2022.
(b)Represents awards granted by the Company at the maximum achievement level of 200% of target payout. Actual shares that may be issued can range from 0% to 200% of target.
(c)RSUs outstanding as of December 31, 2022 have an unrecognized compensation expense of $48 million, which is expected to be recognized over a weighted average period of 2.5 years.
(d)PSUs outstanding as of December 31, 2022 have an aggregate maximum potential unrecognized compensation expense of $16 million, which may be recognized over a weighted average period of 1.6 years based on attainment of targets.
The activity related to stock options granted by the Company for the year ended December 31, 2022 consisted of the following:
Number of Options
Weighted Average Exercise Price
Weighted Average Remaining Contractual Life (Years)
Aggregate Intrinsic Value (in millions)
Outstanding as of December 31, 2021 1.1  $ 56.04 
Granted
 —  — 
Exercised (0.1) 58.87 
Canceled —  — 
Outstanding as of December 31, 2022
 1.0  $ 55.90  3.6 $ 16 
Unvested as of December 31, 2022
 0.4 
(a)
 $ 55.17  3.9 $ 6 
Exercisable as of December 31, 2022
 0.6  $ 56.30  3.5 $ 10 
_____________________
(a)Unvested options as of December 31, 2022 are expected to vest over time and have an aggregate unrecognized compensation expense of $2 million, which will be recognized over a weighted average period of 1.5 years.
Schedule of Valuation Assumptions
2021 2020
Grant date fair value $19.58 $8.59
Grant date strike price $65.21 $53.40
Expected volatility 40.18% 24.30%
Expected life 4.25 years 4.25 years
Risk-free interest rate 0.40% 1.21%
Projected dividend yield 0.98% 2.40%