Annual report pursuant to Section 13 and 15(d)

Share-Based Compensation (Tables)

v3.25.0.1
Share-Based Compensation (Tables)
 12 Months Ended
Dec. 31, 2024
Share-Based Payment Arrangement [Abstract]  
Schedule of Share-based Compensation Expense, Net
Total share-based compensation costs, net of forfeitures, consisted of the following (in millions):
Year Ended December 31,
2024 2023 2022
Share-based compensation costs before income taxes:
Equity awards $ 121  $ 100  $ 112 
Liability awards 101  155  97 
Total share-based compensation 222  255  209 
Capitalized share-based compensation (7) (5) (4)
Total share-based compensation expense before income taxes $ 215  $ 250  $ 205 
Tax benefit associated with share-based compensation costs $ 46  $ 54  $ 48 
Schedule of Nonvested Share Activity
The table below provides a summary of activity related to our RSUs and PSUs (in millions, except for per unit information):
Restricted Stock Units Performance Stock Units
Equity Awards Liability Awards Equity Awards Liability Awards
  Units Weighted Average Grant Date Fair Value Per Unit Units Weighted Average Grant Date Fair Value Per Unit Units Weighted Average Grant Date Fair Value Per Unit Units Weighted Average Grant Date Fair Value Per Unit
Non-vested at January 1, 2024
 1.6  $ 123.24  0.2  $ 182.15  0.5  $ 124.19  0.6  $ 261.24 
Granted (1) 0.6  159.88  0.0  214.87  0.2  170.89  —  — 
Incremental units achieved (2) —  —  —  —  0.1  159.98  —  — 
Forfeited 0.0  149.36  —  —  —  —  —  — 
Reclassifications (3) (0.1) 146.67  0.1  205.21  (0.2) 158.77  0.2  271.19 
Vested (4) (0.8) 108.69  (0.1) 167.20  (0.2) 69.14  (0.3) 252.30 
Non-vested at December 31, 2024
 1.3  $ 149.52  0.2  $ 214.87  0.4  $ 153.07  0.5  $ 298.22 

(1)The Equity Awards column for PSUs includes 0.1 million PSUs granted in 2024 to certain officers containing a cash settlement cap of $3 million.
(2)Represents incremental units recognized as a result of final performance measures or changes in estimated measures. As of December 31, 2024, there were 0.2 million PSUs that would be issued if the maximum level of performance under the target awards amount is achieved.
(3)During the years ended December 31, 2024, 2023 and 2022, we recognized $14 million, $86 million and $56 million, respectively, in incremental expense as a result of significant modifications involving reclassification between equity awards and liability awards, attributable to seven, six and six employees, respectively.
(4)The total fair value of RSUs and PSUs vested was $171 million and $112 million, respectively, for the year ended December 31, 2024.
Schedule Of Share Based-Payment Award, Performance Stock Units, Valuation Assumptions
The table below provides the assumptions used in estimating the fair value of unvested awards containing market conditions as of the end of the respective periods, and for which the performance period had not yet ended:
Year Ended December 31,
2024 2023 2022
Fair value assumptions:
Dividend yield (1) —  % —  % —  %
Expected volatility (2)(3)
21.5% - 24.3%
27.5% - 32.7%
36.4% - 40.2%
Weighted average expected volatility 22.9  % 29.9  % 38.6  %
Risk-free interest rate (2)
4.2% - 4.3%
4.2% - 4.8%
4.4% - 4.7%
Weighted average expected remaining term, in years 1.5 1.5 1.4
(1)The performance stock units are entitled to dividend equivalents during the performance period. Therefore, when calculating simulated returns, we applied an annual dividend yield of zero percent.
(2)Represents the range associated with individual vesting years.
(3)The expected volatility is based on historical and implied volatilities of our common stock price.