Stock-Based Compensation

6 Months Ended

Jun. 30, 2021

16. Stock-Based Compensation:

Stock-based compensation cost is measured at grant date, based on the fair value of the award, and is recognized over the employee requisite service period. The following table presents total stock-based compensation cost included in income from continuing operations.


	Three Months Ended June 30,				Six Months Ended June 30,
(Dollars in millions)	2021		2020		2021		2020
Cost	$	41	$	40	$	82	$	67
Selling, general and administrative		152		155		275		272
Research, development and engineering		50		52		99		97
Pre-tax stock-based compensation cost	$	243	$	247	$	457	$	436
Income tax benefits		(69)		(52)		(121)		(96)
Total net stock-based compensation cost	$	175	$	196	$	336	$	340

Pre-tax stock-based compensation cost for the three months ended June 30, 2021 decreased $4 million compared to the corresponding period in the prior year. This was primarily due to decreases from performance share units ($8 million), partially offset by increases from restricted stock units ($3 million).

Pre-tax stock-based compensation cost for the six months ended June 30, 2021 increased $21 million compared to the corresponding period in the prior year. This was primarily due to increases related to restricted stock units ($10 million) and performance share units ($9 million).

Total unrecognized compensation cost related to non-vested awards at June 30, 2021 was $1.5 billion and is expected to be recognized over a weighted-average period of approximately 2.3 years.

Capitalized stock-based compensation cost was not material at June 30, 2021 and 2020.