Table of Contents TABLE II— Additional Stock-based Award Information (Dollars in millions except per share data) 2019 2018 2017 Stock options/SARs activity: Weighted-average fair value per share of stock awards granted $ 40.98 $ 46.09 $ 25.01 Intrinsic value of stock awards exercised $ 264 $ 348 $ 504 Fair value of stock awards vested  1 $ 100 $ 86 $ 191 Cash received from stock awards exercised $ 298 $ 370 $ 629 RSUs activity: Weighted-average fair value per share of stock awards granted $ 138.61 $ 150.58 $ 90.11 Fair value of stock awards vested  2 $ 110 $ 180 $ 189 PRSUs activity: Weighted-average fair value per share of stock awards granted $ 138.67 $ 150.98 $ 86.78 Fair value of stock awards vested  2 $ 59 $ 70 $ 20 1 Based on the grant date fair value. 2 Based on the underlying stock’s closing market price on the vesting date. Before tax, stock-based compensation expense for 2019, 2018 and 2017 was $205 million, $197 million and $206 million, respectively, with a corresponding income tax benefit of $35 million, $36 million and $40 million, respectively. The amount of stock-based compensation expense capitalized for the years ended December 31, 2019, 2018 and 2017 did not have a significant impact on our financial statements. At December 31, 2019, there was $161 million of total unrecognized compensation cost from stock-based compensation arrangements granted under the plans, which is related to non-vested stock-based awards. The compensation expense is expected to be recognized over a weighted- average period of approximately 1.6 years. We currently use shares in treasury stock to satisfy share award exercises. The cash tax benefits realized from stock awards exercised for 2019, 2018 and 2017 were $89 million, $103 million and $205 million, respectively. We use the direct only method and tax law ordering approach to calculate the tax effects of stock-based compensation.  Our earnings and cash flow are subject to fluctuations due to changes in foreign currency exchange rates, interest rates and commodity prices. Our Risk Management Policy (policy) allows for the use of derivative financial instruments to prudently manage foreign currency exchange rate, interest rate and commodity price exposures. Our policy specifies that derivatives are not to be used for speculative purposes. Derivatives that we use are primarily foreign currency forward, option and cross currency contracts, interest rate contracts and commodity forward and option contracts. Our derivative activities are subject to the management, direction and control of our senior financial officers. Risk management practices, including the use of financial derivative instruments, are presented to the Audit Committee of the Board of Directors at least annually. 4. Derivative financial instruments and risk management 83 In accordance with guidance on share-based payments, stock-based compensation expense is based on the grant date fair value and is classified within Cost of goods sold, Selling, general and administrative expenses and Research and development expenses corresponding to the same line item as the cash compensation paid to respective employees, officers and non-employee directors. Stock-based compensation expense is recognized on a straight-line basis over the requisite service period for awards with terms that specify cliff or graded vesting and contain only service conditions. Stock-based compensation expense for PRSUs is based on the probable number of shares expected to vest and is recognized primarily on a straight-line basis.