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16. STOCK-BASED COMPENSATION PLANS

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As of March 31, 2023, we had approximately 5Ìýmillion shares remaining under the stock-based compensation plans available for grant. Option awards have a maximum contractual term of 10 years and generally must have an exercise price at least equal to the market price of our common stock on the date the option award is granted. Outstanding stock-based awards generally vest annually over a three-year period or in total at the end of a three-year period. Certain performance share unit awards vest in total at the end of a two-year period.

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The compensation cost from continuing operations under the stock-based compensation plans for our Company and ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾ International were as follows (dollars in millions):

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The total income tax benefit recognized in the condensed consolidated statements of operations for us and ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾ International for stock-based compensation arrangements was $1Ìýmillion and $4Ìýmillion for the three months ended March 31, 2023 and 2022, respectively.

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Stock Options

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The fair value of each stock option award is estimated on the date of grant using the Black-Scholes valuation model that uses the assumptions noted in the following table. Expected volatilities are based on the historical volatility of our common stock through the grant date. The expected term of options granted was estimated based on the contractual term of the instruments and employees� expected exercise and post-vesting employment termination behavior. The risk-free rate for periods within the contractual life of the option was based on the U.S. Treasury yield curve in effect at the time of grant. The assumptions noted below represent the weighted average of the assumptions utilized for stock options granted during the periods.

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During each of the three months endedÌý March 31, 2023Ìýand 2022, no stock options were granted.

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A summary of stock option activity under the stock-based compensation plans as of March 31, 2023 and changes during the three months then ended is presented below:

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As of March 31, 2023, there was approximately $1Ìýmillion of total unrecognized compensation cost related to nonvested stock option arrangements granted under the stock-based compensation plans. That cost is expected to be recognized over a weighted-average period of approximately 0.9Ìýyears.Ìý

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The total intrinsic value of stock options exercised during the three months ended March 31, 2023 and 2022 was approximately nil andÌý$11Ìýmillion, respectively. Cash received from stock options exercised during the three months ended March 31, 2023 and 2022 was approximately nil and $5 million, respectively. The cash tax benefit from stock options exercised during the three months ended March 31, 2023 and 2022 was approximately nil and $2Ìýmillion, respectively.

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Nonvested Shares

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Nonvested shares granted under the stock-based compensation plans consist of restricted stock and performance share unit awards, which are accounted for as equity awards, and phantom stock, which is accounted for as a liability award because it can be settled in either stock or cash. The fair value of each restricted stock and phantom stock award is estimated to be the closing stock price of ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½Íøվ’s stock on the date of grant.

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We grant two types of performance share unit awards.ÌýFor one type of performance share unit award, the performance criteria are total stockholder return of our common stock relative to the total stockholder return of a specified industry peer group for the three-year performance periods. The fair value of each performance share unit award is estimated using a Monte Carlo simulation model that uses various assumptions, including an expected volatility rate and a risk-free interest rate. For the three months ended March 31, 2023 and 2022, the weighted-average expected volatility rate was 37.6% and 43.5%, respectively, and the weighted average risk-free interest rate was 4.38% and 1.67%, respectively. For the performance share unit awards granted duringÌýthe three months ended March 31, 2023 and 2022, the number of shares earned varies based upon the Company achieving certain performance criteria over a three-year performance period.

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During the first quarter of 2022, we grantedÌýa second type of performance share unit award, which also includes a market condition.ÌýThe performance criteria are our corporate free cash flow achieved relative to targets set by management, modified for the total stockholder return of our common stock relative to the total stockholder return of a specified industry peer group for the two-year performance period. The fair value of each performance share unit award is estimated using a Monte Carlo simulation model that uses various assumptions, including an expected volatility rate and a risk-free interest rate. For the three months ended March 31, 2022, the weighted-average expected volatility rate was 37.9% and the weighted average risk-free interest rate was 1.43%. For the performance share unit awards granted during the three months ended March 31, 2022,Ìýthe number of shares earned varies based upon the Company achieving certain performance criteria over a two-year performance period. No performance share unit awards of this type were granted during the three months ended March 31, 2023.

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A summary of the status of our nonvested shares as of March 31, 2023 and changes during the three months then ended is presented below:

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As of March 31, 2023, there was approximately $52Ìýmillion of total unrecognized compensation cost related to nonvested share compensation arrangements granted under the stock-based compensation plans. That cost is expected to be recognized over a weighted-average period of approximately 2.3Ìýyears. The value of share awards that vested during the three months ended March 31, 2023 and 2022 was approximately $28Ìýmillion and $31Ìýmillion, respectively.

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