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STOCK-BASED COMPENSATION
 12 Months Ended
Dec. 31, 2024
Share-Based Payment Arrangement, Noncash Expense [Abstract]  
STOCK-BASED COMPENSATION STOCK-BASED COMPENSATION
Compensation expense and unearned compensation presented below exclude (i) amounts related to employees of our managed hotels and other employees whose payroll is reimbursed, as these expenses have been, and will continue to be, reimbursed by our third-party owners and are recognized in revenues for reimbursed costs and reimbursed costs on our consolidated statements of income and (ii) insignificant amounts related to employees of our owned and leased hotels recognized in owned and leased expenses on our consolidated statements of income. Stock-based compensation expense recognized in general and administrative expenses, distribution expenses, and transaction and integration costs on our consolidated statements of income related to our awards was as follows:
 Year Ended December 31,
 202420232022
SARs$15 $13 $12 
RSUs34 40 36 
PSUs15 22 13 
Total$64 $75 $61 
The income tax benefit recognized at the time of vest related to our awards was as follows:
 Year Ended December 31,
 202420232022
SARs$1 $1 $— 
RSUs7 5 5 
PSUs1 2 1 
Total$9 $8 $6 
SARs—A summary of SAR activity is presented below:
SARsWeighted-average exercise priceWeighted-average remaining contractual term
Outstanding at December 31, 20233,883,347 $67.20 5.68
Granted223,410 156.97 
Exercised(864,715)55.19 
Forfeited or expired— — 
Outstanding at December 31, 20243,242,042 $76.59 5.68
Exercisable at December 31, 20242,541,081 $65.23 5.03
The weighted-average grant date fair value for the awards granted in 2024, 2023, and 2022 was $68.77, $48.54, and $37.56, respectively.
The fair value of each SAR was estimated on the date of grant using the Black-Scholes-Merton option-pricing model with the following weighted-average assumptions:
202420232022
Exercise price$156.97$111.71$94.60
Expected life in years6.246.246.24
Risk-free interest rate4.31 %3.70 %2.40 %
Expected volatility38.60 %37.37 %36.07 %
Annual dividend yield0.38 %— %— %
Due to a lack of historical exercise activity, the expected life was estimated based on the midpoint between the vesting period and the contractual life of each SAR. The risk-free interest rate was based on U.S. Treasury instruments with similar expected life. We calculate volatility using our trading history over a time period consistent with our expected term assumption. The dividend yield assumption is based on the expected annualized dividend payment at the date of grant.
During the years ended December 31, 2024, December 31, 2023, and December 31, 2022, the intrinsic value of exercised SARs was $85 million, $47 million, and $21 million, respectively. The total intrinsic value of SARs outstanding at December 31, 2024 was $261 million, and the total intrinsic value for exercisable SARs at December 31, 2024 was $233 million.
RSUs—A summary of the status of the nonvested RSU awards outstanding under the LTIP, including certain RSUs with a performance component, is presented below:
RSUsWeighted-average grant date fair value
Nonvested at December 31, 20231,140,535 $93.01 
Granted327,657 156.75 
Vested(561,679)86.81 
Forfeited or canceled(32,834)112.47 
Nonvested at December 31, 2024873,679 $120.17 
The weighted-average grant date fair value for the awards granted in 2024, 2023, and 2022 was $156.75, $111.26, and $91.95, respectively. The liability and related expense for granted cash-settled RSUs are insignificant at and for the year ended December 31, 2024. The fair value of RSUs vested during the years ended December 31, 2024, December 31, 2023, and December 31, 2022 was $49 million, $55 million, and $41 million, respectively.
At December 31, 2024, the total intrinsic value of nonvested RSUs was $137 million.
PSUs—A summary of the status of the nonvested PSU awards outstanding under the LTIP is presented below:
PSUsWeighted-average grant date fair value
Nonvested at December 31, 2023555,401 $91.45 
Granted177,795 159.69 
Vested(226,038)119.56 
Forfeited or canceled— — 
Nonvested at December 31, 2024507,158 $102.84 
The weighted-average grant date fair value for the awards granted in 2024, 2023, and 2022 was $159.69, $120.64, and $83.58, respectively. During the year ended December 31, 2024, $27 million of PSUs vested. During the year ended December 31, 2023, no PSUs vested. During the year December 31, 2022, $10 million of PSUs vested.
At December 31, 2024, the total intrinsic value of nonvested PSUs was $80 million, if target performance is achieved.
Unearned Compensation—Our total unearned compensation for our stock-based compensation programs at December 31, 2024 was $2 million for SARs, $33 million for RSUs, and $13 million for PSUs, which will be recognized in general and administrative expenses, distribution expenses, and transaction and integration costs over a weighted-average period of one year with respect to PSUs, two years with respect to SARs, and three years with respect to RSUs.
On May 15, 2024, our stockholders approved the Fifth Amended and Restated Hyatt Hotels Corporation Long-Term Incentive Plan (the "2024 LTIP") subsequent to the adoption of such amended plan by our board of directors. The 2024 LTIP (i) increased the share limit by 5,650,000 shares, (ii) was updated to reflect market practices with respect to broker-assisted sales and data privacy, and (iii) extended the term of the 2024 LTIP by 10 years until the 10th anniversary of May 15, 2024, the date on which the 2024 LTIP was approved by our stockholders.