v3.25.4
Stock-Based Compensation (Tables)
 12 Months Ended
Dec. 31, 2025
Share-Based Payment Arrangement [Abstract]  
Summary of stock option and RSU activity
Our stock options and RSUs outstanding as of December 31, 2025, and changes during the year, are as follows:
TABLE 10.1: STOCK OPTIONS AND RSUs OUTSTANDING
 Stock OptionsService-Based RSUsService and Performance-Based RSUs
(Numbers in thousands)
Number
Weighted-Average
Exercise Price
Number
Weighted-
Average Grant-
Date Fair Value
Number
Weighted-
Average Grant-
Date Fair Value
Outstanding as of December 31, 20242,718 $139.54 1,807 $183.41 3,026 $170.97 
Granted176 315.25 662 315.35 1,468 275.92 
Options exercised/RSUs vested(570)98.68 (943)173.90 (1,111)163.38 
Forfeited(22)148.45 (52)244.26 (70)213.00 
Expired— — — — — — 
Outstanding as of December 31, 20252,301 163.02 1,475 $246.57 3,314 $219.15 
Options vested and expected to vest as of December 31, 20252,301 163.02 
Options exercisable as of December 31, 20251,415 $137.16 
Weighted-average assumptions used for options
The fair value of options without market conditions is estimated on the grant date using a Black-Scholes-Merton option-pricing model. The following weighted-average assumptions were used for options granted in 2025, 2024 and 2023:
TABLE 10.2: WEIGHTED-AVERAGE ASSUMPTIONS FOR OPTIONS GRANTED
202520242023
Dividend yield0.9 %1.5 %1.4 %
Expected volatility(a)
32 %31 %32 %
Risk-free interest rate4.4 %3.9 %3.5 %
Expected life of stock option (in years)(b)
6.96.97.1
Weighted-average fair value per option$119.68 $68.79 $60.03 
(a)The expected volatility is based on historical and implied volatilities of our common stock price.
(b)The expected life of stock options was determined using historical option exercise behavior.
Weighted-average remaining contractual life and aggregate intrinsic value of stock options
The weighted-average remaining contractual life and the aggregate intrinsic value (the amount by which the fair value of our stock price exceeds the exercise price of the option) of the stock options outstanding, exercisable, and vested and expected to vest as of December 31, 2025, were as follows:
TABLE 10.3: WEIGHTED-AVERAGE CONTRACTUAL LIFE AND AGGREGATE INTRINSIC VALUE OF OPTIONS
OutstandingExercisableVested and
Expected to Vest
Weighted-average remaining contractual life (in years)
5.24.05.2
Aggregate intrinsic value (millions)
$476 $329 $476 
Schedule of share-based payment award, valuation assumptions The weighted averages of the following assumptions used in 2025, 2024 and 2023 were:
TABLE 10.4: RSU VALUATION MODEL WEIGHTED-AVERAGE ASSUMPTIONS
202520242023
Expected volatility
29 %30 %45 %
Risk-free interest rate4.2 %4.0 %3.7 %
Remaining performance period (in years)
2.92.92.9