v3.25.4
Stock Options and Other Stock Plans (Tables)
 12 Months Ended
Dec. 31, 2025
Share-Based Payment Arrangement [Abstract]  
Schedule of Stock Based Compensation Expense
Information regarding stock-based compensation expense appears in the table below:
Millions202520242023
Stock-based compensation, before tax:
Stock options$24 $18 $16 
Retention awards102 77 71 
ESPP16 23 20 
Total stock-based compensation, before tax$142 $118 $107 
Excess income tax benefits from equity compensation plans$12 $15 $11 
Schedule of Annual Weighted Average Assumptions
The table below shows the annual weighted-average assumptions used for Black-Scholes valuation purposes:
Weighted-average assumptions202520242023
Risk-free interest rate4.3%4.2%3.9%
Dividend yield2.2%2.1%2.6%
Expected life (years)4.34.44.5
Volatility22.4%28.7%29.3%
Weighted-average grant-date fair value of options granted$48.70 $61.75 $48.31 
Schedule of Stock Option Activity
A summary of stock option activity during 2025 is presented below:
Options (thous.)Weighted-average exercise priceWeighted-average remaining contractual term (yrs.)Aggregate intrinsic value (millions)
Outstanding at January 1, 20251,981$195.81 5.8$74 
Granted423243.51 N/AN/A
Exercised(288)157.41 N/AN/A
Forfeited or expired(21)238.93 N/AN/A
Outstanding at December 31, 20252,095$210.29 5.6$58 
Vested or expected to vest at December 31, 20252,074$210.03 5.6$58 
Options exercisable at December 31, 20251,400$196.12 4.2$55 
Schedule of Additional Information Regarding Stock Option Exercises Additional information regarding stock option exercises appears in the following table:
Millions202520242023
Intrinsic value of stock options exercised$26 $35 $23 
Cash received from option exercises51 46 27 
Treasury shares repurchased for employee payroll taxes(8)(8)(5)
Income tax benefit realized from option exercises4 7 5 
Aggregate grant-date fair value of stock options vested$16 $15 $14 
Schedule of Changes in Retention Awards
Changes in our retention awards during 2025 were as follows:
Shares (thous.)Weighted-Average Grant-Date Fair Value
Nonvested at January 1, 2025915$222.50 
Granted229243.48 
Vested(231)205.32 
Forfeited(35)230.34 
Nonvested at December 31, 2025878$232.18 
Schedule of Changes in Performance Stock Unit Awards
Changes in our performance stock unit awards during 2025 were as follows:
Shares (thous.)Weighted-Average Grant-Date Fair Value
Nonvested at January 1, 2025607$219.08 
Granted254243.51 
Vested(72)244.95 
Unearned(83)244.35 
Forfeited(87)219.28 
Nonvested at December 31, 2025619$222.68