The Company’s outstanding share-based awards consist mainly of non-qualified stock options and restricted shares. As of December 31, 2025, the Company had 39 million shares available for future grants of share-based awards under the 2020 Stock Incentive Plan. As of December 31, 2025, there were 15 million shares of common stock available for issuance under the ESPP.

Stock option activity for the year ended December 31, 2025 is summarized in the table below:


	Shares	Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life	Aggregate Intrinsic Value
	(in millions)			(in years)	(in millions)
Outstanding at beginning of period	17	$	370
Granted	5	389
Exercised	(3)	215
Forfeited	(1)	491
Outstanding at end of period	18	391		5.6	$	546
Exercisable at end of period	11	336		4.0	505
Vested and expected to vest, end of period	18	390		5.5	542

Restricted share activity for the year ended December 31, 2025 is summarized in the table below:


(shares in millions)	Shares	Weighted-Average Grant Date Fair Value per Share
Nonvested at beginning of period	4	$	489
Granted	3	421
Vested	(2)	503
Nonvested at end of period	5	441

Other Share-Based Compensation Data


(in millions, except per share amounts)	For the Years Ended December 31,
	2025		2024		2023
Stock Options
Weighted-average grant date fair value of shares granted, per share	$	110	$	138	$	134
Total intrinsic value of stock options exercised	616		1,886		1,325
Restricted Shares
Weighted-average grant date fair value of shares granted, per share	421		523		493
Total fair value of restricted shares vested	553		690		803
Employee Stock Purchase Plan
Number of shares purchased	1		1		1
Share-Based Compensation Items
Share-based compensation expense, before tax	$	971	$	1,018	$	1,059
Share-based compensation expense, net of tax effects	865		896		937
Income tax benefit realized from share-based award exercises	130		216		231


(in millions, except years)	December 31, 2025
Unrecognized compensation expense related to share awards	$	1,333
Weighted-average years to recognize compensation expense	1.3

The principal assumptions the Company used in calculating grant-date fair value for stock options were as follows:


	For the Years Ended December 31,
	2025	2024	2023
Risk-free interest rate	3.7% - 4.3%	3.6% - 4.4%	3.8% - 4.6%
Expected volatility	25.1% - 33.5%	25.5% - 30.7%	29.7% - 30.6%
Expected dividend yield	1.7% - 3.5%	1.4% - 1.5%	1.3% - 1.5%
Forfeiture rate	5.0%	5.0%	5.0%
Expected life in years	4.8	4.6	4.6

Risk-free interest rates are based on U.S. Treasury yields in effect at the time of grant. Expected volatilities are based on the historical volatility of the Company’s common stock and the implied volatility from exchange-traded options on the Company’s common stock. Expected dividend yields are based on the per share cash dividend paid by the Company. The Company uses historical data to estimate option exercises and forfeitures within the valuation model. The expected lives of options granted represent the periods of time the awards granted are expected to be outstanding based on historical exercise patterns.

The Company offers various defined contribution retirement savings plans for its domestic employees. Compensation expense related to these plans was $850 million, $853 million and $804 million for the years ended December 31, 2025, 2024 and 2023, respectively.

In addition, the Company maintains non-qualified, deferred compensation plans, which allow certain members of senior management and executives to defer portions of their salary or bonus. The deferrals are recorded within long-term investments with an approximately equal amount in other liabilities in the Consolidated Balance Sheets. The total deferrals are distributable based upon termination of employment or other periods, as elected under each plan and were $2.2 billion and $2.1 billion as of December 31, 2025 and 2024, respectively.