Share-Based Compensation (Notes)

12 Months Ended

Dec. 31, 2024

Share-Based Payment Arrangement [Abstract]

Share-based Payment Arrangement [Text Block]

Share-Based Compensation

The Company’s outstanding share-based awards consist mainly of non-qualified stock options and restricted shares. As of December 31, 2024, the Company had 48 million shares available for future grants of share-based awards under the 2020 Stock Incentive Plan. As of December 31, 2024, there were 16 million shares of common stock available for issuance under the ESPP.

Stock Options

Stock option activity for the year ended December 31, 2024 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	21	$	320
Granted	3	522
Exercised	(6)	253
Forfeited	(1)	480
Outstanding at end of period	17	370		5.6	$	2,338
Exercisable at end of period	10	298		4.2	2,115
Vested and expected to vest, end of period	17	368		5.5	2,335

Restricted Shares

Restricted share activity for the year ended December 31, 2024 is summarized in the table below:


(shares in millions)	Shares	Weighted-Average Grant Date Fair Value per Share
Nonvested at beginning of period	4	$	449
Granted	2	523
Vested	(2)	435
Nonvested at end of period	4	489

Other Share-Based Compensation Data


(in millions, except per share amounts)	For the Years Ended December 31,
	2024		2023		2022
Stock Options
Weighted-average grant date fair value of shares granted, per share	$	138	$	134	$	116
Total intrinsic value of stock options exercised	1,886		1,325		1,419
Restricted Shares
Weighted-average grant date fair value of shares granted, per share	523		493		483
Total fair value of restricted shares vested	690		803		760
Employee Stock Purchase Plan
Number of shares purchased	1		1		1
Share-Based Compensation Items
Share-based compensation expense, before tax	$	1,018	$	1,059	$	925
Share-based compensation expense, net of tax effects	896		937		836
Income tax benefit realized from share-based award exercises	216		231		207


(in millions, except years)	December 31, 2024
Unrecognized compensation expense related to share awards	$	1,099
Weighted-average years to recognize compensation expense	1.3

Share-Based Compensation Recognition and Estimates

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


	For the Years Ended December 31,
	2024	2023	2022
Risk-free interest rate	3.6% - 4.4%	3.8% - 4.6%	1.9% - 4.3%
Expected volatility	25.5% - 30.7%	29.7% - 30.6%	30.6% - 30.8%
Expected dividend yield	1.4% - 1.5%	1.3% - 1.5%	1.2%
Forfeiture rate	5.0%	5.0%	5.0%
Expected life in years	4.6	4.6	4.7

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.

Other Employee Benefit Plans

The Company offers a 401(k) plan for its employees. Compensation expense related to this plan was not material for the years ended December 31, 2024, 2023 and 2022.

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 $2.1 billion and $1.9 billion as of December 31, 2024 and 2023, respectively.