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Stock-Based Compensation
 3 Months Ended
Mar. 31, 2025
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation Stock-based compensation
 
Accounting for stock-based compensation requires that the cost resulting from all stock-based payments be recognized in the financial statements based on the grant date fair value of the award.  Our stock-based compensation consists of stock options, restricted stock units (RSUs) and performance-based restricted stock units (PRSUs).

We recognized pretax stock-based compensation expense of $45 million and $44 million for the three months ended March 31, 2025 and 2024, respectively.
The following table illustrates the type and fair value of the stock-based compensation awards granted during the three months ended March 31, 2025 and 2024, respectively:

 Three Months Ended March 31, 2025Three Months Ended March 31, 2024
 Shares GrantedWeighted-Average Fair Value Per ShareWeighted-Average Grant Date Stock PriceShares GrantedWeighted-Average Fair Value Per ShareWeighted-Average Grant Date Stock Price
Stock options280,013 $105.92 $332.04 296,295 $104.27 $338.65 
RSUs403,407 $332.95 $332.95 379,621 $338.65 $338.65 
PRSUs167,301 $347.63 $332.04 169,120 $408.64 $338.65 
 
The fair value of our stock options was estimated using the Black-Scholes option-pricing model. The following table provides the assumptions used in determining the fair value of the stock-options granted in the three months ended March 31, 2025 and 2024, respectively:
 
 Grant Year
 20252024
Weighted-average dividend yield2.13%2.40%
Weighted-average volatility30.5%30.7%
Range of volatilities
26.6% - 32.6%
26.3% - 32.3%
Range of risk-free interest rates
4.13% - 4.40%
4.28% - 5.03%
Weighted-average expected lives7 years7 years
 
The PRSUs granted in 2025 and 2024 contain a market condition and a Monte Carlo simulation was utilized to estimate the fair value of the awards. The following table provides the assumptions used in determining the fair value of the PRSUs granted in the three months ended March 31, 2025 and 2024, respectively:

 Grant Year
 20252024
Expected volatility of the Company's stock29.5%29.8%
Risk-free interest rate3.90%4.38%
As of March 31, 2025, the total remaining unrecognized compensation expense related to nonvested stock-based compensation awards was $324 million, which will be amortized over the weighted-average remaining requisite service periods of approximately 1.9 years.