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Stock-Based Compensation | 9 Months Ended
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Sep. 30, 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 $71 million and $202 million for the three and nine months ended September 30, 2025, respectively, and $52 million and $171 million for the three and nine months ended September 30, 2024, respectively. The following table illustrates the type and fair value of the stock-based compensation awards granted during the nine months ended September 30, 2025 and 2024, respectively:
| Nine Months Ended September 30, 2025 |  | Nine Months Ended September 30, 2024
| Shares Granted |  | Weighted-Average Fair Value Per Share |  | Shares Granted |  | Weighted-Average Fair Value Per Share
Stock options | 299,523 |  |  | $ | 106.04 |  |  | 296,295 |  |  | $ | 104.27 |
RSUs | 477,750 |  |  | $ | 338.61 |  |  | 379,621 |  |  | $ | 338.65 |
PRSUs | 201,934 |  |  | $ | 345.60 |  |  | 169,120 |  |  | $ | 408.64 |
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 nine months ended September 30, 2025 and 2024, respectively:
| Grant Year
| 2025 |  | 2024
Weighted-average dividend yield | 2.13% |  | 2.40%
Weighted-average volatility | 30.5% |  | 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 lives | 7 years |  | 7 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 nine months ended September 30, 2025 and 2024, respectively:
| Grant Year
| 2025 |  | 2024 |  |
Expected volatility of the Company's stock | 29.5% |  | 29.8% |  |
Risk-free interest rate | 3.90% |  | 4.38% |  |
As of September 30, 2025, the total remaining unrecognized compensation expense related to nonvested stock-based compensation awards was $229 million, which will be amortized over the weighted-average remaining requisite service periods of approximately 2.0 years.

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